A manufacturer conducted a survey among 500 randomly selected target market households in the test market for its new disposable diapers. The objective of the survey was to determine the market share for its new brand. If the sample point estimate for market share is 16%, develop a 95% confidence interval. Can the company reasonably conclude that they have a 20% market share? How about an 18% market share?
> Bonavista Cribs manufactures baby cribs. It currently produces one model, the Surrey crib, and it is priced at $600. Variable manufacturing costs are $210 per unit and variable shipping costs are $60 per unit. Fixed costs are $2,574,000. In 2014, it sold
> Panther Productions is negotiating the next sequel to its Illinois Jones series. This negotiation is proving more difficult than for the original movie. There is a risk that the series may have peaked and the total box office receipts will drop. The budg
> CVP computations. Patel Manufacturing sold 200,000 units of its product for $30 per unit. Variable cost per unit is $25 and total fixed costs are $800,000. Required: 1.Calculate (a) contribution margin and (b) operating income. 2.Patel’s current manufac
> Panther Productions has just finished production of the most recent sequel in its Illinois Jones series. The film cost $22 million to produce. Most production personnel and actors were paid a fixed salary (included in the $22 million); however, the two m
> The Goldman Company retails two products, a standard and a deluxe version of a luggage carrier. The budgeted statement of comprehensive income is as follows: Required: 1.Compute the breakeven point in units, assuming that the planned revenue mix is ma
> (M. Rajan, adapted) Tocchet Company manufactures C B1, a citizens’ band radio that is sold mainly to truck drivers. The company’s plant in Camden has an annual capacity of 75,000 units. Tocchet currently sells 60,000 units at a selling price of $148. It
> Dawmart Corp., an international retail giant, is considering implementing a new business-to-business (B2B) information system for processing purchase orders. The current system costs Dawmart $1,000,000 per month and $40 per order. Dawmart has two options
> Lawnox, a manufacturer of lawn mowers, predicts that it will purchase 240,000 spark plugs next year. Lawnox estimates that 20,000 spark plugs will be required each month. A supplier quotes a price of $9 per spark plug. The supplier also offers a special
> Foxwood Company is a metal- and wood-cutting manufacturer selling products to the home construction market. Consider the following data for the year 2016: Required: 1. Prepare a statement of comprehensive income with a separate supporting schedule of c
> The following items (in millions) pertain to the Chan Corporation: Chan’s manufacturing cost system uses a three-part classification of manufacturing costs. There are two prime costs and one conversion cost: direct materials, direct
> 1. How would the answer to the preceding problem be modified if you were asked for a schedule of cost of goods manufactured and sold instead of a schedule of cost of goods manufactured? Be specific. 2. Would the sales manager’s salary (included in market
> The Powell Corporation has the following account balances (in millions): Required: Prepare an statement of comprehensive income and a supporting schedule of cost of goods manufactured for the year ended December 31, 2016. For Specific Date Fo
> Hofstra Plastics Inc.’s selected data for the month of August 2016 are presented below (in millions): Work-in-process inventory, August 1, 2016 ……………………………………$ 200 Direct materials inventory, August 1, 2016 ………………………………………..90 Direct materials purchased
> The following partial information is available. Complete the table by filling in all the blanks. Each case is independent. Contributing Margin Percentage Variable Operating Income Fixed Total Case Revenues Costs Costs Costs $ 4,000 $ 500 $. $1,460 %
> Consider the following account balances (in thousands) for the Canseco Company: Required: 1. Prepare a schedule of cost of goods manufactured for 2016. 2. Revenues in 2016 were $300 million. Prepare the 2016 statement of comprehensive income. Begin
> Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2017 as in 2016. Fixed manufacturing costs and marketing, distribution, and customer-service costs in 2017 are also predicted to be the same as in 2
