SPEA-V 184 Midterm: SPEA-V184 Exam 2013 Fall

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turquoisegnu128

11 Oct 2018

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Department

Public And Environmental Affairs

Course

SPEA-V 184

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All

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Instructions: (10 marks) (10 marks) (10 marks) (10 marks) (40 marks) (20 marks) Read the following instructions carefully before answering the paper, as failure to act upon them will result in a loss of marks. Write your answers in your answer book, which is provided in the exam. Ensure that your name and student number are clearly indicated on your answer book. Write your answers in either blue or black ink in your answer book. Read each question very carefully before you answer it and number your answers exactly as the questions are numbered. Begin with the question for which you think you will get the best marks. Note the mark allocations for each question give enough facts to earn the marks allocated. Don"t waste time by giving more information than required. You are welcome to use diagrams to illustrate your answers. Please write neatly we cannot mark illegible handwriting.

Related Questions

PLEASE ANSWER ALL QUESTIONS FOR EACH SECTION FOR #7,8,9,10; THE ANSWER FOR THOSE QUESTIONS ARE FROM SECTIONS1,2,3,4,5,6. Answer them correctly and take your time and fill ineach section where it needs an answer. Please help.

[The following information applies to the questionsdisplayed below.]

The management of Zigby Manufacturing prepared the followingestimated balance sheet for March, 2015:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015
Assets
Cash	$	99,000
Accountsreceivable		500,250
Raw materialsinventory		101,000
Finished goodsinventory		402,500

Total current assets		1,102,750
Equipment,gross		618,000
Accumulateddepreciation		(159,000)

Equipment, net		459,000

Total assets	$	1,561,750

Liabilities and Equity
Accountspayable		209,700
Short-term notes payable		21,000

Total current liabilities	$	230,700
Long-term notepayable		505,000

Total liabilities		735,700
Common stock		344,000
Retainedearnings		482,050

Total stockholdersâ equity		826,050

Total liabilitiesand equity	$	1,561,750

To prepare a master budget for April, May, and June of 2015,management gathers the following information.

a.	Sales for March total 23,000 units. Forecasted sales in unitsare as follows: April, 23,000; May, 19,000; June, 18,800; July,23,000. Sales of 249,000 units are forecasted for the entire year.The productâs selling price is $29.00 per unit and its totalproduct cost is $25.00 per unit.
b.	Company policy calls for a given monthâs ending raw materialsinventory to equal 50% of the next monthâs materials requirements.The March 31 raw materials inventory is 5,050 units, which complieswith the policy. The expected June 30 ending raw materialsinventory is 4,500 units. Raw materials cost $20 per unit. Eachfinished unit requires 0.50 units of raw materials.
c.	Company policy calls for a given monthâs ending finished goodsinventory to equal 70% of the next monthâs expected unit sales. TheMarch 31 finished goods inventory is 16,100 units, which complieswith the policy.
d.	Each finished unit requires 0.50 hours of direct labor at a rateof $24 per hour.
e.	Overhead is allocated based on direct labor hours. Thepredetermined variable overhead rate is $3.60 per direct laborhour. Depreciation of $24,320 per month is treated as fixed factoryoverhead.
f.	Sales representativesâ commissions are 10% of sales and are paidin the month of the sales. The sales managerâs monthly salary is$3,900.
g.	Monthly general and administrative expenses include $10,000administrative salaries and 0.8% monthly interest on the long-termnote payable.
h.	The company expects 25% of sales to be for cash and theremaining 75% on credit. Receivables are collected in full in themonth following the sale (none is collected in the month of thesale).
i.	All raw materials purchases are on credit, and no payables arisefrom any other transactions. One monthâs raw materials purchasesare fully paid in the next month.
J.	The minimum ending cash balance for all months is $110,000. Ifnecessary, the company borrows enough cash using a short-term noteto reach the minimum. Short-term notes require an interest paymentof 1% at each month-end (before any repayment). If the ending cashbalance exceeds the minimum, the excess will be applied to repayingthe short-term notes payable balance.
K.	Dividends of $19,000 are to bedeclared and paid in May.

l.	No cash payments for income taxes are to be made during thesecond calendar quarter. Income tax will be assessed at 40% in thequarter and paid in the third calendar quarter.
m.	Equipment purchases of $139,000 are budgeted for the last day ofJune.

