This document provides model answers for the Business Statistics Third Level Series 2 2002 exam. It includes the exam questions, model answers summarizing the key points expected in responses, and some additional helpful hints. The model answers provide summaries of the main statistical calculations and conclusions expected for each multi-part question. They also include comments on graphs and fully worked examples where applicable. The document is intended to help teachers and candidates understand the standard expected and as an aid for exam preparation and success.
This document provides model answers and guidance for Cost Accounting Level 3 exam questions. It includes:
1) The exam questions reproduced from the paper.
2) Model answers summarizing the main points expected in responses and including worked examples where applicable.
3) Helpful hints on individual questions and exam technique.
The model answers are designed to demonstrate a Distinction grade standard and provide teachers and candidates an example of the level required to achieve a high score. While alternative valid answers are accepted, the models aim to offer additional information to help prepare for the exam.
The document provides guidance on how to use the LCCI International Qualifications Model Answer booklet, which contains questions from past exam papers, model answers summarizing the key points expected in responses, and additional helpful hints. The model answers aim to demonstrate the standard required to achieve a Distinction grade and accept that other valid answers may exist.
The document provides model answers and guidance for the LCCI International Qualifications Cost Accounting Level 3 exam, including reproducing exam questions, summarizing expected answers, and providing additional helpful hints. It is intended as a teaching tool to help teachers, candidates, and centers prepare for the LCCI exam and achieve a distinction grade. The general standard of the model answers aims to achieve a distinction level of response.
At the break-even point:
Sales revenue = £200,000
Fixed costs = £80,000
Break-even point formula: Fixed costs / (Sales price - Variable cost per unit)
So: £80,000 / (1 - Variable cost per £1 of sales)
Variable cost per £1 of sales = 1 - £80,000/£200,000 = 0.6
Variable cost at break-even point = £200,000 x 0.6 = £120,000
At current sales level of £400,000:
Variable cost = £400,000 x 0.6 = £240,000
(b) Calculate the contribution at the break-even
The production budget shows the number of units to be manufactured each month based on 60% of next month's sales and 40% of the current month's sales. The material purchase budget shows the amount spent on material purchases each month based on the prior month's production.
(c) Cash budget showing receipts, payments and closing bank balance.
(12 marks)
(d) Explain two uses of cash budgets.
(4 marks)
(Total 21 marks)
x = 522.08, s2x = 5,333.33
y = 537.08, s2y = 6,615.17
t = (522.08 - 537.08) / √((5,333.33/12) + (6,615.17/12)) = -0.82
Conclusion: There is insufficient evidence to reject the null hypothesis at the 5% significance level.
There is no difference in the car rentals paid in country X and country Y.
(c) The sampling distribution of the mean is the theoretical distribution of sample means that would be
obtained by taking all possible samples of a given size from a population. It is
1. Thackley Ltd's current assets and net current assets have significantly increased from 2005 to 2006, while fixed assets have decreased slightly.
2. Retained earnings have nearly tripled from 2005 to 2006, indicating strong profitability.
3. Ordinary share capital and share premium have increased to help finance the growth in assets and retained earnings.
4. Creditors due after one year (debentures) have decreased slightly from 2005 to 2006.
To analyze the changes, calculate key ratios such as current ratio, acid test ratio, gearing, return on capital employed and earnings per share for 2005 and 2006. This will
Here are the calculations for Suggestion 2:
Total contribution required = £24,000 + £301,000 = £325,000
Number of sales units = £325,000/£20 = 16,250 units
(9 marks)
(Total 20 marks)
3017/4/11/MA Page 8 of 15
QUESTION 4
A company manufactures a single product. The standard cost card for the product is:
Material: 2kg @ £3 per kg
Direct Labour: 1 hour @ £6 per hour
Variable Overheads: £2 per unit
Fixed Overheads: £12,000 per month
The standard cost per unit is
This document provides model answers and guidance for Cost Accounting Level 3 exam questions. It includes:
1) The exam questions reproduced from the paper.
2) Model answers summarizing the main points expected in responses and including worked examples where applicable.
3) Helpful hints on individual questions and exam technique.
The model answers are designed to demonstrate a Distinction grade standard and provide teachers and candidates an example of the level required to achieve a high score. While alternative valid answers are accepted, the models aim to offer additional information to help prepare for the exam.
The document provides guidance on how to use the LCCI International Qualifications Model Answer booklet, which contains questions from past exam papers, model answers summarizing the key points expected in responses, and additional helpful hints. The model answers aim to demonstrate the standard required to achieve a Distinction grade and accept that other valid answers may exist.
The document provides model answers and guidance for the LCCI International Qualifications Cost Accounting Level 3 exam, including reproducing exam questions, summarizing expected answers, and providing additional helpful hints. It is intended as a teaching tool to help teachers, candidates, and centers prepare for the LCCI exam and achieve a distinction grade. The general standard of the model answers aims to achieve a distinction level of response.
At the break-even point:
Sales revenue = £200,000
Fixed costs = £80,000
Break-even point formula: Fixed costs / (Sales price - Variable cost per unit)
So: £80,000 / (1 - Variable cost per £1 of sales)
Variable cost per £1 of sales = 1 - £80,000/£200,000 = 0.6
Variable cost at break-even point = £200,000 x 0.6 = £120,000
At current sales level of £400,000:
Variable cost = £400,000 x 0.6 = £240,000
(b) Calculate the contribution at the break-even
The production budget shows the number of units to be manufactured each month based on 60% of next month's sales and 40% of the current month's sales. The material purchase budget shows the amount spent on material purchases each month based on the prior month's production.
(c) Cash budget showing receipts, payments and closing bank balance.
(12 marks)
(d) Explain two uses of cash budgets.
(4 marks)
(Total 21 marks)
x = 522.08, s2x = 5,333.33
y = 537.08, s2y = 6,615.17
t = (522.08 - 537.08) / √((5,333.33/12) + (6,615.17/12)) = -0.82
Conclusion: There is insufficient evidence to reject the null hypothesis at the 5% significance level.
There is no difference in the car rentals paid in country X and country Y.
(c) The sampling distribution of the mean is the theoretical distribution of sample means that would be
obtained by taking all possible samples of a given size from a population. It is
1. Thackley Ltd's current assets and net current assets have significantly increased from 2005 to 2006, while fixed assets have decreased slightly.
2. Retained earnings have nearly tripled from 2005 to 2006, indicating strong profitability.
3. Ordinary share capital and share premium have increased to help finance the growth in assets and retained earnings.
4. Creditors due after one year (debentures) have decreased slightly from 2005 to 2006.
To analyze the changes, calculate key ratios such as current ratio, acid test ratio, gearing, return on capital employed and earnings per share for 2005 and 2006. This will
Here are the calculations for Suggestion 2:
Total contribution required = £24,000 + £301,000 = £325,000
Number of sales units = £325,000/£20 = 16,250 units
(9 marks)
(Total 20 marks)
3017/4/11/MA Page 8 of 15
QUESTION 4
A company manufactures a single product. The standard cost card for the product is:
Material: 2kg @ £3 per kg
Direct Labour: 1 hour @ £6 per hour
Variable Overheads: £2 per unit
Fixed Overheads: £12,000 per month
The standard cost per unit is
The document provides model answers for a cost accounting exam, including fully worked examples and summaries of the main points expected for each question. It also includes helpful hints for candidates on certain questions or exam technique. The model answers are intended to help teachers and candidates understand the standard required and as an aid for exam success.
Here are the key points from the information provided:
- Fixed assets have decreased due to depreciation exceeding additions
- Investments have increased
- Stock, debtors and bank have all increased significantly indicating higher activity levels
- Creditors have increased in line with higher activity
- Net current assets have increased substantially
- Retained earnings have increased substantially, indicating good profitability
- Share capital and share premium have increased due to a rights issue
So in summary, the company appears to be growing its operations and investments, experiencing higher activity levels and improving profitability based on the increase in retained earnings. The rights issue also indicates they are financing this growth internally for now. Overall the financial position of the company appears stronger based
This document provides information about cost accounting for a transport business.
[1] It details the vehicle types, costs, and operating assumptions for Carryit Farr transport business. This includes vehicle purchase prices, operating costs, fuel consumption, and depreciation calculations.
[2] It also provides the office costs for the business including rent, insurance, salaries, and how these costs are allocated to vehicle types.
[3] A sample cost calculation is provided to determine the vehicle and office cost absorption rates per kilometer for each vehicle type. These rates are then used to calculate the minimum time and costs to deliver a job using each vehicle type.
The least squares regression line is:
y = 4.16x - 881.5
(b) Using the regression line, for a house value of £250,000:
y = 4.16x - 881.5
= 4.16(250) - 881.5
= 1040 - 881.5
= £2,158.5
3009/3/10MA Page 6 of 20
QUESTION 2 CONTINUED
(c) The coefficient of determination (R2) measures the proportion of variation in the dependent variable
(annual expenditure on repairs) that is explained by the independent variable (value of house).
The R2
Passport to success solutions level 1 book keepingthuhakt
Here are the journal entries for the transactions:
Purchases
20X7 £
October 07 Cash 179
Motor Vehicle
20X7 £
October 21 Bank 1 990
9
Question 6
(a) Bought goods for resale on credit from J Singh:
Debit - Purchases
Credit - J Singh
(b) Sold goods to A Patel on credit:
Debit - A Patel
Credit - Sales
(c) Paid J Singh by cheque:
Debit - J Singh
Credit - Bank
(d) A Patel returned some goods:
Debit
Melford Hospital's pediatrics unit operated at 100% capacity for 90 days last year, exceeding their maximum capacity by 20 patients. Using CVP analysis, the hospital determined adding 20 beds would allow them to meet increased demand and breakeven. However, adding beds only increased costs and decreased profits. Instead, the hospital recommends renting the additional beds to an outpatient surgical group, sharing costs. Estimating the surgical group will use the beds for 4,200 patient days, annual profit is projected to increase to $786,333 with 26,000 total patient days.
05210202 Fluid Mechanics And Hydraulic Machineryguestd436758
The document is a past exam paper for a Chemical Engineering Plant Design and Economics course. It contains 8 multi-part questions testing various concepts related to plant design, economics, and capital investment analysis. Specifically, it examines topics such as batch vs continuous operation, methods for estimating capital investment, cost analysis, depreciation methods, taxation, and optimization of plant design parameters. Students were required to answer any 5 of the 8 questions in the 3 hour exam.
The document summarizes a case study analyzing capacity issues and profitability opportunities at Melford Hospital's pediatric unit, Happy Times Pediatrics. A cost-volume-profit analysis was conducted to determine the breakeven point for 60, 70, and 80 beds. Adding 20 more beds could decrease profits linearly by around $30,000 per bed. To maximize profits, the hospital decided to rent the additional 20 beds to an outpatient pediatric surgery group on an as-needed basis. This is projected to increase annual profits by $786,333 by utilizing the beds more efficiently.
The document summarizes the results of a bond portfolio management project. It includes:
1) Dirty prices for 18 bonds and the system of equations used to calculate zero-coupon prices.
2) The bond pricing formula, objective function to minimize errors between model and actual prices, and code to calculate coefficients for the spot rate curve.
3) A plot comparing the fitted and zero-coupon spot rate curves.
4) Formulations for cash matching by solving systems of equations to determine bond amounts that match a given cash flow liability profile over multiple periods.
5) The solution obtained for part A of the cash matching problem and the resulting cost.
This document discusses interest rate and economic equivalence concepts. It covers types of interest including simple and compound interest. It also discusses using present/future value factors to solve for single and uneven payment series. Examples are provided to illustrate calculating future or present value of lump sums, annuities, and other cash flows using interest rate conversion factors.
This document contains solutions to questions on Advance Financial Accounting & Reporting from Takshila Learning Pvt. Ltd. The questions cover various topics like value in use, fair value of plan assets, segment reporting, business combinations, consolidated financial statements, and goodwill calculation. The solutions provide detailed workings and journal entries for the questions.
YCL's FROI Approach for valuing the cost savings from support for troubled fa...YorkConsultingLLP
The document provides cost and impact data from several family support pathfinder programs across 7 areas. It includes:
1) Total expenditure for each area's program ranging from £779,647 to £2,550,000.
2) Estimated hours of support provided by various professionals and associated costs under optimistic, base, and pessimistic scenarios.
3) Estimated number of families supported in each area and cost per family under different scenarios.
4) Projected cost savings from improved outcomes in areas like truancy, unemployment, and crime. Total one-year public purse savings are estimated at £8.4 million.
5) Summary of projected cost savings and returns on
1. Canadian demand for gasoline may be less price sensitive than US demand, as Canadians have fewer mass transit options in rural areas compared to more urban areas in the US.
2. Calculations are shown for price and income elasticities using percentage changes in quantity, price, and income. The price elasticity of demand is found to be -2.2.
3. Cross-price elasticity is calculated between two goods, showing them to be close substitutes. Estimates for quantity demanded given price and income changes are provided.
This document contains sales, production, materials, labor, overhead, selling and administrative expense, and cash budgets for a company across 4 quarters. It also includes income statements and balance sheets. Key details include:
- Quarterly sales revenue is projected to be $372,000 for the year.
- Required production for the year is forecasted at 16,250 units to meet sales and ending inventory targets.
- Materials, labor, overhead and other expenses are budgeted based on projected production levels.
- The cash budget tracks projected cash receipts from sales and cash disbursements for expenses.
- Income statements and balance sheets are also provided to summarize projected profitability and financial position.
The document provides information to prepare production, material consumption, and material purchase budgets for a company for the first quarter of 2009. It includes monthly sales forecasts, beginning inventory levels, material and labor requirements per unit, and actual results for quarter 1. The assistant is asked to prepare:
(1) Monthly production quantity budgets for quarter 1.
(2) Monthly material consumption quantity budgets from January to April 2009.
(3) Material purchase quantity budgets for quarter 1.
www.onlineassignment.net is a 24*7 online portal dedicated to fulfilling students' need from across the globe. Be it assignment, project or thesis, we can provide you quality solution within the deadline set by you. All levels and from any course of study, you need not worry anymore.
Homework Help | Assignment Help | Project Help | Online Tutoring | Math Help | Programming Help | Engineering | Computer Science | AutoCad
www.onlineassignment.net
This document provides solutions to end-of-chapter problems from the 8th edition of the textbook "Engineering Economy" by Leland Blank and Anthony Tarquin. It includes solutions to over 50 problems involving time value of money calculations using factors, arithmetic gradients, geometric gradients, and determining interest rates. The solutions demonstrate applications of present worth, future worth, annual worth, payment, and rate of return formulas.
Crystal Lattice produces exercise mats and has spare annual capacity of 2,000 mats. Resteasy hotel chain placed a one-time order for 3,000 mats at $90 per mat instead of the normal $100 price. Accepting the order would earn a contribution margin of $50 per mat compared to $60 normally, for a net benefit of $70,000 after factoring in the $20,000 cost of an embossing machine needed for the order. Qualitative factors like reactions from other customers and Resteasy's potential as a long-term customer should also be considered before accepting the order.
The document discusses several operational decision making topics:
1. Opportunity costs consider the value of alternatives forgone by selecting one option over another, like outsourcing component manufacturing and using the freed up capacity.
2. Avoidable costs are expenses eliminated by outsourcing an activity, which reduces costs in decision making.
3. Fixed costs are often irrelevant in tactical decision making if infrastructure does not change, but they must be considered if capacity is limited.
This document discusses methods of financing capital budgeting projects including equity financing through the sale of stock or bonds, as well as debt financing through loans. It provides examples of calculating the costs and cash flows for projects financed through different methods. Specifically, it shows calculations for the number of shares or bonds needed to raise a target amount of capital after accounting for flotation costs. It also illustrates cash flow statements and calculations for projects comparing financing options of equity versus debt.
Optimización de recursos en la confección de overolesantonio alejo
This document describes an optimization problem involving the production of three types of overalls (work overalls, pilot overalls, competitor overalls) by a factory to maximize profits. The problem is modeled using linear programming with production quantities as decision variables and machine hours in three departments (marking, cutting, sewing) as constraints. The optimal solution is found to be producing 9 units of pilot overalls for a maximum profit of $2070. Sensitivity analysis shows the optimal solution remains unchanged within certain ranges when production or profit parameters are varied.
The document provides model answers for a cost accounting exam, including fully worked examples and summaries of the main points expected for each question. It also includes helpful hints for candidates on certain questions or exam technique. The model answers are intended to help teachers and candidates understand the standard required and as an aid for exam success.
Here are the key points from the information provided:
- Fixed assets have decreased due to depreciation exceeding additions
- Investments have increased
- Stock, debtors and bank have all increased significantly indicating higher activity levels
- Creditors have increased in line with higher activity
- Net current assets have increased substantially
- Retained earnings have increased substantially, indicating good profitability
- Share capital and share premium have increased due to a rights issue
So in summary, the company appears to be growing its operations and investments, experiencing higher activity levels and improving profitability based on the increase in retained earnings. The rights issue also indicates they are financing this growth internally for now. Overall the financial position of the company appears stronger based
This document provides information about cost accounting for a transport business.
[1] It details the vehicle types, costs, and operating assumptions for Carryit Farr transport business. This includes vehicle purchase prices, operating costs, fuel consumption, and depreciation calculations.
[2] It also provides the office costs for the business including rent, insurance, salaries, and how these costs are allocated to vehicle types.
[3] A sample cost calculation is provided to determine the vehicle and office cost absorption rates per kilometer for each vehicle type. These rates are then used to calculate the minimum time and costs to deliver a job using each vehicle type.
The least squares regression line is:
y = 4.16x - 881.5
(b) Using the regression line, for a house value of £250,000:
y = 4.16x - 881.5
= 4.16(250) - 881.5
= 1040 - 881.5
= £2,158.5
3009/3/10MA Page 6 of 20
QUESTION 2 CONTINUED
(c) The coefficient of determination (R2) measures the proportion of variation in the dependent variable
(annual expenditure on repairs) that is explained by the independent variable (value of house).
The R2
Passport to success solutions level 1 book keepingthuhakt
Here are the journal entries for the transactions:
Purchases
20X7 £
October 07 Cash 179
Motor Vehicle
20X7 £
October 21 Bank 1 990
9
Question 6
(a) Bought goods for resale on credit from J Singh:
Debit - Purchases
Credit - J Singh
(b) Sold goods to A Patel on credit:
Debit - A Patel
Credit - Sales
(c) Paid J Singh by cheque:
Debit - J Singh
Credit - Bank
(d) A Patel returned some goods:
Debit
Melford Hospital's pediatrics unit operated at 100% capacity for 90 days last year, exceeding their maximum capacity by 20 patients. Using CVP analysis, the hospital determined adding 20 beds would allow them to meet increased demand and breakeven. However, adding beds only increased costs and decreased profits. Instead, the hospital recommends renting the additional beds to an outpatient surgical group, sharing costs. Estimating the surgical group will use the beds for 4,200 patient days, annual profit is projected to increase to $786,333 with 26,000 total patient days.
05210202 Fluid Mechanics And Hydraulic Machineryguestd436758
The document is a past exam paper for a Chemical Engineering Plant Design and Economics course. It contains 8 multi-part questions testing various concepts related to plant design, economics, and capital investment analysis. Specifically, it examines topics such as batch vs continuous operation, methods for estimating capital investment, cost analysis, depreciation methods, taxation, and optimization of plant design parameters. Students were required to answer any 5 of the 8 questions in the 3 hour exam.
The document summarizes a case study analyzing capacity issues and profitability opportunities at Melford Hospital's pediatric unit, Happy Times Pediatrics. A cost-volume-profit analysis was conducted to determine the breakeven point for 60, 70, and 80 beds. Adding 20 more beds could decrease profits linearly by around $30,000 per bed. To maximize profits, the hospital decided to rent the additional 20 beds to an outpatient pediatric surgery group on an as-needed basis. This is projected to increase annual profits by $786,333 by utilizing the beds more efficiently.
The document summarizes the results of a bond portfolio management project. It includes:
1) Dirty prices for 18 bonds and the system of equations used to calculate zero-coupon prices.
2) The bond pricing formula, objective function to minimize errors between model and actual prices, and code to calculate coefficients for the spot rate curve.
3) A plot comparing the fitted and zero-coupon spot rate curves.
4) Formulations for cash matching by solving systems of equations to determine bond amounts that match a given cash flow liability profile over multiple periods.
5) The solution obtained for part A of the cash matching problem and the resulting cost.
This document discusses interest rate and economic equivalence concepts. It covers types of interest including simple and compound interest. It also discusses using present/future value factors to solve for single and uneven payment series. Examples are provided to illustrate calculating future or present value of lump sums, annuities, and other cash flows using interest rate conversion factors.
This document contains solutions to questions on Advance Financial Accounting & Reporting from Takshila Learning Pvt. Ltd. The questions cover various topics like value in use, fair value of plan assets, segment reporting, business combinations, consolidated financial statements, and goodwill calculation. The solutions provide detailed workings and journal entries for the questions.
YCL's FROI Approach for valuing the cost savings from support for troubled fa...YorkConsultingLLP
The document provides cost and impact data from several family support pathfinder programs across 7 areas. It includes:
1) Total expenditure for each area's program ranging from £779,647 to £2,550,000.
2) Estimated hours of support provided by various professionals and associated costs under optimistic, base, and pessimistic scenarios.
3) Estimated number of families supported in each area and cost per family under different scenarios.
4) Projected cost savings from improved outcomes in areas like truancy, unemployment, and crime. Total one-year public purse savings are estimated at £8.4 million.
5) Summary of projected cost savings and returns on
1. Canadian demand for gasoline may be less price sensitive than US demand, as Canadians have fewer mass transit options in rural areas compared to more urban areas in the US.
2. Calculations are shown for price and income elasticities using percentage changes in quantity, price, and income. The price elasticity of demand is found to be -2.2.
3. Cross-price elasticity is calculated between two goods, showing them to be close substitutes. Estimates for quantity demanded given price and income changes are provided.
This document contains sales, production, materials, labor, overhead, selling and administrative expense, and cash budgets for a company across 4 quarters. It also includes income statements and balance sheets. Key details include:
- Quarterly sales revenue is projected to be $372,000 for the year.
- Required production for the year is forecasted at 16,250 units to meet sales and ending inventory targets.
- Materials, labor, overhead and other expenses are budgeted based on projected production levels.
- The cash budget tracks projected cash receipts from sales and cash disbursements for expenses.
- Income statements and balance sheets are also provided to summarize projected profitability and financial position.
The document provides information to prepare production, material consumption, and material purchase budgets for a company for the first quarter of 2009. It includes monthly sales forecasts, beginning inventory levels, material and labor requirements per unit, and actual results for quarter 1. The assistant is asked to prepare:
(1) Monthly production quantity budgets for quarter 1.
(2) Monthly material consumption quantity budgets from January to April 2009.
(3) Material purchase quantity budgets for quarter 1.
www.onlineassignment.net is a 24*7 online portal dedicated to fulfilling students' need from across the globe. Be it assignment, project or thesis, we can provide you quality solution within the deadline set by you. All levels and from any course of study, you need not worry anymore.
Homework Help | Assignment Help | Project Help | Online Tutoring | Math Help | Programming Help | Engineering | Computer Science | AutoCad
www.onlineassignment.net
This document provides solutions to end-of-chapter problems from the 8th edition of the textbook "Engineering Economy" by Leland Blank and Anthony Tarquin. It includes solutions to over 50 problems involving time value of money calculations using factors, arithmetic gradients, geometric gradients, and determining interest rates. The solutions demonstrate applications of present worth, future worth, annual worth, payment, and rate of return formulas.
Crystal Lattice produces exercise mats and has spare annual capacity of 2,000 mats. Resteasy hotel chain placed a one-time order for 3,000 mats at $90 per mat instead of the normal $100 price. Accepting the order would earn a contribution margin of $50 per mat compared to $60 normally, for a net benefit of $70,000 after factoring in the $20,000 cost of an embossing machine needed for the order. Qualitative factors like reactions from other customers and Resteasy's potential as a long-term customer should also be considered before accepting the order.
