1. For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let
d = annual demand for a product in units
p = price per unit
Assume that firm accepts the following pricedemand relationship as being realistic:
d = 800 – 10p
where p must be between $ 20 and $70.
a. How many units can the firm sell at the $ 20 perunit price? At the $ 70 perunit price? b. Show the mathematical model for the total revenue (TR), which is the annual demand multiplied by the unit price. c. Based on other considerations, the firm’s management will only consider price alternative that will maximize the total revenue. d. What are the expected annual demand and the total revenue according to your recommended price? Information to solution:
d=80010pTR = (800 10p)p
[pic][pic]
2. The O’Neill Shoe Manufacturing Company will produce a special –style shoe if the order size is large enough to provide a reasonable profit. For each specialstyle order, the company incurs a fixed cost of $1000 for the production setup. The variable cost is $ 30 per pair, and each pair sells for $ 40. a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing x pairs of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. c. What is the breakeven point?
Information to solution:
FC = $1000VC per pair = $ 30
C = FC + VC = 1000 + 30x
R= 40x
П = TR –TC = 40x – (1000 + 30x) = 10x – 1000
[pic]
3. Micro media offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting....
...ACL 9
Tutorial1Solution
COMMANDS:
ANALYZE > TOTAL
ANALYZE > PROFILE
ANALYZE > STATISTICS
SAMPLING > SAMPLE
ANALYZE > SEQUENCE
DATA > SORT
ANALYZE > DUPLICATES
ANALYZE > GAPS
AP_TRANS
1. Using the TOTAL command, develop a hash control total and an amount control total for APTRANS.
What recommendation would you make to develop a field for hash control total?
Answer:
TOTAL command: Invoice Amount plus one of the other number fields.
The total of Invoice_Amount is: $278,641.33
The total of Quantity is: 37,107
The total of Unit_Cost is: 1,522.29
I recommend changing Invoice Number to a number field (vs. string) if possible.
2. Run PROFILE on the file, Invoice Amount.
Can you determine if there are any negative transactions? Explain.
Answer:
There are none because total = absolute total ($278,641.33)
3. Run STATISTICS on each of the four available fields with the Std Dev box checked.
Describe your audit direction to specific invoices based on the results of STATISTICS.
Answer:
The statistics on Invoice_Amount reveal the following data of interest to the auditor:
As of: 08/25/2013 12:23:54
Produced with ACL by: Lehigh University
Command: STATISTICS ON Invoice_Amount STD TO SCREEN NUMBER 5
Table: Ap_Trans.
Invoice Amount
Number
Total
Average
Range

56,752.32

Positive
102
278,641.33
2,731.78
Negative
0...
...Tutorial 07: Solutions
Part A:
For all your answers, please remember to do the following:
1. Draw curves
2. State the distribution
3. Define the variable
A7.1
An automatic machine in a manufacturing process is operating properly if the
lengths of an important subcomponent are normally distributed, with mean µ = 117
cm and standard deviation σ = 2.1 cm.
If the machine is operating correctly:
Let X = variable length of subcomponent (cm).
Then if the machine is operating correctly, X ~ N (117, 2.12 ) .
(i)
find the probability that one randomly selected unit has a length greater
than 120 cm;
X −µ
120 − 117
) = P( Z > 1.4286) ≈ P( Z > 1.43)
σ
2.1
= 1 − P( Z < 1.43) = 1 − 0.9236 = 0.0764
X:
P( X > 120) = P(
>
Alternative solution: P ( Z > 1.43) = P ( Z < −1.43) = 0.0764
(ii)
Z:
117
120
0
1.43
find the probability that if three units are randomly selected, their mean
length exceeds 120 cm;
Let
X = mean length (cm), then
2 . 12
X ~ N 117 ,
3
P(X > 120) = P(
X − µ X 120 − 117
120 − 117
>
) = P(Z >
) = P(Z > 2.4744)
σ
2.1
1.2124
n
3
X:
117
120
Z:
0
2.474
Using symmetry of curve, and then tables we find
P ( Z > 2.47) = P ( Z < −2.47) = 0.0068 ≈ 0.007
1
(iii)
explain the differences between parts (i) and (ii).
In (i) we are considering the probability that a single item is longer than 120cm.
The answer is about 0.076.
In (ii) we are considering...
...ACCY111
TUTORIAL1Solutions
John Wiley & Sons Australia, Ltd 2012
Page 1 of 19
CHAPTER 1
DECISION MAKING AND THE ROLE OF THE ACCOUNTANT
Exercise 1.1
Information for decisions
ASHLEY BUTLER
Ashley Butler, as the accounts supervisor, should obtain information about the account applicant
to ascertain whether or not the person will be able to pay their account. In deciding to open an
account, the following would be required:
Information requested
1. Customer’s business name, address and
contact details
Type of information (economic / other)
Other – details ensure business exists and
invoices can be posted to the correct address
2. Years customer has been in this business
Other – establishes track record and history
3. Total assets and estimates of values of
assets in the business
Economic – establishes size of asset base of
business
4. Total liabilities (total commitments)
Economic – establishes how much the
business currently owes others to assess the
extent of claims against assets
5. Profits of the business for the most recent
and previous periods
Economic – used to assess whether the
business generates sufficient profits to cover
the payments that will have to be made of
their account
6. Credit references
Other – enables Ashley to follow up with
other businesses the customer already has
accounts with, to assess whether the
customer has paid their accounts in time and
in...