Required:

Prepare the following budgets and other financial information asrequired. All budgets and other financial information should beprepared for the second calendar quarter, except as otherwise notedbelow. Round calculations up to the nearest whole dollar, exceptfor the amount of cash sales, which should be rounded down to thenearest whole dollar:

1. SALES BUDGET

ZIGBY MANUFACTURING
Sales Budget
April, May, and June 2015
	Budgeted Unit Sales	Budgeted Unit Price	Budgeted Total Dollars
April 2015	23,000	$29.00	667,000
May 2015	19,000	29.00	551,000
June 2015	18,800	29.00	545,200
Totals for the quarter	60,800		1,763,200

Production budget.

ZIGBY MANUFACTURING
Production Budget
April, May, and June 2015
	April	May	June	Total
Next month's budgeted sales(units)	19,000	18,800	23,000
Ratio of inventory to future sales	70%	70%	70%
Budgeted ending inventory (units)	13,300	13,160	16,100
Budgeted units sales for month	23,000	19,000	18,800
Required units ofavailable production	36,300	32,160	34,900
Beginning inventory (units)	16,100	13,300	13,160
Unitsto be produced	20,200	18,860	21,740	60,800

3. Raw materials budget.

ZIGBY MANUFACTURING
Raw Materials Budget
April, May, and June 2015
	April	May	June	Total
Production budget (units)	20,200	18,860	21,740
Materials requirements per unit	0.50	0.50	0.50
Materials needed for production	10,100	9,430	10,870
Budgeted ending inventory	4,715	5,435	4,500
Total materialsrequirements (units)	14,815	14,865	15,370
Beginning inventory	5,050	4,715	5,435
Materials to be purchased	9,765	10,150	9,935	29,850
Material price per unit	$20	$20	$20	$20
Total cost of direct materialpurchases	$195,300	$203,000	$198,700	$597,000

Direct labor budget.

ZIGBY MANUFACTURING
Direct Labor Budget
April, May, and June 2015
	April	May	June	Total
Budgeted production (units)	20,200	18,860	21,740
Laborrequirements per unit (hours)	0.50	0.50	0.50
Totallabor hours needed	10,100	9,430	10,870	30,400
Laborrate (per hour)	$24	$24	$24	$24
Labor dollars	$242,400	$226,320	$260,880	$729,600

Factory overhead budget.

ZIGBY MANUFACTURING
Factory Overhead Budget
April, May, and June 2015
	April	May	June	Total
Labor hours needed	10,100	9,430	10,870
Variable factory overhead rate	3.60	3.60	3.60
Budgeted variable overhead	$36,360	$33,948	$39,132	$109,440
Budgeted fixed overhead	24,320	24,320	24,320	72,960
Budgeted total overhead	$60,680	$58,268	$63,452	$182,400

Selling expense budget.

ZIGBY MANUFACTURING
Selling Expense Budget
April, May, and June 2015
	April	May	June
Budgeted sales
Salescommission percent	10%
Sales commissions
Salessalaries	3,900
Totalselling expenses

General and administrative expense budget.

ZIGBY MANUFACTURING
General and AdministrativeExpense Budgets
April, May, and June 2015
	April	May	June
Salaries
Interest on long-term note
Totalexpenses

Cash budget. (Negative balance and Loan repayment amountshould be indicated with minus sign. Round your answers to 2decimal places.)