> Soo Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2016. Costs incurred for 2016 are as follows (V stands for variable; F stands for fixed): Direct materials used costs ……
> Gwen Benson, Ian Blacklaw, and Eduardo Cabrera are sales representatives for Electronic Manufacturing Inc. (EMI). EMI specializes in low-volume production orders for the research groups of major companies. Each sales representative receives a base salary
> Len Lippart is a line worker in the assembly department of Maxart Manufacturing. He normally earns $12 per hour, but gets time and a half ($18 per hour) for overtime, over 40 hours per week. He earns double time if he works holidays even if he has not wo
> Easecom Company is a manufacturer of videoconferencing products. Regular units are manufactured to meet marketing projections, and specialized units are made after an order is received. Maintaining the video-conferencing equipment is an important area of
> Two products are manufactured by the Fraser Corporation: Widgets and Thingamajigs. In July 2015, the controller of Fraser, upon instructions from senior management, had the budgeting department gather the following data in order to prepare budgets for 20
> The University of Toronto Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the Press were an outside business enterprise. The Press also publishes and maintains a stock of boo
> Anderson Construction assembles residential homes. It uses a job-costing system with two direct cost categories (direct materials and direct labour) and one indirect cost pool (assembly support). The allocation base for assembly support costs is direct l
> Michael and Gabitel (MG) is a law firm that specializes in writing wills. Its job-costing system has one direct cost pool, professional labour, and a single indirect cost pool that includes all supporting costs of running the law office. The support cost
> What is the benefit of creating more than one manufacturing overhead cost pool?
> Chirac & Partners is a Quebec based public accounting partnership specializing in audit services. Its job-costing system has a single direct cost category (professional labour) and a single indirect cost pool (audit support, which contains all the costs
> Destin Products uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labour costs.
> In each of the following situations, determine whether job costing or process costing would be more appropriate. a. A public acccounting firm b. An oil refinery c. A custom furniture manufacturer d. A tire manufacturer e. A textbook publisher f. A pharma
> Angela King is the Las Vegas promoter for professional fighter Randy Couture. King is promoting a new Octagon world championship fight for Couture. The key area of uncertainty is the size of the cable pay-per-view TV market. King will pay Couture a fixed
> Clarke Ltd. is a manufacturer of promotional items. The majority of its revenues is from the production of promotional pens. Clarke imports these pens from China and then imprints them with corporate names. These pens are then distributed to customers, s
> Edible Bouquets (EB) makes and sells flower bouquets. EB is considering opening a new store in the local mall. The mall has several empty shops and EB is unsure of the demand for its product. The mall has offered EB two alternative rental agreements. The
> Zyrcon Ltd. is a computer games manufacturer. It currently has two games on the market: Alien Predators and Vegas Pokermatch. Data regarding the two products are as follows: The fixed costs of Zyrcon are $18,750,000, and the current sales mix is 40% Al
> The Sunrise Group (SG) is an environmentally conscious organization that buys land with the objective of preserving the natural environment. SG receives private contributions and takes no assistance from the government. Fixed costs of operating the organ
> Thomas Inc. is considering three countries for the sole manufacturing site of its new product: India, China, and Canada. The product will be sold to retail outlets in Canada at $47.50 per unit. These retail outlets add their own markup when selling to fi
> The list of representative cost drivers in the right column of this table are randomized with respect to the list of functions in the left column. That is, they do not match. Function ………………………………………………………..Representative Cost Driver 1. Accounting ……………
> Describe sensitivity analysis. How has spreadsheet software affected its use?