The document discusses several operational decision making topics:
1. Opportunity costs consider the value of alternatives forgone by selecting one option over another, like outsourcing component manufacturing and using the freed up capacity.
2. Avoidable costs are expenses eliminated by outsourcing an activity, which reduces costs in decision making.
3. Fixed costs are often irrelevant in tactical decision making if infrastructure does not change, but they must be considered if capacity is limited.
This document discusses methods of financing capital budgeting projects including equity financing through the sale of stock or bonds, as well as debt financing through loans. It provides examples of calculating the costs and cash flows for projects financed through different methods. Specifically, it shows calculations for the number of shares or bonds needed to raise a target amount of capital after accounting for flotation costs. It also illustrates cash flow statements and calculations for projects comparing financing options of equity versus debt.
Optimización de recursos en la confección de overolesantonio alejo
This document describes an optimization problem involving the production of three types of overalls (work overalls, pilot overalls, competitor overalls) by a factory to maximize profits. The problem is modeled using linear programming with production quantities as decision variables and machine hours in three departments (marking, cutting, sewing) as constraints. The optimal solution is found to be producing 9 units of pilot overalls for a maximum profit of $2070. Sensitivity analysis shows the optimal solution remains unchanged within certain ranges when production or profit parameters are varied.
The document defines and provides examples for calculating the coefficient of variation, which is a measure used to compare the dispersion of data sets. It gives the formula for coefficient of variation as the standard deviation divided by the mean, expressed as a percentage. Two examples are shown comparing the stability of prices between two cities and production between two manufacturing plants, with the data set having the lower coefficient of variation considered more consistent or stable.
The document contains solutions to practice problems related to mergers and acquisitions. Problem 17-1 discusses the tax effects of an acquisition, finding that the tax savings are less than the cost of the merger. Problem 17-2 also examines tax effects, determining that a proposed merger is recommended based on positive net benefit. Problem 17-3 evaluates the present value of tax benefits for two potential acquisition targets.
Managerial economics studies how to direct scarce resources efficiently to achieve managerial goals. Levi Strauss & Co. paid $46,532 for a 110-year-old pair of jeans in an eBay auction, representing consumer-consumer rivalry as buyers competed for the antique item. The maximum amount to pay for an asset generating $150,000 income annually for 5 years with a 9% opportunity cost is $583,458. Net benefits are maximized at a quantity of 2 units for a firm with total benefit of B(Q)=150+28Q-5Q^2 and total cost of C(Q)=100+8Q.
This document provides examples and practice questions for calculating different measures of central tendency including the arithmetic mean, median, mode, and geometric mean. It includes sample data sets and solutions for calculating these values from both grouped and ungrouped frequency distributions. Measures are calculated for data including wages, earnings, travel times, output levels, profits, and inflation rates. Advantages and disadvantages of each measure are also discussed.
Algebra and Trigonometry 9th Edition Larson Solutions Manualkejeqadaqo
This document contains a chapter prerequisites section from a college algebra textbook. It covers reviewing real numbers and their properties, exponents and radicals, polynomials and special products, factoring polynomials, and the rectangular coordinate system and graphs. The section includes examples and exercises to help students review these important algebra topics before continuing in the textbook.
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This document discusses breakeven analysis, which is used to calculate the level of output or sales needed to cover total costs. It provides three methods to calculate breakeven output: using a table, formula, or graph. The key assumptions of breakeven analysis are also outlined, as well as its strengths and limitations for business planning. Calculating contribution and breakeven output is an important analytical method, but businesses need to be aware of its assumptions and that it is not a proven method on its own.
This document provides examples and explanations for calculating percentage discounts and successive percentage discounts. It begins by defining percentage and providing examples of calculating percentages of amounts. It then discusses calculating the single equivalent discount for two successive discounts, providing the formula and examples of calculating the single equivalent discount for successive discounts ranging from 10-40%. It concludes with word problems applying the calculation of successive discounts to real-world shopping and pricing scenarios.
This document contains a summary of a paper on advanced management accounting. It includes the following:
1. A question regarding a hypothesis test of the mean weight of potato chips packets. The hypothesis is rejected at the 5% level but not the 1% level.
2. Steps in zero-based budgeting including determining objectives, decision packages, and allocating resources.
3. A calculation to determine if a plant should be shut down based on contribution and fixed costs, finding the shutdown point is at 86.31% capacity.
4. Ranking products based on throughput contribution per minute and calculating throughput accounting ratios. Product Y ranks highest.
The summary highlights key calculations and conclusions from the document
The document provides an example of inventory management problems and solutions. It examines reorder points, economic order quantities, safety stock levels, and holding costs for situations involving normally distributed demand. The examples analyze both continuous review (Q system) and periodic review (P system) inventory models. Comparing the approaches, the periodic review system requires higher safety stock levels and costs but allows for coordinated ordering across products.
Round plc manufactures bicycle wheels and faces increased competition lowering prices. It considers a new $300,000 machine that would cut costs and improve production over 5 years. Just-In-Time customer JPB moved factories and requires strict delivery schedules. The Akshay Company expands into a developing country for cheaper costs. It researches the new market by interviewing 1,000 people and considers a factory utilizing 98% capacity. Both companies analyze investments, costs, and impacts on stakeholders from new technology and expansion plans.
The document provides examples and steps for solving linear programming problems. It explains that linear programming involves defining variables, writing constraints as inequalities, graphing the feasible region, finding the vertex coordinates, writing the objective function, substituting the vertices into the function, and determining the maximum or minimum value. Two examples are worked through showing how to maximize profit by determining the optimal number of acres to plant for different crops or units of steel products to produce.
This document contains summaries of multiple cases involving truck production, auto assembly, and ice cream production optimization problems.
1. The Merton Truck Company case examines constraints on engine assembly, metal stamping, and model assembly capacities to determine the optimal product mix of Models 101 and 102.
2. The Auto Assembly case evaluates different levels of fixed costs and conversion costs to determine the production level that maximizes profits.
3. The Ken and Larry, Inc. ice cream production case provides the initial optimal solution and examines how changes to constraints would impact profits.
This document contains solutions to problems from Chapter 16 on hybrid and derivative securities. The problems cover various topics such as lease cash flows, loan interest calculations, loan amortization schedules, comparing leases to purchases, determining values of convertible bonds and attached warrants, and calculating theoretical warrant values. The solutions provide numerical calculations and explanations for each problem.
The document contains 10 economics problems related to concepts like demand and supply, elasticity, costs of production, revenue and game theory. The problems are to be solved by analyzing the data provided in tables or graphs and calculating relevant metrics like price elasticity, average costs, total revenue etc. using formulas. The level of difficulty of the problems ranges from easy to difficult.
Pretty Ladies Company produces two types of beauty soaps and must determine production levels to maximize profit. They can produce 3 papaya soaps and 12 carrot soaps per period for a maximum profit of ₱960. My Lady Manufacturing Company produces two types of bags and has time constraints for assembly, designing, and finishing. They can produce 150 ordinary bags and 140 special bags for a maximum profit of ₱72,000.
This document contains instructions for a mathematics exam, including:
- The exam consists of multiple choice, true/false, and short answer questions worth a total of 100 points.
- No books, notes, or calculators with CAS or QWERTY keyboards are allowed. Cell phones may not be used.
- The multiple choice section includes 8 questions worth 5 points each.
- The true/false section includes 15 statements worth 15 points total.
- Three short answer questions are each worth 15 points.
Similar to Lcci business statistics series 2 2002 考试 (20)
5. Business Statistics Third Level
Series 2 2002
QUESTION 1
In the year 2000 a random sample of 96 small companies revealed the following profits and losses
distribution:
Profits and Losses (£000) Number of
companies
-50 up to 0 10
0 and up to 10 12
10 and up to 20 21
20 and up to 40 26
40 and up to 80 19
80 and up to 150 8
(a) Calculate the arithmetic mean and the standard deviation of these company profits and losses.
(8 marks)
In the previous year a random sample of 150 small companies showed a mean profit of £28,400 with a
standard deviation of £28,352.
(b) Test to see if there has been a significant increase in the average profit made by small
companies.
(7 marks)
(c) Calculate a 99% confidence interval for the arithmetic mean in the year 2000.
(5 marks)
(Total 20 marks)
3
6. Model Answer to Question 1
(a)
2
f mid pt fx fx
–50 up to 0 10 –25 –250 6,250
Over 0 and up to 10 12 5 60 300
Over 10 and up to 20 21 15 315 4,725
Over 20 and up to 40 26 30 780 23,400
Over 40 and up to 80 19 60 1,140 68,400
Over 80 and up to 150 8 115 920 105,800
96 2,965 208,875
åf å fx å fx 2
x= åx x = 2,965 = £30.89 (000) (£30,885)
åf 96
2 æ ö
2 2
s = å fx – ç å fx ÷
çåf ÷
s= 208,875 æ 2,965 ö
–ç ÷
åf è ø 96 è 96 ø
= 2,175.78 – 953.91 = 1,221.87 = £34.96 (000) (£34,955)
(b) Null hypothesis: There has not been an increase in the average level
of profits
Alternative hypothesis: There has been an increase in the average level
of profits
Critical z for 0.05 significance level I tail test 1.64
30.89 – 28.4 2.49
z = x1 – x2 = = 0.59
s12 + s22 34.962 28.3522 18.09
+
n1 n2 96 150
Alternative answer: 0.58
Conclusions: Accept the null hypothesis, there is insufficient
evidence to claim the average level of profits has
increased.
σ 34.955
(c) ci = x ± 2.58 = 30.89 ± 2.58
n 96
= 30.89 ± 2.58 x 3.57 = 30.89 ± 9.21
= £21.68 to £40.1 (000)
4
7. QUESTION 2
The price of the standard family saloon car and the company market share was recorded for a random
sample of 12 car manufacturers.
Selling 137 138 125 142 168 145 135 145 160 146 136 160
price £00
Market 14 15 10 8 9 7 11 5 3 5 7 2
share %
(a) Plot the data on a scatter diagram and comment.
(4 marks)
(b) Calculate the product-moment correlation coefficient.
(10 marks)
(c) Test to find if the correlation coefficient differs significantly from zero.
(6 marks)
(Total 20 marks)
5
8. Model Answer to Question 2
(a) Price and Market Share
16
14
12
Market Share %
10
Series 1
8
6
4
2
0
12,000 13,000 14,000 15,000 16,000 17,000 18,000
Price £
Comment : Some weak negative relationship.
137 14 18,769 196 1,918
138 15 19,044 225 2,070
125 10 15,625 100 1,250
142 8 20,164 64 1,136
168 9 28,224 81 1,512
145 7 21,025 49 1,015
135 11 18,225 121 1,485
145 5 21,025 25 725
160 3 25,600 9 480
146 5 21,316 25 730
136 7 18,496 49 952
160 2 25,600 4 320
1,737 96 253,113 948 13,593
åx åy å x2 å y2 å xy
(b) r= n å xy – (å x ) (å y )
æ n å x 2 – (å x )2 ö æ n å y 2 – (å y )2 ö
ç ÷ç ÷
è øè ø
12 x 13,593 – 1,737 x 96
r=
(12 x 253,113 – 1,737 2 )(12 x 948 – 96 2 )
163,116 – 166,752
r=
(3,037,356 – 3,017,169 )(11,376 – 9,216 )
–3,636
r= = – 0.5506
(20,187 )(2,160 )
6 CONTINUED ON NEXT PAGE
9. Model Answer to Question 2 continued
(c) Null hypothesis: The correlation coefficient does not differ from zero.
Alternative hypothesis: The correlation coefficient does differ from zero.
Degree of freedom = n – 2 = 12 – 2 = 10
Critical t0.025 = 2.23
r n–2 – 0.55 12 – 2
t= t=
1– r2 1– ( −0.552 )
–1.61
t=
1– 0.3025
–1.61
=
0.835
= –2.086
Conclusions: The calculated value of t is less than the critical
value of t. There is insufficient evidence to reject the null
hypothesis.