Calculation of Cash receipts fromcustomers:
		April	May	June
Total budgeted sales
Cash sales	25%
Sales on credit	75%

Total cashreceipts from customers
		April	May	June
Current month's cash sales
Collections of receivables

ZIGBYMANUFACTURING
Cash Budget
April, May, and June 2015
	April	May	June
Beginning cash balance
Cashreceipts from customers
Total cash available
Cash disbursements:

Payments for raw materials
Payments for direct labor
Payments for variable overhead
Salescommissions
Salessalaries
General & administrative salaries
Taxespaid
Dividends
Loan interest
Purchases of equipment
Total cash disbursements	0	0	0
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance

Loan balance
	April	May	June
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance - End of month

9. Budgeted income statement for the entirefirst quarter (not for each month separately).

ZIGBYMANUFACTURING
Budgeted IncomeStatement
For Three MonthsEnded June 30, 2015
Sales
Costof goods sold
Grossprofit
Operating expenses
Salescommissions
Salessalaries
General administrative salaries
Interest expense
Long-term note interest

Totaloperating expenses		0
Incomebefore taxes		0
Incometax
Netincome		$0

10. Budgeted balance sheet.

ZIGBY MANUFACTURING
Budgeted Balance Sheet
June 30, 2015
Assets
Cash
Accounts receivable
Rawmaterials inventory
Finished goods inventory

Totalcurrent assets		$0
Equipment
Accumulated depreciation
Equipment, net		0
Totalassets
Liabilities andEquity
Liabilities
Accounts payable
Income taxes payable
Bank loan payable

Totalcurrent liabilities
Long-term note payable
Stockholders'Equity
Commonstock
Retained earnings
TotalStockholders' Equity
TotalLiabilities and Equity

PLEASE SOLVE ALL NECESSARY Questions!!!!

SORRY ABOUT MISSING INFORMATION IT IS ALL HERE NOW!!!

raspberryweasel253

AEC 316 - Agricultural Marketing
Homework Assignment 2: Chapter 2

Name:____________________ Date:____________________

Multiple choice questions.

There is only one correct answer in multiple choice questions. Please, mark the correct

answer. Each multiple choice question is worth 5 points.

1. A perfectly competitive firmâs demand curve equals its:

Marginal cost curve

Average variable cost curve

Average fixed cost curve

Average revenue curve

None of the above

2. A perfectly competitive firm maximizes profits by setting price equal to:

a. Marginal cost

b. Marginal revenue

c. Average revenue

d. Average total cost

e. Average variable cost

3. In order for a monopoly to continue to be a monopoly:

a. The marginal revenue curve must be downward sloping

b. There must be no close substitutes

c. Marginal revenue must equal marginal costs

d. Average total costs must be decreasing

e. None of the above

4. Marketing strategy which involves dividing a broad target market into subsets of consumers who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.

a. Brand name

b. Minor ingredients

c. Market segmentation

d. Product features

e. Packaging

5. What characteristic is indicative of oligopolies?

Low profits

Interdependence of firms

Many firms

Entry is blocked

None of the above

6. At an equilibrium price:

a.The self-interest of consumers is maximized

b.Supply equals demand

c.There is an upward pressure on price

d.There is a downward pressure on price

None of the above

7. When both supply and demand increase, equilibrium quantity will:

a.Decrease

b.Increase

Stay the same

Canât say

None of the above

8. Elasticity is a concept that deals with:

a.Market structure

b.Market equilibrium

c.Perfect competition

d.Consumer and producer sensitivity to changes in prices and income

None of the above

9. A set of competing firms producing similar products or a commodity in a market is called a(n) ___ .

a.Branch

b.Competition

c.Channel

Industry

None of the above

10. A market structure where there is only one buyer of a specific product is called:

a.Monopsony

b.Monopoly

c.Oligopsony

Monopsonistic competition

None of the above

Essay question: 50 points

11. Use the agricultural commodity that you selected in Chapter 1 and choose one agribusiness that buys it. Investigate the agribusiness using the Internet and other resources, and then write an essay addressing all or as many as possible of the following aspects of the agribusiness:

Size

Sales

Scope of product line

Worth (if public)

Number of employees

Locations globally

Market structure

Industry sector

All your answers/discussion should be typed in one essay that is at least 15 lines long (using formal English, correct paragraph and sentence structure, and making sure your ideas flow well from one sentence to another) using Times New Roman, 12 point, double space and 1-inch margins all around. Before submitting the final essay, use the âSpelling & Grammarâ function of the MS Word to correct grammar.