> Niagara Inc. manufactures apple products such as apple jelly and applesauce. It makes applesauce by blending Tolman, Golden Delicious, and Ribston apples. Budgeted costs to produce 100,000 kilograms of applesauce in November 2015 are as follows: 45,000
> The Energy Products Company produces a gasoline additive, Gas Gain, that increases engine efficiency and improves gasoline mileage. The actual and budgeted quantities (in litres) of materials required to produce Gas Gain and the budgeted prices of materi
> Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report: Required: What are the rate, efficiency, and sales-volume variances for direct materials and direct manufacturing l
> Prepare journal entries and post them to T-accounts for all transactions in Exercise 7-25, including requirement 2. Summarize how these journal entries differ from normal costing entries. Data from Exercise 7-25: Yates Inc. is a p rivately held furnitu
> Yates Inc. is a privately held furniture manufacturer. For August 2015, Yates had the following standards for one of its products, a wicker chair: Standards per Chair Direct materials ………………………2 square metres of input at $5 per square metre Direct manu
> Katharine Stanley is the owner of Better Bikes, a company that produces high-quality mountain bicycles. Better Bikes participates in a supply chain that consists of suppliers, manufacturers, distributors, and elite bicycle shops. For several years Better
> The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the calculations on the company’s variance analysis calculations for the year ended December 31, 2015. The fo
> Trustex Printers Inc. produces luxury chequebooks with three cheques and stubs per page. Each chequebook is designed for an individual customer and is ordered through the customer’s bank. The company’s operating budget for September 2015 included these d
> Sol Electronics, a fast-growing electronic device producer, uses a standard costing system, with standards set at the beginning of each year. In the second quarter of 2015, Sol faced two challenges: it had to negotiate and sign a new short-term labour ag
> Marron, Inc. produces the basic fillings used in many popular frozen desserts and treats—vanilla and chocolate ice creams, puddings, meringues, and fudge. Marron uses standard costing and carries over no inventory from one month to the
> Why do management accountants need to understand financial accounting?
> Tilda Manufacturing is a manufacturer of electronics components. Income data for one of the products (XT-107) for the month just ended are as follows: Tilda has capacity to produce 250,000 units each month, and its current average sales level is 175,00
> A home pregnancy test is not always accurate. Suppose the probability is 0.015 that the test indicates that a woman is pregnant when she actually is not, and the probability is 0.025 that the test indicates that a woman is not pregnant when she really is
> The following exercises use the Purchase Orders database. Use MATCH and/or INDEX functions to find the following:a. The row numbers corresponding to the first and last instance of item number 1369 in column C (be sure column C is sorted by order number).
> Using the data in the Excel file Consumer Transportation Survey, develop a contingency table for Gender and Vehicle Driven; then convert this table into probabilities.a. What is the probability that respondent is female?b. What is the probability that a
> Use the Civilian Labor Force data in the Excel file Census Education Data to find the following:a. P(unemployed and advanced degree)b. P(unemployed ∙ advanced degree)c. P(not a high school grad ∙ unemployed)d. Are the events “unemployed” and “at least a
> The Excel file Concert Sales provides data on sales dollars and the number of radio, TV, and newspaper ads promoting the concerts for a group of cities. Develop simple linear regression models for predicting sales as a function of the number of each type
> A marketing researcher surveyed 92 individuals, asking them if they liked a new product concept or not. The results are shown below:Convert the data into percentages. Then construct a chart of the counts and a chart of the percentages. Discuss what each
> Use Analytic Solver Platform to fit a distribution to the data in the Excel file Computer Repair Times. Try the three different statistical measures for evaluating goodness of fit and see if they result in different best-fitting distributions
> The Excel file Credit Approval Decisions provides information on credit history for a sample of banking customers. Use regression analysis to identify the best model for predicting the credit score as a function of the other numerical variables. For the
> A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key informat
> The Excel file Cereal Data provides a variety of nutritional information about 67 cereals and their shelf location in a supermarket. Use regression analysis to find the best model that explains the relationship between calories and the other variables. I
> Open the Excel file Store and Regional Sales database.a. Sort the data by units sold, high to lowb. Sort the units sold using an icon set, where green corresponds to high sales levels, yellow to medium sales, and red to low sales. The sort should show al
> Using the data in the Excel file Ohio Education Performance, test the hypotheses that the mean difference in writing and reading scores is zero and that the mean difference in math and science scores is zero. Use the paired-sample procedure
> Suggest some metrics that a hotel might want to collect about their guests. How might these metrics be used with business analytics to support decisions at the hotel?
