Lab8 For the circuit of example 10-6 Without the AC signal The AC voltage drop applied to the base is given by Figure 1 Figure 1 shows the value of the AC signal fed to the base of transistor. It varies greatly from the theoretical value because while the theoretical calculation procedure only puts into consideration the resistor in the path between the signal source and ground, the signal experiences a circuit comprising several resistors connected in parallel. It is also affected by the relatively large DC current flowing from the DC source to the base. The signal experiences low resistance paths in some cycles where the current flowing from the DC source tends to cancel out the signal current, giving rise to the low signal voltage at the voltage-divider junction The coupling capacitor also offers some reactance which was neglected in finding the theoretical value and thus contributed to the error. Figure 2 The experimental value of output voltage is slightly larger than the theoretical value. This can be explained by the fact that the capacitors were treated as short-circuits while in real sense they offer reactance to the flow of the AC current. The feedback capacitor contributes very little to this since it is in parallel with a low resistance component which brings the effective impedance of that section close to zero. The decoupling capacitor on the other hand is connected in series with a resistor. If included, the reactance would have contributed to a larger impedance and thus a larger volt drop in the output circuit. Answers to the essay questions should be concise. For the problems you must show work. Submit answers using either Word or Excel. Make sure to label answers. The answer to a question must be either all Word or all Excel for that particular question. Format the Excel portion of the exam so that it may be easily printed. 1. (8 points) Pretty Lady is an upscale boutique that operates various stores throughout Florida. The company, which has three divisions (Miami, Naples, and Tampa), reported the following information for the year just ended (in thousands):    Pretty Lady also reported $600 of common fixed expenses that top management wants to allocate to the divisions on the basis of sales revenue. As the company's chief executive officer notes, "Each division helped to incur a portion of these costs and, as a result, each should absorb its fair share." The firm has adopted various responsibility accounting procedures to evaluate division personnel. Required: A. Compute the company's total sales revenue. B. Calculate the amount of variable operating expense incurred by the Naples Division. C. Calculate the fixed costs controllable by Miami's management. D. Calculate the fixed costs traceable to the Tampa Division but controllable by others. E. Pretty Lady desires to promote a division manager to the corporate office to oversee selected operations. In determining which individual to promote, shou ...

1. Lab8
For the circuit of example 10-6
Without the AC signal
The AC voltage drop applied to the base is given by
Figure 1
Figure 1 shows the value of the AC signal fed to the base of
transistor. It varies greatly from the theoretical value because
while the theoretical calculation procedure only puts into
consideration the resistor in the path between the signal source
and ground, the signal experiences a circuit comprising several
resistors connected in parallel. It is also affected by the
relatively large DC current flowing from the DC source to the
base. The signal experiences low resistance paths in some
cycles where the current flowing from the DC source tends to
cancel out the signal current, giving rise to the low signal
voltage at the voltage-divider junction
The coupling capacitor also offers some reactance which was
neglected in finding the theoretical value and thus contributed
to the error.
Figure 2

2. The experimental value of output voltage is slightly larger than
the theoretical value. This can be explained by the fact that the
capacitors were treated as short-circuits while in real sense they
offer reactance to the flow of the AC current. The feedback
capacitor contributes very little to this since it is in parallel
with a low resistance component which brings the effective
impedance of that section close to zero. The decoupling
capacitor on the other hand is connected in series with a
resistor. If included, the reactance would have contributed to a
larger impedance and thus a larger volt drop in the output
circuit.
Answers to the essay questions should be concise. For the
problems you must show work. Submit answers using either
Word or Excel. Make sure to label answers. The answer to a
question must be either all Word or all Excel for that particular
question. Format the Excel portion of the exam so that it may
be easily printed.
1. (8 points) Pretty Lady is an upscale boutique that operates
various stores throughout Florida. The company, which has
three divisions (Miami, Naples, and Tampa), reported the
following information for the year just ended (in thousands):
Pretty Lady also reported $600 of common fixed expenses that
top management wants to allocate to the divisions on the basis
of sales revenue. As the company's chief executive officer
notes, "Each division helped to incur a portion of these costs
and, as a result, each should absorb its fair share." The firm has
adopted various responsibility accounting procedures to
evaluate division personnel.
Required:

