Maria Alvarez, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Upon what does Maria make this assumption? If you choose one over the other, what is your rationale?
Discuss the differences between accrual-basis financial statements and cash-basis financial statements. Determine which provides more useful information and the reasons it is more useful.
From the e-Activity, discuss ways the company you researched could become more competitive by modifying its operations strategy (with a focus on improving its productivity). Provide specific examples to support your response
From the e-Activity, recommend one new product for the company of your choice to offer and describe the process for introducing that product. Provide specific examples to support your response.
Chapter 2: Problems 2,4,6,8,
2. Last week a painter painted three houses in five days. This
week she painted two houses in four days. In which week was
the painter more productive?
4. A company that makes kitchen chairs wants to compare
productivity at two of its facilities. At facility #1, six workers produced
240 chairs. At facility #2, four workers produced 210 chairs
during the same time period.Which facility was more productive?
6. Aztec Furnishings makes hand-crafted furniture for sale in
its retail stores. The furniture maker has recently installed a new
assembly process, including a new sander and polisher.With this
new system, production has increased to 90 pieces of furniture
per day from the previous 60 pieces of furniture per day. The
number of defective items produced has dropped from 10 pieces
per day to 1 per day. The production facility operates strictly
eight hours per day. Evaluate the change in productivity for
Aztec using the new assembly process.
8. Med-Tech labs is a facility that provides medical tests and
evaluations for patients, ranging from analyzing blood samples
to performing magnetic resonance imaging (MRI). Average cost
to patients is $60 per patient. Labor costs average $15 per patient,
materials costs are $20 per patient, and overhead costs are
averaged at $20 per patient.
(a) What is the multifactor productivity ratio for Med-Tech?
What does your finding mean?
(b) If the average lab worker spends three hours for each patient,
what is the labor productivity ratio?
Chapter 3: Problems 2,8,10,12,14,16,18
2. Med-First is a medical facility that offers outpatient medical
services. The facility is considering offering an additional
service, mammography screening tests, on-site. The facility
estimates the annual fixed cost of the equipment and skills necessary
for the service to be $120,000. Variable costs for each patient
processed are estimated at $35 per patient. If the clinic plans to
charge $55 for each screening test, how many patients must it
process a year in order to break even?
8. George Fine, owner of Fine Manufacturing, is considering
the introduction of a new product line. George has considered
factors such as costs of raw materials, new equipment, and requirements
of a new production process. He estimates that the
variable costs of each unit produced would be $8 and fixed costs
would be $70,000.
(a) If the selling price is set at $20 each, how many units have
to be produced and sold for Fine Manufacturing to break
even? Use both graphical and algebraic approaches.
(b) If the selling price of the product is set at $18 per unit,
Fine Manufacturing expects to sell 15,000 units. What
would be the total contribution to profit from this product
at this price?
(c) Fine Manufacturing estimates that if it offers the product
at the original target price of $20 per unit, the company
will sell about 12,000 units.Which pricing strategy—$18
per unit or $20 per unit—will yield a higher contribution
to profit?
(d) Identify additional factors that George Fine should consider
in deciding whether to produce and sell the new product.
10. Easy-Tech Software Corporation is evaluating the production
of a new software product to compete with the popular word
processing software currently available. Annual fixed costs of producing
the item are estimated at $150,000, and the variable cost is
$10 per unit. The current selling price of the item is $35 per unit,
and the annual sales volume is estimated at 50,000 units.
(a) Easy-Tech is considering adding new equipment that
would improve software quality. The negative aspect of
this new equipment would be an increase in both fixed
and variable costs. Annual fixed costs would increase by
$50,000 and variable costs by $3. However, marketing expects
the better-quality product to increase demand to
70,000 units. Should Easy-Tech purchase this new equipment
and keep the price of their product the same? Explain
your reasoning.