> Refer to the card scenario described in Problem 2.a. Let A be the event “total card value is odd.” Find P(A) and P(Ac).b. What is the probability that the sum of the two cards will be more than 14?In Problem 2Consider the experiment of drawing two cards
> A market research company surveyed consumers to determine their ranked preferences of energy drinks among the brands Monster, Red Bull, and Rockstar.a. What are the outcomes of this experiment for one respondent?b. What is the probability that one respon
> Three coins are dropped on a table.a. List all possible outcomes in the sample space.b. Find the probability associated with each outcome
> In an example in Chapter 3, we developed the following cross-tabulation of sales transaction data:a. Find the marginal probabilities that a sale originated in each of the four regions and the marginal probability of each type of sale (book or DVD).b. Fin
> For the data in the Excel file Graduate School Survey, perform a chi-square test for independence to determine if plans to attend graduate school are independent of gender
> Using the data in the Excel file Home Market Value, develop a multiple linear regression model for estimating the market value as a function of both the age and size of the house. Predict the value of a house that is 30 years old and has 1,800 square fee
> A major application of analytics in marketing is determining the attrition of customers. Suppose that the probability of a long-distance carrier’s customer leaving for another carrier from one month to the next is 0.12. What distribution models the reten
> For the garage-band model in Problem 7 of Chapter 11, suppose that the expected crowd is normally distributed with a mean of 3,000 and standard deviation of 200. Use the NORM.INV function and a one-way data table to conduct a Monte Carlo simulation with
> Construct the probability distribution for the value of a 2-card hand dealt from a standard deck of 52 cards (all face cards have a value of 10 and an ace has a value of 11).a. What is the probability of being dealt 21?b. What is the probability of being
> The weekly demand of a slow-moving product has the following probability mass function:Demand, x _________Probability, f(x)0 ……………………………………………………… 0.21 ………………………………………………………. 0.42 ………………………………………………………. 0.33 ………………………………………………………. 0.14 or more …………………………
> A consumer products company found that 48% of successful products also received favorable results from test market research, whereas 12% had unfavorable results but nevertheless were successful. They also found that 28% of unsuccessful products had unfav
> Consider the experiment of drawing two cards without replacement from a deck consisting of only the ace through 10 of a single suit (e.g., only hearts).a. Describe the outcomes of this experiment. List the elements of the sample space.b. Define the event
> A popular soft drink is sold in 2-liter (2,000-milliliter) bottles. Because of variation in the filling process, bottles have a mean of 2,000 milliliters and a standard deviation of 18, normally distributed.a. If the manufacturer samples 100 bottles, wha
> A Canadian business school summarized the gender and residency of its incoming class as follows:a. Construct the joint probability table.b. Calculate the marginal probabilities.c. What is the probability that a female student is from outside Canada or th
> Row 26 of the Excel file Census Education Data gives the number of employed persons having a specific educational level.a. Find the probability that an employed person has attained each of the educational levels listed in the data.b. Suppose that A is th
> A survey of 200 college graduates who have been working for at least 3 years found that 90 owned only mutual funds, 20 owned only stocks, and 70 owned both.a. What is the probability that an individual owns a stock? A mutual fund?b. What is the probabili
> Use Analytic Solver Platform to fit the hurricane data in Problem 32 to a discrete distribution? Does the Poisson distribution give the best fit?In Problem 32The number and frequency of Atlantic hurricanes annually from 1940 through 2012 is shown here.Nu
> In determining automobile mileage ratings, it was found that the mpg in the city for a certain model is normally distributed, with a mean of 30 mpg and a standard deviation of 1.0 mpg. Suppose that the car manufacturer samples 5 cars from its assembly li
> Lauren drinks a variety of soft drinks. Over the past month, she has had 15 diet colas, 4 cans of lemonade, and 6 cans of root beer in no particular order or pattern.a. Given this history, what is the probability that her next drink will be a diet cola?