The correlation coefficient does not differ from zero.
7
10. QUESTION 3
A company is planning the launch of a new product. It estimates the probability of good market
conditions to be 80%. If market conditions are good the probability of a successful launch is 75%, if
market conditions are poor the probability of a successful launch is 50%.
(a) Find the probability that the launch is successful.
(5 marks)
(b) If the product launch is unsuccessful what is the probability that the market conditions were poor?
(6 marks)
The estimated returns from the new product launch are:
Market conditions are good and the product launch is successful £55 million
Market conditions are good and the product launch is unsuccessful – £13 million
Market conditions are poor and the product launch is successful £37 million
Market conditions are poor and the product launch is unsuccessful – £19 million
(c) What is the expected profit from the new product launch?
(4 marks)
The company sells an established product that has variable levels of weekly sales with arithmetic
mean of £5,000 and standard deviation of £600. You may assume that the sales are normally
distributed.
(d) (i) Find the probability that in one week there are sales of over £6,500
(ii) The sales have to exceed £3,800 in each week for the product to break even, what is the
probability of this happening?
(5 marks)
(Total 20 marks)
8
11. Model Answer to Question 3
(a) Good market conditions and successful = 0.8 x 0.75 = 0.6
Poor market conditions and successful = 0.2 x 0.5 = 0.1
Probability of successful launch = 0.7
Accept decision tree
(b) Good and unsuccessful = 0.8 x 0.25 = 0.2
Poor and unsuccessful = 0.2 x 0.5 = 0.1
Probability unsuccessful = 0.3
Poor and unsuccessf ul 0.1
= = 0.33
Probability unsuccessf ul 0.3
(c) Expected return
Good market conditions and successful launch 0.8 x 0.75 x £55m = £33m
Good market conditions and unsuccessful launch 0.8 x 0.25 x –£13m = -£2.6m
Poor market conditions and successful launch 0.2 x 0.5 x £37m = £3.7m
Poor market conditions and unsuccessful launch 0.2 x 0.5 – £19m = –£1.9m
£32.2m
(d) (i) z = x–µ z= 6,500 – 5,000
=
1,500
sd 600 600
= 2.5, prop = 1 – 0.994 = 0.006
(ii) z = x–µ z= 3,800 – 5,000
=
1,200
= 2
sd 600 600
Proportion = 0.977
9
12. QUESTION 4
(a) What are the benefits of an effective quality control system?
(4 marks)
A company in its quality control procedures sets the warning limit at the 0.025 probability point and the
action limit at the 0.001 probability point. This means for example that the upper action line is set so
that the probability of the mean exceeding the line is 0.001.
The internal diameter of a bored hole is set at 35 mm with a known standard deviation of 0.1 mm.
Random samples of 9 items at a time are taken from the production line to check the accuracy of the
manufacturing process.
(b) (i) Construct a quality control chart to monitor the manufacturing process.
(8 marks)
(ii) The results for 8 samples are given below. Plot these on your quality control chart and
comment on the graph.
(4 marks)
Sample number 1 2 3 4 5 6 7 8
Sample mean (mm) 35.05 34.94 34.89 35.16 35.15 34.95 34.99 35.08
(c) If the process mean changed to 35.02 mm and the standard deviation remained at
0.1 mm calculate the probability that the mean of a random sample of 9 components would be
outside the warning limits.
(4 marks)
(Total 20 marks)
10
13. Model Answer to Question 4
(a) The benefits of a good quality control system are better quality products,
fewer rejects and less waste, better customer relations, more sales
Warning limits = x ± 1.96 σ = 35 ± 1.96
0 .1
= 35 ± 1.96 x 0.033
n 9
upper w lts 35.06 35.07(2)
lower w lts 34.94 34.93(2)
Action limits = x ± 3.09 σ = 35 ± 3.09
0 .1
= 35 ± 3.09 x 0.033
n 9
upper act lts 35.10
lower act lts 34.90
(b) Quality Control Chart
The process goes out of control twice. It seems unstable.
(c) z = x–µ =
35.02 – 35.07
0.1
=
0.05
= 1.5
sd 0.033
9
Probability the mean lies outside the upper warning limit = 0.067
34.93 – 35.02
= 2 .7
0 .1
9
Probability the mean lies outside the lower warning limit = 0.004
Total probability = 0.071 or (0.072 if 0.0333 is used)
11
14. QUESTION 5
(a) In what circumstances is a significance test based on the ‘t’ distribution used in preference to a
significance test based on the normal distribution?
(4 marks)
Data input clerks are sent on an intensive training course to increase their keyboarding speed. The
results of a before and after test for a random sample of 10 clerks gave the following results. Speed is
measured in key depressions per minute (kdp).
Clerk a b c d e f g h i j
Before training
course (kdp) 625 598 685 754 658 690 559 840 758 685
After training
course (kdp) 610 620 690 780 690 702 573 851 744 690
(b) Test whether the training course has increased the clerks’ data input speed.
(12 marks)
(c) What is meant by a Type I and a Type II error?
(4 marks)
(Total 20 marks)
12
15. Model Answer to Question 5
(a) The ‘t’ distribution is used when n the sample size is small <30 and the
standard deviation is estimated from the sample.
(b) Null hypothesis: The course has not increased the speed of the
data input clerks
Alternative hypothesis: The course has increased the speed of the
data input clerks
Degree of freedom n – 1 10 – 1 = 9
Critical t0.05 value = 1.83
625 610 –15 225 615.04
598 620 22 484 148.84
685 690 5 25 23.04
754 780 26 676 262.44
658 690 32 1,024 492.84
690 702 12 144 4.84
559 573 14 196 17.64
840 851 11 121 1.44
758 744 –14 196 566.44
685 690 5 25 23.04
98 3,116 2,155.60
2
åd å d2 å æd – d ö
ç ÷
è ø
æ
å çd – d ÷
ç ÷
ö2
å d2 –
(å d )2
d = åd =
98
= 9 .8 sed = è ø n
n 10 n –1 n –1
982
3,116 –
2,155.8 10
= = 239.53 = 15.48 or
10 – 1 10 – 1
If a two sample means
t = d –0 = 9.8 – 0
15.48
=
9 .8
=2 test is used can score
sed 4 .9
5: nh/ah, conclusions
10
Conclusions: The calculated value of ‘t’ is greater than critical value
of ‘t’ reject the Null Hypothesis the speed of the data input
clerks has increased
(c) A Type I error is the error of rejecting a null hypothesis that is true and
a Type II error is the error of accepting a false null hypothesis which
should be rejected.
