Original AACSB: Analytic AICPA BB: Legal AICPA FN: Research Bloom's: Knowledge Difficulty: Hard 4. Custody of inventory is transferred to the shipping area upon authorization of: A. The customer order. B. The shipping order.
* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
You win a dollar if the proportion of red marbles is larger than that of blue marbles, that is, if you get a proportion > 0.5 of reds. We know by the law of averages that chance error relative to the number of draws = (proportion of reds you get)- (proportion of reds expected) gets smaller and smaller as n increases. So use that to decide between the choices. So n=200 will get you closer to the true proportion of reds ( > 1/2) than n=100, and therefore n=200 will get you closer to winning the $1. p.286.
Case Study 1 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. What is the break-even point in passengers and revenues per month? Contribution Margin/Passenger = 160 -70 Contribution margin ratio = 160- 70/ 160 Break Even Points in Units = (Total Fixed Costs + Target Profit )/Contribution Margin Break-even for passengers: (3,150,000 + 0) / (160-70):35000 Break Even Points in Sales = (Total Fixed Costs + Target Profit )/Contribution Margin Ratio Break-even for revenues: (3,150,000 + 0)/ (90/160): $5,600,000 b. What is the break-even point in number of passenger train cars per month?
Case Study 2 Solution Number of seats per passenger train car 90 Average load factor(percentage of seats filled) 70% Average full passenger fare $160 Average variable cost per passenger $70 Fixed operating cost per month $3,150,000 a. What is the break even point in passengers and revenues per month Contribution margin per passanger = $90 Break even point per passanger = $35,000 35000 Contribution margin ratio= $2 Break even point in dollars = $5,600,000 5600000 b. What is the break even point of passenger train cars per month 63 Compute # of seats per train car(remember load factor?) 555.5555556 Number of train cars rounded 556 c. If Springfield Express raises its average passenger fare to $190, it is estimated that the average load factor will decrease to 60 percent. What will the monthly break even point in the number of passenger cars?
Prepare contributions margins in part (1) with all revisions included. 3. For the original estimates, compute each of the following: (a) Break-even point for the given sales mix. (b) Margin of safety for the estimated sales volume. 3 Part A and B (Original Estimates) | Comp Paper | Napkins | Place mats | Poster Board | Total | Volume | 30000 | 120000 | 45000 | 80000 | | Selling price | 14 | 7 | 12 | 8.5 | | Material cost | 6 | 4.5 | 3.6 | 2.5 | | Units per hour | 6 | 10 | 5 | 4 | | Variable overheads | 9 | 6 | 12 | 8 | | Variable overheads per unit | 1.5 | 0.6 | 2.4 | 2 | | | | | | | | Sales (Volume*Selling Price) | 420000 | 840000 | 540000 | 680000 | 2480000 | Material cost | 180000 | 540000 | 162000
This project will need $3.4 million less than the P04 project and the only component in the investment, which will be more, compared to P04 is the building cost (378 K$). Cannibalization of other store’s sales As the nearest target store closest to the project is 80 miles away, no cannibalization of sales is expected. And this store will generate a sale of $30.5 million in 5 years, which will be almost 2.7 million dollars above expected sales from P04. This store is assumed to take it’s a maximum market share from Walmart in 2008. Store Sensitivities Even if this store has 18.1% lower sales than the forecasted level by R&P, it can achieve the accepted NPV of prototype, besides, construction cost can increase to near $10 million and still the project can achieve the expected NPV of the P04.
Forecasted sales $ (Y) = 13,483.46*1000 + 121.70*1000* %spanishsp – 38.68*1000*%dryers – 81.05*1000*%freezer + 8,980.09*1000*comptype1+ 3,984.43*1000*comtype2 – 3,147.38*1000*comtype7 Figure 6 Excerpt from Summary Output Interpretation of the final multiple regression equation to answer Question 1 Pam and Sue’s Case. The equation tells us that for stores in the area with same % of Spanish people, same % of households with dryers and freezers, competitive type 1 (comtype1) stores will add on average $8,980,090 of sales dollars and comtype2 stores will add on average $3,984,430 sales dollars more than other competitive type stores. For example, everything else unchanged, comtype 7 store would actually lower sales by $3,147.380 compared with other comtype
Financial Statement Analysis University of Phoenix ACC/300 Kai D Hintze, Instructor August 10, 2009 Financial Statement Analysis: List of Ratios 2003 2002 Earnings per share: Diluted: $1.62 Basic: $1.66 Diluted: $1.19 Basic: $1.24 Return on assets: $45,909.74 $41,522.01 Current ratio: 76% 62% Times interest earned: 6.96 12.72 Asset turnover: 100% 96% Debt to total assets: 273.58 204.91 Current cash debt coverage: $1.78 $1.91 Cash debt coverage: 0.39 0.47 Free cash flow: ($320,855,172 ($432,200,679) Based on this analysis, Landry’s Restaurants Inc. finances are in good standings. For the year of 2003, Landry’s Restaurants Inc. cost of revenues was
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