> The worksheet Data in the Excel file Airport Service Times lists a large sample of the times in seconds to process customers at a ticket counter. The second worksheet shows a frequency distribution and histogram of the data.a. Summarize the data using th
> Use the Descriptive Statistics tool to summarize the percent gross profit, gross sales, and gross profit in the Excel file Sales Data
> Example 1.8 in Chapter 1 provided data from an experiment to identify the relationship between sales and pricing, coupon, and advertising strategies. Enter the data into a spreadsheet and implement the model in the example within your spreadsheet to esti
> For the market share model in Problem 5 of Chapter 11, suppose that the estimate of the percentage of new purchasers who will ultimately try the brand is uncertain and assumed to be normally distributed with a mean of 35% and a standard deviation of 4%.
> Compute descriptive statistics for liberal arts colleges and research universities in the Excel file Colleges and Universities. Compare the two types of colleges. What can you conclude?
> A deep-foundation engineering contractor has bid on a foundation system for a new building housing the world headquarters for a Fortune 500 company. A part of the project consists of installing 311 auger cast piles. The contractor was given bid informati
> A Midwest pharmaceutical company manufactures individual syringes with a self-contained, single dose of an injectable drug. In the manufacturing process, sterile liquid drug is poured into glass syringes and sealed with a rubber stopper. The remaining st
> A producer of computer-aided design software for the aerospace industry receives numerous calls for technical support. Tracking software is used to monitor response and resolution times. In addition, the company surveys customers who request support usin
> Rosenberg Land Development (RLD) is a developer of condominium properties in the Southwest United States. RLD has recently acquired a 40.625-acre site outside Phoenix, Arizona. Zoning restrictions allow at most 8 units per acre. Three types of condominiu
> Find the mean and variance of a deck of 52 cards, where an ace is counted as 11 and a picture card as 10. Construct a frequency distribution and histogram of the card values. Shuffle the deck and deal two samples of 20 cards (starting with a full deck ea
> Use the Manufacturing Measurements data to compute sample averages, assuming that each row in the data file represents a sample from the manufacturing process. Plot the sample averages on a line chart, add the control limits, and interpret your results
> Repeat the sampling experiment in Example 6.3 for sample sizes 50, 100, 250, and 500. Compare your results to the example and use the empirical rules to analyze the sampling error. For each sample, also find the standard error of the mean using formula (
> Compute the z-scores for the data in the Excel file Airport Service Times. How many observations fall farther than three standard deviations from the mean? Would you consider these as outliers? Why or why not?
> The Excel file Auto Survey contains a sample of data about vehicles owned, whether they were purchased new or used, and other types of data. Use the Descriptive Statistics tool to summarize the numerical data, find the correlations among each of the nume
> A national homebuilder builds single-family homes and condominium-style townhouses. The Excel file House Sales provides information on the selling price, lot cost, type of home, and region of the country (M = Midwest, S = South) for closings during 1 mon
> PLE has developed a prototype for a new snow blower for the consumer market. This can exploit the company’s expertise in small-gasoline-engine technology and also balance seasonal demand cycles in the North American and European markets to provide additi
> In the Excel file Call Center Data, how strongly is length of service correlated with starting age?
> For the Excel file Credit Risk Data, compute the correlation between age and months employed, age and combined checking and savings account balance, and the number of months as a customer and amount of money in the bank. Interpret your results
> Example 1.4 in Chapter 1 described a scenario for new product sales that can be characterized by a formula called a Gompertz curve: S = aebect. Develop a spreadsheet for calculating sales using this formula for t = 0 to 160 in increments of 10 when a = 1
> The actual delivery time from Giodanni’s Pizza is exponentially distributed with a mean of 20 minutes.a. What is the probability that the delivery time will exceed 30 minutes?b. What proportion of deliveries will be completed within 20 minutes?