13
16. QUESTION 6
(a) (i) What is meant by the standard error of the mean? (4 marks)
(ii) What is the difference between a one and two tail test? (4 marks)
In September 2001, a Travel Agent used a random sample of 36 holiday makers to find out the
average cost per person of a one week holiday in Ruritania. The following information was found:
September 2001
Mean £372.40
Standard deviation £26.10
Sample size 36
In the previous year the average cost of each holiday was £356.20.
(b) Test whether the cost of a one week holiday to Ruritania has increased significantly since the
previous year.
(6 marks)
The company based its views on customer satisfaction from the letters it receives. In the previous
year, 68% of the letters it received were of a positive nature.
(c) The company wishes to adopt a more scientific approach to estimating customer satisfaction.
What sample size would be needed to estimate the proportion of customers’ views to within 2% of
the true figure at the 95% confidence level?
(6 marks)
(Total 20 marks)
14
17. Model Answer to Question 6
(a) (i) The standard error of the mean is the measure of dispersion of the
sample means. It equals
σ
n
(ii) A one tail test tests the direction of the difference between two statistics.
A two tail test tests if there is a difference between the two statistics without
regard to the direction.
(b) Null hypothesis: There is no difference in the holiday cost between
last year and September
Alternative hypothesis: There is an increase in the holiday cost between
last year and September
Critical z value = 1.64
z = x –µ = 372.4 – 356.2
=
16.2
= 3.72
σ/ n 26.1 / 36 4.35
Conclusions: The calculated value of z is greater than the critical value
of z. Reject the null hypothesis. There is evidence to suggest
that the holiday cost has increased significantly.
0.02 0.02
(c) ± 1.96 > ± 1.96 >
p(1 – p) 0.68 x 0.32
n n
2 0.022 0.0004 3.8416 x 0.2176
1.96 > 3.8416 > n> > 2,089.8
0.68 x 0.32 0.2176 0.0004
n n
n = 2,090
15
18. QUESTION 7
(a) In what circumstances is the multiplicative model preferable to the additive model in time series
calculations?
(4 marks)
The table below shows the quarterly sales figures for a company:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
1998 48 56 70 96
1999 64 76 86 132
2000 72 100 108 188
(b) By the method of centred moving averages, calculate the trend values for the time series and plot
the trend on a graph.
(10 marks)
The average seasonal components calculated by the multiplicative method are shown below:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
0.768 0.903 0.980 1.349
(c) Using the average seasonal components provided above and the original sales figures, calculate
the seasonally adjusted sales and plot the results on the graph constructed for part (b). Comment
on your results.
(6 marks)
(Total 20 marks)
16
19. Model Answer to Question 7
(a) The multiplicative model is preferable when the data has a strong trend with the
differences between the trend and the original data values varying proportionally to
the trend values rather than absolutely.
(b)
(c) Qtr Sales Total m avg 1 m avg 2
Trend
1 48
2 56
3 70 270 67.5 69.5
4 96 286 71.5 74
5 64 306 76.5 78.5
6 76 322 80.5 85
7 86 358 89.5 90.5
8 132 366 91.5 94.5
9 72 390 97.5 100.25
10 100 412 103 110
11 108 468 117
12 188
17 CONTINUED ON NEXT PAGE
20. Model Answer to Question 7 continued
Sales Seasonal adjustment Seasonal Adjusted Sales
48 0.768 62.50
56 0.902 62.08
70 0.980 71.43
96 1.349 71.16
64 0.768 83.33
76 0.902 84.26
86 0.980 87.76
132 1.349 97.85
72 0.768 93.75
100 0.902 110.86
108 0.980 110.20
188 1.349 139.36
Comment: The trend and seasonally adjusted data values show little difference.
This implies there is no change in the underlying trend.
18
21. QUESTION 8
(a) When might a χ2 test be used?
(4 marks)
From its records, a company analyses its sales by size and region. The table below shows the results:
Size of order
Region £0 and up to £1,000 and up £3,000 and up £10,000 and
£1,000 to £3,000 to £10,000 over
Northern 40 33 20 15
Midlands 50 45 40 25
Southern 40 32 40 20
(b) Test whether there is a relationship between size of order and region.
(12 marks)
(c) Combining the three regions estimate a 99% confidence interval for the proportion of orders that
are valued at less than £1,000.
(4 marks)
(Total 20 marks)
19
22. Model Answer to Question 8
(a) The Chi-squared test is used to test for association between characteristics
rather than variables, for randomness or changes in proportions.
(b)
Null hypothesis: There is no association between the size of order
and region
Alternative hypothesis: There is association between the size of order
and region
Degrees of freedom = (4 – 1)(3 – 1) = 6
Critical χ2 = 12.59
<£1,000 £1,000<3,000 £3,000<10,000 £10,000+
Region 40 33 20 15
50 45 40 25
40 32 40 20
Total 130 110 100 60
expected freq 35.1 29.7 27.0 16.2
52.0 44.0 40.0 24.0
42.9 36.3 33.0 19.8
contribution 0.684 0.367 1.815 0.089
to chi 0.077 0.023 0.000 0.042
0.196 0.509 1.485 0.002
5.288
2
χ = å (O – E ) = 5.288
E
Conclusions: The calculated χ2 is less than the critical χ2 . There
is insufficient evidence to reject the null hypothesis.
There is no association between the size of order
and region.
(c)
99% confidence z = ± 2.58
p = 130/400 = 0.325, (1 – p) = 0.675
ci = p ± 2.58 p(1 – p ) / n = 0.325 ± 2.58 0.325 x 0.675 / 400
= 0.325 ± 2.58 x 0.0234 = 0.325 ± 0.0604
0.265 to 0.385
20
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