At the end of your essay, provide the full citation record in alphabetical order in your list of references. For examples, visit: http://www.saea.org/wp-content/uploads/2013/08/reference-style-sheet.pdf. Please, note that the list of references does not count toward the minimum required 15 lines. Include your references in the text as â(Smith, 2015)â when citing at the end of a sentence, or âAccording to Smith (2015)â when citing at the beginning of a sentence. For example,

Negative publicity is a key determinant affecting consumersâ buying decisions (Ahluwalia, Burnkrant, and Unnava, 2000).

According to Cawley and Rizzo (2005), pharmaceutical products in the same therapeutic class experienced negative spillover in terms of lost sales.

Note: Most of the future essay questions will build on this essay question and/or the one agricultural commodity that you choose. This means that if there is little information on the agricultural commodity that you have chosen for this essay question, you should consider choosing a more common agricultural commodity on which ample information is available. In addition, this course will require you to compile all your answers to the essay questions into one term paper to be submitted by the end of the course. This means that the more effort you put into answering essay questions now, the more material you will have accumulated for your term paper by the end of the semester.

TYPE YOUR ANSWER TO THE ESSAY QUESTION 11 BELOW USING AS MUCH SPACE AS YOU NEED. THEN, PRINT THE HOMEWORK ASSIGNMENT AND SUBMIT THE HARD COPY.

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the

	a.	forgone working or partying, depending on which was your next best choice.
	b.	forgone work.
	c.	forgone working and partying.
	d.	test because you are taking it.

1 points

QUESTION 2

A trend is

	a.	a measure of closeness on a scatter diagram.
	b.	a general tendency for a variable to rise or fall.
	c.	the maximum value of a variable.
	d.	the difference between the maximum value of a variable and the minimum value of the variable.

1 points

QUESTION 3

A time-series graph measures

	a.	time on the y-axis and the variable or variables in which we are interested on the x-axis.
	b.	time on the x-axis and the variable or variables in which we are interested on the y-axis.
	c.	the value of one variable against the value of another variable.
	d.	the value of an economic variable for different groups in a population at a point in time.

1 points

QUESTION 4

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

	a.	Why will we offer health care?
	b.	How will health care be produced?
	c.	For whom will health care be produced?
	d.	What type of health care will be produced and in what quantity?

1 points

QUESTION 5

As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks. In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.

	a.	positive; negative
	b.	negative; positive
	c.	linear; negative
	d.	positive; linear

1 points

QUESTION 6

Microeconomics includes the study of the

	a.	choices made by individuals and businesses.
	b.	recessions and inflation in the global economy.
	c.	aggregate effects on the national economy.
	d.	reasons why the government changes interest rates.

1 points

QUESTION 7

When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question.

	a.	when
	b.	for whom
	c.	how
	d.	what

1 points

QUESTION 8

Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

	a.	the opportunity cost of working is negative.
	b.	the marginal cost of each additional work hour is not important to most workers.
	c.	workers are irrational.
	d.	workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work.

1 points

QUESTION 9

A choice made by comparing all relevant alternatives systematically and incrementally is

	a.	an opportunity cost.
	b.	a benefit.
	c.	a sunk cost.
	d.	a choice on the margin.