(b) Another option being considered by Easy-Tech is the increase
in the selling price to $40 per unit to offset the additional
equipment costs. However, this increase would
result in a decrease in dem
password : SHIV
Discuss the differences between accrual-basis financial statements and cash-basis financial statements. Determine which provides more useful information and the reasons it is more useful.
From the e-Activity, discuss ways the company you researched could become more competitive by modifying its operations strategy (with a focus on improving its productivity). Provide specific examples to support your response
From the e-Activity, recommend one new product for the company of your choice to offer and describe the process for introducing that product. Provide specific examples to support your response.
Chapter 2: Problems 2,4,6,8,
2. Last week a painter painted three houses in five days. This
week she painted two houses in four days. In which week was
the painter more productive?
4. A company that makes kitchen chairs wants to compare
productivity at two of its facilities. At facility #1, six workers produced
240 chairs. At facility #2, four workers produced 210 chairs
during the same time period.Which facility was more productive?
6. Aztec Furnishings makes hand-crafted furniture for sale in
its retail stores. The furniture maker has recently installed a new
assembly process, including a new sander and polisher.With this
new system, production has increased to 90 pieces of furniture
per day from the previous 60 pieces of furniture per day. The
number of defective items produced has dropped from 10 pieces
per day to 1 per day. The production facility operates strictly
eight hours per day. Evaluate the change in productivity for
Aztec using the new assembly process.
8. Med-Tech labs is a facility that provides medical tests and
evaluations for patients, ranging from analyzing blood samples
to performing magnetic resonance imaging (MRI). Average cost
to patients is $60 per patient. Labor costs average $15 per patient,
materials costs are $20 per patient, and overhead costs are
averaged at $20 per patient.
(a) What is the multifactor productivity ratio for Med-Tech?
What does your finding mean?
(b) If the average lab worker spends three hours for each patient,
what is the labor productivity ratio?
Chapter 3: Problems 2,8,10,12,14,16,18
2. Med-First is a medical facility that offers outpatient medical
services. The facility is considering offering an additional
service, mammography screening tests, on-site. The facility
estimates the annual fixed cost of the equipment and skills necessary
for the service to be $120,000. Variable costs for each patient
processed are estimated at $35 per patient. If the clinic plans to
charge $55 for each screening test, how many patients must it
process a year in order to break even?
8. George Fine, owner of Fine Manufacturing, is considering
the introduction of a new product line. George has considered
factors such as costs of raw materials, new equipment, and requirements
of a new production process. He estimates that the
variable costs of each unit produced would be $8 and fixed costs
would be $70,000.
(a) If the selling price is set at $20 each, how many units have
to be produced and sold for Fine Manufacturing to break
even? Use both graphical and algebraic approaches.
(b) If the selling price of the product is set at $18 per unit,
Fine Manufacturing expects to sell 15,000 units. What
would be the total contribution to profit from this product
at this price?
(c) Fine Manufacturing estimates that if it offers the product
at the original target price of $20 per unit, the company
will sell about 12,000 units.Which pricing strategy—$18
per unit or $20 per unit—will yield a higher contribution
to profit?
(d) Identify additional factors that George Fine should consider
in deciding whether to produce and sell the new product.
10. Easy-Tech Software Corporation is evaluating the production
of a new software product to compete with the popular word
processing software currently available. Annual fixed costs of producing
the item are estimated at $150,000, and the variable cost is
$10 per unit. The current selling price of the item is $35 per unit,
and the annual sales volume is estimated at 50,000 units.
(a) Easy-Tech is considering adding new equipment that
would improve software quality. The negative aspect of
this new equipment would be an increase in both fixed
and variable costs. Annual fixed costs would increase by
$50,000 and variable costs by $3. However, marketing expects
the better-quality product to increase demand to
70,000 units. Should Easy-Tech purchase this new equipment
and keep the price of their product the same? Explain
your reasoning.
(b) Another option being considered by Easy-Tech is the increase
in the selling price to $40 per unit to offset the additional
equipment costs. However, this increase would
result in a decrease in dem
password : SHIV
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