UN EXPATRIE PARLE AUX BRETONS DE GLASGOW Voilà, tout d’abord je me présente rapidement, Jérôme FOHET. J’étudie à Glas gow pour un an. J’écris ce message pour dire qu’il existe un pays où il pleut vraiment tous les jours, et quand je dis tous les jours, c’est tous les jours. Eh bien, oui, vous avez deviné, ce pays c’est l’Ecosse. Cela ressemble vaguement aux côtes d’Armor, la campagne Ecossaise est magnifique, surtout quand on se lève tôt pour aller faire un tour dans la lande. Parfois il est possible d’être effrayé quand au détour d’un chemin, dans le brouillard on croise un berger et son chien. Une chose extraordinaire c’est de voir I’amour des gens de là-bas pour leur pays, ils sont un peu anti-anglais. Il ne faut surtout pas leur dire qu’ils sont anglais car c’est faux; ils sont écossais et fiers de l’être. Pour finir au niveau du sport, iI y a une sacré ambiance dans les pubs quand il y a un match du type Glasgow Rangers contre les Celtics. A bientôt à tous les Bretons. • • • What can you conclude from Jérôme’s description of Scottish pubs?

CoolAir Corporation manufactures portable window air conditioners. CoolAir has the capacity to manufacture and sell 80,000 air conditioners each year but is currently only manufacturing and selling 60,000. The following per unit numbers relate to annual operations at 60,000 units:     Per Unit   Selling price $ 125 Manufacturing costs:     Variable $ 25 Fixed $ 40 Selling and administrative costs:     Variable $ 10 Fixed $ 15   The City of Clearwater would like to purchase 3,000 air conditioners from CoolAir but only if they can get them for $75 each. Variable selling and administrative costs on this special order will drop down to $2 per unit. This special order will not affect the 60,000 regular sales and it will not affect the total fixed costs. The annual financial advantage (disadvantage) for the company as a result of accepting this special order from the City of Clearwater should be:

The Jabba Corporation manufactures the “Snack Buster” which consists of a wooden snack chip bowl with an attached porcelain dip bowl. Which of the following would be relevant in Jabba’s decision to make the dip bowls or buy them from an outside supplier?     Fixed overhead cost that can be eliminated if the bowls are purchased from the outside supplier The variable selling cost of the Snack Buster A) Yes Yes B) Yes No C) No Yes D) No No

Over the last 40 years, the portion of market value related to intangible assets has:

Two of the decentralized divisions of Gamberi Electronics Corporation are the Plastics Division and the Components Division. The Plastics Division sells molded parts to both the Components Division and to customers outside the corporation Assume that the Plastics Division is currently operating with idle capacity. Also assume that the Components Division wants to purchase from Plastics all of the additional parts that could be made with this idle capacity. In order to increase its current level of profitability, the Plastics Division should accept any transfer price on these additional parts that is above the:

Vanikoro Corporation currently has two divisions which had the following operating results for last year:     Cork Division Rubber Division Sales $600,000 $300,000 Variable costs $310,000 $200,000 Contribution margin $290,000 $100,000 Fixed costs for the division $110,000 $60,000 Segment margin $180,000 $40,000 Allocated corporate fixed costs $100,000 $50,000 Net operating income (loss) $80,000 ($10,000)   Since the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the fixed costs for the division could be eliminated if the division was dropped. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro’s total net operating income have been for the year?

McNeilly Inc. is considering using stocks of an old raw material in a special project. The special project would require all 220 kilograms of the raw material that are in stock and that originally cost the company $1,804 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8.55 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $7.75 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $97.00 for all 220 kilograms. What is the relevant cost of the 220 kilograms of the raw material when deciding whether to proceed with the special project? 

Routsong Company had the following sales and production data for the past four years:     Year 1 Year 2 Year 3 Year 4 Production in units 6,000 9,000 4,000 5,000 Sales in units 6,000 6,000 5,000 7,000   Selling price per unit, variable cost per unit, and total fixed cost are the same in each year. Which of the following statements is not correct?

Why is a balanced scorecard critical when evaluating a firm with significant intangibles?

The LaGrange Corporation had the following budgeted sales for the first half of the current year:     Cash Sales   Credit Sales January $ 70,000 $ 340,000 February $ 50,000 $ 190,000 March $ 40,000 $ 135,000 April $ 35,000 $ 120,000 May $ 45,000 $ 160,000 June $ 40,000 $ 140,000   The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be: