Twenty sales representatives from the Scrapper Elevator Company market their goods across North America. Below is a list of each representative's monthly sales volume. Assume that the population values correspond to these sales numbers.

$$\begin{array}{llllllllllllllllllll} 2 & 3 & 2 & 3 & 3 & 4 & 2 & 4 & 3 & 2 & 2 & 7 & 3 & 4 & 5 & 3 & 3 & 3 & 3 & 5 \end{array}$$

Draw a graph showing the population distribution.

The manager of a publishing company plans to give a $\$ 20,000$ bonus to the top $15 \%$, $\$ 10,000$ to the next $30 \%$, and $\$ 5,000$ to the next $10 \%$ of sales representatives. If the publishing company has a total of $200$ sales representatives, what is the expected bonus that the company will pay?

Agua Frio is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Frio will budget for September. The solution to one item may depend on the answer to an earlier item. a. Management expects to sell equipment that cost $17,000 at a gain of$3,000. Accumulated depreciation on this equipment is $7,000. b. Management expects to sell 7,400 cases of water in August and 9,600 cases in September. Each case sells for$ 13. Cash sales average 30% of total sales, and credit sales make up the rest. Three-fourths of credit sales are collected in the month of the sale, with the balance collected the following month. c. The company pays rent and property taxes of $3,900 each month. Commissions and other selling expenses average 30% of sales. Agua Frio pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month.

Suppose Weatherford's financial consultants report $(1)$ that the inventory turnover ratio is Sales/Inventory $=3$ times versus an industry average of $4$ times and $(2)$ that Weatherford can reduce inventories and thus raise its turnover to $4$ without affecting sales, the profit margin, or the other asset turnover ratios. Under those conditions, use the AFN equation to determine the amount of additional funds Weatherford will require next year if sales grow by $20 \%$.

Use the real estate sales price data and the model $y=\beta_0+\beta_1 x_1+\beta_2 x_2+$ $\varepsilon$ to find (1) a point estimate of and a $95$ percent confidence interval for the mean sales price of all houses having $2,000$ square feet and a niceness rating of $8$ and (2) a point prediction of and a $95$ percent prediction interval for the sales price of a single house having $2,000$ square feet and a niceness rating of $8.$ Hint: Use MegaStat or Minitab.

Presented below is information for Zhou Co. for the month of January 2014.

      Cost of goods sold          $212,000     Rent expense$32,000 
      Freight-out                    7,000     Sales discounts                8,000 
      Insurance expense             12,000     Sales returns and allowances  20,000 
      Salaries and wages expense    60,000     Sales revenue                370,000

Instructions

(a) Prepare an income statement using the format presented on page 245. Assume a 25% tax rate.

(b) Calculate the profit margin and the gross profit rate.

The sales y (in billions of dollars) for Harley-Davidson from 2000 through 2007 are shown in the table.

$$\begin{array}{|c|c|} \hline \text { Year } & \text { Sales, } \boldsymbol{y} \\ \hline 2000 & 2.91 \\ 2001 & 3.36 \\ 2002 & 4.09 \\ 2003 & 4.62 \\ 2004 & 5.02 \\ 2005 & 5.34 \\ 2006 & 5.80 \\ 2007 & 5.73 \\ \hline \end{array}$$

Use the trace feature of the graphing utility to approximate the year in which the sales for Harley-Davidson were the greatest.

Witkum, Inc., reported the following sales and net income amounts:

$$\begin{matrix} \text{(In thousands)} & \text{2012} & \text{2011} & \text{2010} & \text{2009}\\ \text{Sales...........................} & \text{ \$9,960 } & \text{\$9,260 } & \text{\$8,790 } & \text{\$8,590 }\\ \text{Net income.................} & \text{670} & \text{500} & \text{480} & \text{445}\\ \end{matrix}$$

Show Witkum’s trend percentages for sales and net income. Use 2009 as the base year.

Those who advocate for monetary incentives in a work environment claim that this type of incentive has the greatest appeal because it allows the winners to do what they want with their winnings. Those in favor of tangible incentives argue that money lacks the emotional appeal of, say, a weekend for two at a romantic country inn or elegant hotel or a weeklong trip to Europe. A few years ago a national tire company, in an effort to improve sales of a new line of tires, decided to test which method - offering cash incentives or offering non-cash prizes such as vacations - was more successful in increasing sales. The company had 60 retail sales districts of various sizes across the country and data on the previous sales volume for each district. Describe a completely randomized design using the 60 retail sales districts that would help answer this question.

Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a standard cutlery set and a deluxe set and sells them to retail department stores throughout the country. The standard set sells for $60, and the deluxe set sells for$75. The variable expenses associated with each set are given below. $$ \begin{matrix} \text{ } & \text{Standard} & \text{Deluxe}\\ \text{Production costs} & \text{\$ 15.00} & \text{\$ 30.00}\\ \text{Sales commissions (15\\% of sales price)} & \text{\$ 9.00} & \text{\$ 11.25}\\ \end{matrix} $$ The company's fixed expenses each month are: $$ \begin{matrix} \text{Advertising} & \text{\$ 105.000}\\ \text{Depreciation} & \text{\$ 21.700}\\ \text{Administrative} & \text{\$ 63.000}\\ \end{matrix} $$ Salespersons are paid on a commission basis to encourage them to be aggressive in their sales efforts. Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below: $$ \begin{matrix} \text{ } & \text{Standard} & \text{Deluxe} & \text{Total}\\ \text{April} & \text{4.000} & \text{2.000} & \text{6.000}\\ \text{May} & \text{1.000} & \text{5.000} & \text{6.000}\\ \end{matrix} $$ 1. Prepare contribution format income statements for April and May. Use the following headings: $$ \begin{matrix} \text{ } & \text{Standard} & \text{ } & \text{Deluxe} & \text{ } & \text{Total}\\ \text{ } & \text{Amount} & \text{Percent} & \text{Amount} & \text{Percent} & \text{Amount} & \text{Percent}\\ \text{Sales}\\ \text{Etc}\\ \end{matrix} $$ Place the fixed expenses only in the Total column. Do not show percentages for the fixed expenses. 2. Explain the difference in net operating incomes between the two months, even though the same total number of sets was sold in each month. 3. What can be done to the sales commissions to improve the sales mix? a. Using April's sales mix, what is the break-even point in dollar sales? b. Without doing any calculations, explain whether the break-even points would be higher or lower with May's sales mix than April's sales mix.

Generation Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow:

$$\begin{array}{lrr} \hline&\textbf{Tables}&\textbf{Chairs}\\ \hline\text{Sales Price }&\$ 1,500&\$100\\ \text{Variable manufacturing costs}&915&41\\ \text{Sales commission (9\\\%)}&135&9\\ \hline \end{array}$$

Generation Furniture has three sales representatives: Ansley, Brett, and Casey. Ansley sold 100 tables with 6 chairs each. Brett sold 50 tables with 4 chairs each. Casey sold 80 tables with 8 chairs each. Requirements

1. Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places).
2. Which sales rep has the highest contribution margin ratio? Explain why.

A chain of hardware stores is trying to sell more paint by mailing pamphlets describing the paint. In 15 communities containing one of these hardware stores, the paint sales (in dollars) were recorded for the months before and after the ads were sent out. The paired results for each store follow.

$$\scriptstyle\begin{array}{c|ccccccccccccccc} \hline \text { Sales after } & 610 & 150 & 790 & 288 & 715 & 465 & 280 & 640 & 500 & 118 & 265 & 365 & 93 & 217 & 280 \\ \hline \text { Sales before } & 460 & 216 & 640 & 250 & 685 & 430 & 220 & 470 & 370 & 118 & 117 & 360 & 93 & 291 & 430 \\ \hline \end{array}$$

Use a 0.01 level of significance to test the null hypothesis that the advertising had no effect on sales against the alternate hypothesis that it improved sales. State the test used.

Seacrest Productions makes all sales on credit. Cash receipts arrive by mail. Justin Broaddus, the mailroom clerk, opens envelopes and separates the checks from the accompanying remittance advices. Broaddus forwards the checks to another employee, who makes the daily bank deposit but has no access to the accounting records. Broaddus sends the remittance advices, which show cash received, to the accounting department for entry in the accounts. Broaddus's only other duty is to grant sales allowances to customers. (A sales allowance decreases the customer's account receivable.) When Broaddus receives a customer check for $225 less a$ 60 allowance, he records the sales allowance and forwards the document to the accounting department.

Requirements

1. Identify the internal control weakness in this situation.
2. Who should record sales allowances?
3. What is the amount that should be shown in the ledger for cash receipts?

Sales Let matrix $A$ represent the sales (in thousands of dollars) for the Walbash Company in $2018$ in various cities, and let matrix $B$ represent the sales (in thousands of dollars) for the same company in $2019$ in the same cities.

$$A=\left[\begin{array}{ccr}\text { Chicago } & \text { Atlanta } & \text { Memphis } \\ 450 & 280 & 850 \\ 400 & 350 & 150\end{array}\right]\begin{array}{c}\text{Wholesale}\\\text{Retail}\end{array}$$

$$B=\left[\begin{array}{ccc}\text { Chicago } & \text { Atlanta } & \text { Memphis } \\ 475 & 300 & 710 \\ 410 & 300 & 200\end{array}\right]\begin{array}{c}\text{Wholesale}\\\text{Retail}\end{array}$$

(a) Write the matrix that represents the total sales by type and city for both years.

(b) Write the matrix that represents the change in sales by type and city from $2018$ to $2019$.