1 points

QUESTION 10

A normative statement

i. can be tested as to whether it is true or false.

ii. is considered negative.

iii. depends on a person's values.

	a.	i, ii, and iii
	b.	iii only
	c.	i and iii
	d.	ii and iii

1 points

QUESTION 11

Normative statements

i. describe how the world is.

ii. describe how the world ought to be.

iii. depend on people's values and cannot be tested.

	a.	iii only.
	b.	i only.
	c.	ii and iii.
	d.	ii only.

1 points

QUESTION 12

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

	a.	positive benefits and normative costs
	b.	normative benefits and positive costs
	c.	marginal benefit and marginal cost
	d.	opportunity cost and the sunk cost

1 points

QUESTION 13

If x increases whenever y decreases, then x and y are

	a.	positively related.
	b.	negatively related.
	c.	not related.
	d.	related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

1 points

QUESTION 14

Rational choice

	a.	is what you must give up get what you want.
	b.	is made by comparing different incentives.
	c.	making the choice.
	d.	provides the answer to only the "how" question.

1 points

QUESTION 15

Scarcity results from the fact that

	a.	choices made in self-interest rare not always in the social interest.
	b.	not all goals are desirable.
	c.	people's wants exceed the resources available to satisfy them
	d.	we cannot answer the major economic questions.

1 points

QUESTION 16

When Delta decides to quit flying to Lithuania, it directly answers the ________ question.

	a.	what
	b.	why
	c.	for whom
	d.	how

1 points

QUESTION 17

A normative statement

	a.	says what is currently believed about the way the world operates.
	b.	depends on someone's values.
	c.	cannot use the word "should."
	d.	must be tested to determine if it is correct.

1 points

QUESTION 18

Which of the following statements best describes the study of economics? Economics studies how

	a.	to organize production so that scarcity does not occur.
	b.	to create incentives so that scarcity does not exist.
	c.	firms make profits.
	d.	we make choices in the face of scarcity.

1 points

QUESTION 19

Which of the following best defines economics?

	a.	Economics teaches how to limit our wants.
	b.	Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.
	c.	Economics helps you earn as much money as possible.
	d.	Economics studies how to choose the best alternative when coping with scarcity.

1 points

QUESTION 20

In economics, cost is ________, and benefit is ________.

	a.	the amount of money that you pay for something; the amount of money that someone else is willing to pay you
	b.	what you are willing to pay on the margin; what the government pays you when you are unemployed or retired
	c.	what you must give up to get something; what you are willing to give up to get it
	d.	the amount of money that you pay on the margin; the amount of money that you receive on the margin

1 points

QUESTION 21

If Jessie studies economics for two hours instead of going to the movies with her friends, then

	a.	the opportunity cost of studying is the missed movie.
	b.	Jessie is ignoring a sunk cost
	c.	Jessie is not responding to any incentives.
	d.	Jesse definitely is making a rational choice.

1 points

QUESTION 22

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

	a.	The $80 price of skiing is a sunk cost and so did not affect Adam's decision.
	b.	He loses a total of $120 per day, so his decision is irrational.
	c.	His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.
	d.	Adam's lost $40 per day in wages is a sunk cost and so did not affect his decision.

1 points

QUESTION 23

If a curve falls and then rises, it

	a.	has a maximum.
	b.	has a linear relationship.
	c.	has a minimum.
	d.	has a constant slope relationship.

1 points

QUESTION 24

In 2003, Michael Jordan decided to retire from professional basketball. Which of the following was an opportunity cost of his decision?

	a.	the avoidance of pain and injury from playing one more year
	b.	the time he could spend with his family while retired
	c.	the lost salary from playing one more year
	d.	the value of new employment opportunities that would await him

1 points

QUESTION 25

Which of the following statements is a normative statement?

	a.	Military spending as a percent of government spending decreased by 5 percent in the 1990s.
	b.	Every American household should have health care insurance coverage.
	c.	Welfare reform has decreased the amount the government spends on welfare.
	d.	The price of computers fell last year.

greencat417

SPEA-V 184 Midterm: SPEA-V184 Exam 2013 Fall

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