...Universiti Tunku Abdul Rahman
Bachelor of Commerce (Hons) Accounting
Bachelor of Business Administration (Hons) Banking & Finance
Bachelor of Finance (Hons)
Year 1 Semester 1
Faculty of Business and Finance
Department of Commerce & Accountancy
UBAF1013 Financial Accounting Framework I
Tutorial1
(1a)
Which of the following statements about users of accounting information is incorrect? (Weygandt, Kimmel & Kieso, 2008, p.31)
A Management is an internal user
B Taxing authorities are external users
C Present creditors are external users
D Regulatory authorities are internal users
(1b)
Which of the following is NOT a step in the accounting process? (Weygandt, Kimmel & Kieso, 2008, p.31)
A Identification
B Verification
C Recording
D Communication
(1c)
Which of the following is not a main qualitative characteristic of information reported in financial statements in accordance with the Framework? (Carlon, Mladenovic, Loftus, Palm, Kimmel, Kieso, and Weygandt, 2009, p.61)
A Comparability
B Understandability
C Relevance
D Confidentiality
(1d)
Management accounting is mainly concerned with: (Bendrey, p.35)
A Providing financial information to managers
B Recording information for tax purposes
C Communicating financial information to shareholders
D Auditing the accounts of a company
(1e)
An audit is a : (Bendrey, p.35)
A Method of recording financial information
B Examination of the financial records of an...
...favorable , given the previous condition that the transfer pricing policy made many complaints by consumer product division , such as the cost of production inefficiencies that should be the responsibility of the milling division instead become a burden products division consumers , are also subject to deduction of 75% investment by milling division when this division does not include additional new equipment , inventory levels , and others  others . Another impact because there is no limitation will affect the performance of the two divisions in the company because there is still inequality and complaints  complaints that occur mainly the issue of cost  the cost of the underlying transfer pricing between divisions .
7.4 Aloha Products
1. Overview of Aloha Products:
Aloha Products is a United Statesbased coffeeprocessor company that has been providing nonspecialty and lowpriced coffee for over a hundred years. It purchases the raw materials or what buyers and sellers refer to as “green coffee” from brokers and trade firms then processes the coffee and sells the final product to customers. Large companies such as Nestle and P&G directly import the unprocessed or green coffee beans from coffee plantations in tropical countries such as Brazil and Colombia while companies with smaller levels of business such as such as Aloha buy the green coffee beans from brokers or trade firms. Aloha Products is managed by the owners and its headquarters is located...
...Tutorialsolutions 4
QUESTIONS
5. What is meant by a currency trading at a discount or at a premium in the forward market?
Answer: The forward market involves contracting today for the future purchase or sale of foreign
exchange. The forward price may be the same as the spot price, but usually it is higher (at a
premium) or lower (at a discount) than the spot price.
PROBLEMS
4. Restate the following one, three, and sixmonth outright forward European term bidask
quotes in forward points.
Spot
1.34311.3436
OneMonth
1.34321.3442
ThreeMonth
1.34481.3463
SixMonth
1.34881.3508
Solution:
OneMonth
0106
ThreeMonth
1727
SixMonth
5772
6. Using Exhibit 5.4, calculate the one, three, and sixmonth forward premium or discount for
the Canadian dollar versus the U.S. dollar using American term quotations.
assume each month has 30 days. What is the interpretation of your results?
Solution: The formula we want to use is:
f
= [(F($/CD)  S($/CD))/S($/CD)] x 360/N days
f 30 = [(.9628  .9629)/.9629] x 360/30 = .12%
f 90 = [(.9624  .9629)/.9629] x 360/90 = .21%
f 180 = [(.9614  .9629)/.9629] x 360/180 = .31%
For simplicity,
The pattern of forward premiums indicates that the Canadian dollar is trading at a discount
versus the U.S. dollar. That is, it becomes less expensive to buy a Canadian dollar forward.
Also, the discount increases in magnitude over time.
10. Doug Bernard specializes in...
...TUTORIAL 10 (27 – 31 OCTOBER)
SOLUTION GUIDE
Question 1
Henry, Carla and Fred are housepainters. Henry and Carla can paint 100 square metres per hour
using a standard paintbrush, while Fred can paint 80 square metres per hour. Any of the three can
paint 200 square metres per hour using a roller.
(i) If Henry, Carla and Fred have only paintbrushes at their disposal, what is the average productivity
(in terms of square metres per painter hour) for the three painters taken as a team? Assume the
three painters always work the same number of hours.
As a team the three painters can paint 280 square metres in 3 painter hours (note this equates to
one hour of time, but there are 3 painters). So average productivity is just total output divided by
the total labour input; 280/3 = 93.3 square metres per painterhour.
(ii) Repeat part (i) for the cases in which the team has one, two, three and four rollers available. Are
there diminishing returns to capital?
The first roller should be given to Fred, as it increases his production by the largest amount. The
second and third rollers should be given to Harrison and Carla (in either order). There is no one to
use the fourth roller. With this information we can calculate total output for the team per hour
and total output per painterhour as follows:
No. of rollers
Output by team
0
1
2
3
4
280
400
500
600
600
Output per
painterhour
280/3 = 93.3
400/3 = 133.3
500/3 = 167.7
600/3...