3. A. Compute the company's total sales revenue.
B. Calculate the amount of variable operating expense incurred
by the Naples Division.
C. Calculate the fixed costs controllable by Miami's
management.
D. Calculate the fixed costs traceable to the Tampa Division but
controllable by others.
E. Pretty Lady desires to promote a division manager to the
corporate office to oversee selected operations. In determining
which individual to promote, should Pretty Lady's top
management focus on the profit margin controllable by the
division manager or the overall divisional profit margin?
Briefly explain.
F. If the company follows the desires of top management, how
much of the common fixed expenses would be allocated to the
Tampa Division?
G. Do cost allocations such as those in part "F" typically appear
on a segmented income statement?
2. (6 points) Lee-Vie Company has met all production
requirements for the current month and has an opportunity to
manufacture additional units with its excess capacity. Unit
selling prices and unit costs for three product lines follow.
Variable overhead is applied on the basis of direct labor dollars,
whereas fixed overhead is applied on the basis of machine
hours. There is sufficient demand for the additional manufacture
of all products.
Required:
A. If Lee-Vie has excess machine capacity and can add more
labor as needed (i.e., neither machine capacity nor labor is a
constraint), which product is the most attractive to produce?
B. If Lee-Vie has excess machine capacity but a limited amount
of labor time available, which product or products should be

4. manufactured in the excess capacity?
3. (6 points) Greg Smithson builds custom homes in Cincinnati.
Smithson was approached not too long ago by a client about a
potential project, and he submitted a bid of $590,000, derived as
follows:
Smithson adds a 25% profit margin to all jobs, computed on the
basis of total cost. In this client's case the profit margin
amounted to $118,000 ($472,000 25%), producing a bid price
of $590,000. Assume that 60% of construction overhead is
fixed.
Required:
A. Suppose that business is presently very slow, and the client
countered with an offer on this home of $455,000. Should
Smithson accept the client's offer? Why?
B. If Smithson has more business than he can handle, how much
should he be willing to accept for the home? Why?
4. (8 points) Eagle Airways Company is planning a project that
is expected to last for six years and generate annual net cash
inflows of $75,000. The project will require the purchase of a
$280,000 machine, which is expected to have a salvage value of
$10,000 at the end of the six-year period. The machine will
require a $50,000 overhaul at the end of the fourth year. The
company presently has a 12% minimum desired rate of return.
Based on this information, an accountant prepared the following
analysis:
The accountant recommends that the project be rejected because
it does not meet the company's minimum desired rate of return.
Ignore income taxes.
Required:
A. What criticism(s) would you make of the accountant's
evaluation?

5. B. Use the net-present-value method and determine whether the
project should be accepted.
C. Based on your answer in requirement "B," is the internal rate
of return greater or less than 12%? Explain.
5. (8 points) Jasper Corporation is organized in three separate
divisions. The three divisional managers are evaluated at year-
end, and bonuses are awarded based on ROI. Last year, the
overall company produced a 12% return on its investment.
Managers of Jasper's Iowa Division recently studied an
investment opportunity that would assist in the division's future
growth. Relevant data follow.
Required:
A. Compute the current ROI of the Iowa Division and the
division's ROI if the investment opportunity is pursued.
B. What is the likely reaction of divisional management toward
the acquisition? Why?
C. What is the likely reaction of Jasper's corporate management
toward the investment? Why?
D. Assume that Jasper uses residual income to evaluate
performance and desires an 11% minimum return on invested
capital. Compute the current residual income of the Iowa
Division and the division's residual income if the investment is
made. Will divisional management likely change its attitude
toward the acquisition? Why?
6. (6 points) Gamma Division of Vaughn Corporation produces
electric motors, 20% of which are sold to Vaughan's Omega
Division and 80% to outside customers. Vaughn treats its
divisions as profit centers and allows division managers to
choose whether to sell to or buy from internal divisions.
Corporate policy requires that all interdivisional sales and
purchases be transferred at variable cost. Gamma Division's
estimated sales and standard cost data for the year ended
December 31, based on a capacity of 60,000 units, are as
follows:

6. Gamma has an opportunity to sell the 12,000 units shown above
to an outside customer at $80 per unit. Omega can purchase the
units it needs from an outside supplier for $92 each.
Required:
A. Assuming that Gamma desires to maximize operating
income, should it take on the new customer and discontinue
sales to Omega? Why? (Note: Answer this question from
Gamma's perspective.)