The actual information pertains to the month of june. as part of the budgeting process, colonial fencing company developed the following static budget for september. colonial is in the process of preparing the flexible budget and understanding the results. actual results flexible budget static budget sales volume (in units) 12 comma 000 18 comma 500 sales revenues $ 610 comma 000 $ $ 777 comma 000 variable costs 256,000 $ 300,000 contribution margin $ 354 comma 000 $ $477 comma 000 fixed costs 241 comma 000 $ 240 comma 000 operating profit $ 113 comma 000 $ $ 237 comma 000 the flexible budget for sales revenues will be? a. $ 610 comma 000 b. $ 777 comma 000 c. $ 504 comma 000 d. $ 795 comma 500

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to security b. (ii) the likely range of returns for security a in any given year would be higher than the likely range of returns for security b. (iii) the sharpe ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?