Break-Even Sales Under Present and Proposed Conditions

Boleyn Company, operating at full capacity, sold 120,000 units at a price of $140 per unit during 2014. Its income statement for 2014 is as follows:

The division of costs between variable and fixed is as follows:

Management is considering a plant expansion program that will permit an increase of $2,800,000 in yearly sales. The expansion will increase fixed costs by $1,250,000, but will not affect the relationship between sales and variable costs.

Required:

1.  Determine the total fixed costs and the total variable costs for 2014.

2.  Determine for 2014 (a) the unit variable cost and (b) the unit contribution margin.

3.  Compute the break-even sales (units) for 2014.
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4.  Compute the break-even sales (units) under the proposed program.
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5.  Determine the amount of sales (units) that would be necessary under the proposed program to realize the $5,650,000 of income from operations that was earned in 2014.
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6.  Determine the maximum income from operations possible with the expanded plant.
$[removed]

7.  If the proposal is accepted and sales remain at the 2014 level, what will the income or loss from operations be for 2015?
$[removed]

8.  Based on the data given, would you recommend accepting the proposal?

1. In favor of the proposal because of the reduction in break-even point.
2. In favor of the proposal because of the possibility of increasing income from operations.
3. In favor of the proposal because of the increase in break-even point.
4. Reject the proposal because if future sales remain at the 2014 level, the income from operations of will increase.
5. Reject the proposal because the sales necessary to maintain the current income from operations would be below 2014 sales.

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Within the executive branch of the United States government, the president has powers that have an influence on public policy. In this assignment, you will be tasked with examining those powers.

Assignment Guidelines:

• Address the following in 1,000-1.250 words:
  • What type of powers does the president have that allow him or her to create and implement various public policies?
    • Provide 2 to 3 examples of these presidential powers.
      • Describe and explain the purpose of these powers.
    • Provide 2 to 3 examples of public policies that have been made using these presidential powers.
  • Have these powers and policies that you have provided evolved over time, or were they a result of a major event? Explain in detail.

Be sure to reference all sources using proper APA style.

The case for this module intends to ensure that you can: (a) describe the general structure of a computer network, (b) present some typical procedures for securing and maintaining networks, and (c) identify the links between the technological components and the overall sociotechnical framework of the firm.

Before writing-up this case, read and review the following documents (we recommend reading in this same order):

• Network Structure: http://www.pcmech.com/article/network-structure/
• CISCO (2010). Internetworking Technology Handbook. Retrieved from http://docwiki.cisco.com/wiki/Internetworking_Technology_Handbook 
• Paquet, C. (2013). Network Security Concepts and Policies. CISCO Press. Section on Security Policies. Available at http://www.ciscopress.com/articles/article.asp?p=1998559&seqNum=3 
• Ten steps to securing Networks: http://howto.techworld.com/security/1862/ten-steps-to-secure-networking/
• Sociotechnical systems in the 21st century:http://www.bayswaterinst.org/storage/Sociotechnical%20systems%20theory%20in%20the%2021st%20Century.pdf
• Sociotechnical knowledge creation and storage in organizations: 

  http://www.imo.org.ir/portal/File/ShowFile.aspx?ID=e63f8f79-68c8-4647-85a0-5ac15181b82c

Now, imagine you are starting a new business; you are opening a medium-sized food store in your hometown. (if a food store does not suit you, then any similar-sized business is fine for this assignment.) Specifically, you now must design the technology and networking architecture for your business.

For this case, write a 4-5 page description and justification for the technology and network architecture you decide upon and design. Be sure to articulate the structure, your procedure for securing and maintaining the  network, and discuss and rationalize the sociotechnical linkages that you design between your organization and the technology.

Case assignment expectations:

Your assignment will be graded following these expectations:

–          Precision: the questions asked are answered.

–          Clarity:  Your answers are clear and show your good understanding of the topic.

–          Breadth and depth: The scope covered in your paper is directly related to the questions of the assignment and the learning objectives of the module.

–          Critical thinking:  It is important to read the “required readings” posted in the background material plus others you find relevant. Your paper should include important concepts from these readings and incorporate YOUR reactions and examples that illustrate your reflective judgment and good understanding of the concepts.

–          Your paper is well written, double spaced and the references are properly cited and listed

–          Your paper meets the page requirements not counting the cover page or the references pages.

When your paper is done, send it in.

Week Four Exercise Assignment

Essay questions for the first exam

Two of these questions will be on the first exam. You will be expected to write a 2-3 paragraph response for each. You can use images from the required list or any image from the text as long as you correctly identify them with artist and title. 20 points each

• Describe the development of visual and emotional naturalism during the 1300s using three artworks as examples.

• One aspect of Renaissance humanism is its focus on the life and value of the individual. Identify three works of art in which the growing importance of unique individuals can be seen and what qualities of these individuals are being communicated.

• The Renaissance ushers in new content in art and new depictions of previous subjects. Give three examples of this trend and explain how these came to be acceptable to Renaissance patrons.

