Roland company operates a small factory in which it manufactures two products: a and b. production and sales result for last year were as follow:

a b
units sold 8,000 16,000
selling price per unit 65 52
variable costs per unit 35 30
fixed costs per unit 15 15

for purposes of simplicity, the firm allocates total fixed costs over the total number of units of a and b produced and sold.

the research department has developed a new product (c) as a replacement for product b. market studies show that roland company could sell 11,000 units of c next year at a price of $80, the variable costs per unit of c are $39. the introduction of product c will lead to a 10% increase in demand for product a and discontinuation of product b. if the company does not introduce the new product, it expects next year's result to be the same as last year's.

1. calculate the net profit if roland company introduces product c.

2. should roland introduce product c ?

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

What two things do you consider when evaluating the time value of money

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups.b. we cannot infer anything from these data since the distribution of salaries is likely right skewed.c. you cannot draw any valid conclusions because the sample sizes are different.d. more students should complete internships because having an internship produces a higher salary.