1. Week Four Exercise Assignment

   Liability

    

   1. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing: 

   · Social Security taxes: 4% on the first $55,000 earned per employee

   · Medicare taxes: 1.5% on the first $130,000 earned per employee

   · Federal income taxes withheld from wages: $7,500 

   · State income taxes: 4% of gross earnings 

   · Insurance withholdings: 1% of gross earnings 

   · State unemployment taxes: 5.4% on the first $7,000 earned per employee

   · Federal unemployment taxes: 0.8% on the first $7,000 earned per employee

    

   The company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month-end and no wages have been paid during the month. 

   a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following:

   · Social Security taxes

   · Medicare taxes

   · Federal income taxes withheld

   · State income taxes

   · Insurance withholdings

    

    

    

   b. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the following:

   · Matching Social Security taxes

   · Matching Medicare taxes

   · State unemployment taxes

   · Federal unemployment taxes

    

    

   2.  Current liabilities: entries and disclosure. A review of selected financial activities of Visconti’s during 20XX disclosed the following: 

    

   1-Dec: Borrowed $10,000 from the First City Bank by signing a 3-month, 15% note payable.
   Interest and principal are due at maturity.
   10-Dec: Established a warranty liability for the XY-80, a new product. Sales are expected to
   total 1,000 units during the month.  Past experience with similar products indicates
   that 3% of the units will require repair, with warranty costs averaging $27 per unit (parts only).
   22-Dec: Purchased $16,000 of merchandise on account from Oregon Company, terms 2/10, n/30.
   26-Dec: Borrowed $5,000 from First City Bank; signed a 15% note payable due in 60 days. (Assume 360 day year for interest)
   31-Dec: Repaired six XY-80s during the month at a total cost of $162
   31-Dec: Accrued three days of salaries at a total cost of $1,400.

    

   Instructions 

   a. Prepare journal entries to record the transactions. 

   b. Prepare adjusting entries on December 31 to record accrued interest. 

   c. Prepare the Current Liability section of Red Bank’s balance sheet as of December 31. Assume that the Accounts Payable account totals $203,600 on this date.

    

   3. Notes payable. Red Bank Enterprises was involved in the following transactions during the fiscal year ending October 31:

   2-Aug: Borrowed $55,000 from the Bank of Kingsville by signing a 90-day, 12% note.

   20-Aug: Issued a $50,000 note to Harris Motors for the purchase of a $50,000 delivery truck. The note is due in 180 days and carries a 12% interest r ate.

   10-Sep: Purchased merchandise from Pans Enterprises in the amount of $15,000.  Issued

   a 30-day, 12% note in settlement of the balance owed.

   11-Sep: Issued a $60,000 note to Datatex Equipment in settlement of an overdue account

   payable of the same amount.  The note is due in 30 days and carries a 14% interest rate.

   10-Oct: The note to Pans Enterprises was paid in full.

   11-Oct: The note to Datatex Equipment was paid in full.

   30-Oct: Paid note to Bank of Kingsville.

    

   Instructions 

   a. Prepare journal entries to record the transactions. 

   b. Prepare adjusting entries on December 31 to record accrued interest. (Daily interest is calculated utilizing the 360 day method).

   c. Prepare the Current Liability section of Red Bank’s balance sheet as of December 31. Assume that the Accounts Payable account totals $203,600 on this date.

    

2. Current Liability

   What is a current liability? From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities? Based on your current experience as well as and any additional research you may have done provide two examples of situations where businesses collect monies from customers and employees and report these amounts as a current liability.

   Guided Response:
   Review several of your peers’ posts and identify the core components of a current liability. Respond to at least two of your peers and provide recommendations to extend their thinking. Challenge your peers by asking a question that may cause them to reevaluate if their example is a current liability.

3. Client Recommendations

   A client comes to you thinking about starting a consulting business. Your client is specifically interested in what type of entity should be created for this new business. Based on your readings or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation. Based on these advantages and disadvantages provide a clear recommendation to your client.

1. Current Liability

   What is a current liability? From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities? Based on your current experience as well as and any additional research you may have done provide two examples of situations where businesses collect monies from customers and employees and report these amounts as a current liability.

   Guided Response:
   Review several of your peers’ posts and identify the core components of a current liability. Respond to at least two of your peers and provide recommendations to extend their thinking. Challenge your peers by asking a question that may cause them to reevaluate if their example is a current liability.

2. Client Recommendations

   A client comes to you thinking about starting a consulting business. Your client is specifically interested in what type of entity should be created for this new business. Based on your readings or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation. Based on these advantages and disadvantages provide a clear recommendation to your client.

McEachern, W. A. (2012). ECON Macro 3 (3rd ed.). Mason, OH: South-Western.

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

What is foreign aid and what is the goal of foreign aid? Does foreign aid promote economic development? Explain briefly.

How did the Bretton Woods system operate? What caused its collapse? Some think the current system of managed but floating rates is too unstable. What would generate the instability?

Describe developing countries and how they differ from industrial market economies. How can international trade aid development? In what ways does the international economy impose problems on developing countries?

How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs? Explain. Who are the winners and losers from trade restrictions? Given that trade restrictions impose losses on an economy, why are trade restrictions so common?

Why can’t all the balance of payments accounts be in surplus? What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?

(FOR TOM CHOMLEA ONLY)

Discuss at least two (2) steps you could take to protect yourself from giving a false confession to the crime.

Chapter 10 describes four goals that motivate people to be prejudiced. Provide at least one (1) original example of a prejudice behavior that is motivated by at least two (2) of the goals described in the chapter.

Imagine the following scenario. Your good friends have been married for several years and are currently having trouble in their relationship.

1.       Describe at least three (3) pieces of advice that you would give to the couple.

2.       Provide at least one (1) supporting theory for each piece of advice.

Imagine that you have approval from the university’s human subject board to use deception in an experiment to study bystander intervention.

Briefly describe the experimental procedure you would use to test whether a participant is more likely to help when he or she is alone compared to being in a group.