Pittman company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to markets its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman's controller, has just prepared the company's budgeted income statement for next year. The statement follows:
Sales..........................................$16,000,000
Manufacturing expenses:
variable....................$7,200,000
fixed overhead...........2,340,000...........$9,540,000
Gross Margin........................................6,460,000
Selling and Admin expenses
commissions to agents...2,400,000
fixed marketing expenses..120,00
Fixed admin expenses........1,800,000......4,320,000
Net operating income..............................2,140,000
Fixed interest expenses............................540,000
Income before income taxes......................1,600,000
incomes taxes (30%)................................480,000
Net income..............................................1,120,000
This statement was made using agents 15% commission rate, but next year will increase to 20%. Several companies they know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, they have to handle promotional cost, too. They figure their fixed expenses would increase by $2,400,000 per year, but that would be more than offset by the $3,200,000 (20% X $16,000,000) that they would avoid on agents' commissions.
The break down of the $2,400,000 cost follows:
Salaries
Sales manager....................$100,000
Salespersons.......................600,000
Travel and entertainment........400,000
Advertising............................1,300,000
Total......................................$2,400,000
They save $75,000 a year because that's what they are having to pay the auditing firm now to check out the agents' reports. So administration expenses would be less.
1.) Compute pittman company's break-even point in dollar sales for next year assuming:
a. the agents' commission rate remains unchanged at 15%
b. the agents' commission rate is increased to 20%.
c. the company employs its own sales force
2.) assume that pittman company decided to continue selling through agents and pays the 20% commission rate. Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year.
3.)Determine the volume of sales at which net income would be equal regardless of whether pittman company sells through agents (at 20% commission rate) or employs its own sales force.
4.) Compute the degree of operating leverage that the company would expect to have on December 31 at the end of next year assuming:
a. the agents' commission rate remains unchanged at 15%
b. the agents' commission rate is increased at 20%
c. the company employs its own sales force
-use income BEFORE income taxes in your operating leverage computation
5.) Based on the data in (1) through (4) above, make a recommendation as to whether the company should continue to use sales agents (at 20% commission rate) or employ its own sales force. Give reasons for your answer
Download Pittman company tutorial A+ solution with calculations : Click HERE
NET PRESENT VALUE ANALYSIS : The following are data for two IT projects for a new database system. Prepare a spreadsheet for two projects, using the following data.
NET PRESENT VALUE ANALYSIS
Instructions: You may use the software tools available to you,
including Microsoft Excel, Word, PowerPoint, and Project, as needed. Please include your answers and other results
in this document in a different color.
1.The following are data for two IT projects for a
new database system. Prepare a spreadsheet for two projects, using the
following data. Amounts are in thousands of dollars. Calculate the NPV for
each. (Please assume a Discount Rate of 10%)
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Total
|
|
|
Project 1
|
||||||
|
Benefits
|
$0
|
$2,000
|
$3,000
|
$4,000
|
$5,000
|
tbd
|
|
Costs
|
$5,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
tbd
|
|
Cashflow
|
($5,000)
|
$1,000
|
$2,000
|
$3,000
|
$4,000
|
$5,000
|
|
Project 2
|
||||||
|
Benefits
|
$2,000
|
$3,000
|
$5,000
|
$3,000
|
$1,000
|
tbd
|
|
Costs
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$1,000
|
tbd
|
|
Cashflow
|
$0
|
$1,000
|
$3,000
|
$1,000
|
$0
|
$5,000
|
2. Prepare a precedence diagram for the
following tasks. All tasks have a finish-to-start relationship.
|
Task
|
Duration
|
Preceded By
|
Followed By
|
|
A
|
1
|
None
|
B, C, D
|
|
B
|
2
|
A
|
E
|
|
C
|
3
|
A
|
E, F
|
|
D
|
4
|
A
|
G
|
|
E
|
5
|
B, C
|
F
|
|
F
|
6
|
C
|
H
|
|
G
|
7
|
D
|
H
|
|
H
|
8
|
E, F, G
|
None
|
3. Prepare a Gantt chart for the tasks
shown for question 2. (This can be hand drawn if you have no software to make
it, and then you can take a picture of your drawing and included it in this
document as an image).
4. Determine the critical path for the
tasks shown for question 2.
5. Your company is planning to launch a new IT
project starting July 1 that will last one year. You estimate that you will
need one full-time project manager, two full-time business analysts for the
first six months, two full-time senior systems analysts for the whole year,
four programmers for the months of February-May, and one full-time technical
writer for the last three months. Create a stacked column chart using Excel that
shows resources by month. Provide appropriate titles, axes labels, and legends.
6. Take the MBTI. There are several websites
you can use: www.humanmetrics.com, www.personalitytype.com, and
www.kiersey.com. Write a one-page summary discussing your MBTI type and its
opposite MBTI type. For example, if you are an INTJ, then its opposite is ESFP.
What challenges would you see working with this person on a project? What you
think about the MBTI as a team-building tool?
7. Your IT consulting company is trying to
decide which of four projects to bid. Information on each is in the table
below. Assume that all up-front investments are not recovered, so they are
shown as negative profits. Draw a diagram and calculate the expected monetary
value (EMV) for each project. Write a paragraph explaining which project(s) you
would choose to bid.
|
Project
|
Chance of
Outcome |
Estimated
Profit |
|
Project
1
|
50%
50% |
$120,000
-$50,000 |
|
Project
2
|
30%
40% 30% |
$100,000
$50,000 -$60,000 |
|
Project
3
|
70%
30% |
$20,000
-$5,000 |
|
Project
4
|
30%
30% 20% 20% |
$40,000
$30,000 $20,000 -$50,000 |
8. Your company has a technical support line
for customers to call. Create a Pareto diagram based on the information in the
following table. Create a spreadsheet using these data. List the most frequent
complaint first. Then add a column labeled "% of Total" and another
labeled "Cumulative %". Then enter formulas to calculate these items.
Then use the Excel Chart Wizard to create a Pareto diagram based on the data.
Use the Line - Column on 2 Axis custom type chart so that your resulting chart
looks similar to the one in Figure 8-1.
|
Customer
Complaints
|
Frequency/Week
|
|
Customer
is on hold too long
|
90
|
|
Customer
gets transferred to wrong number
|
20
|
|
Customer
gets cut off
|
50
|
|
Service
rep cannot answer customer's question
|
120
|
|
Service
rep does not follow through as promised
|
40
|
|
Service
rep is rude
|
10
|
9. Use the following WBS and duration
information for a project to build a new website. Prepare a Gantt chart and a
precedence diagram. Determine the critical path.
|
1.
|
Initiating
|
1 week
|
|
|
2.
|
Planning
|
4
weeks, starting after Initiating ends
|
|
|
3.
|
Executing
|
||
|
3.1
Conduct User Interview
|
6
weeks, starts after Initiating ends
|
||
|
3.2
Conduct User Survey
|
4
weeks, starts midway through User Interviews
|
||
|
3.3
Site Content
|
|||
|
3.3.1
Develop Templates
|
12
weeks, starts after User Interviews and User Survey end
|
||
|
3.3.2
Write Articles
|
8
weeks, stats anytime after Site Content begins
|
||
|
3.3.3
Prepare FAQ
|
2
weeks, starts after User Interviews and User Survey ends
|
||
|
3.4
Design Site
|
8
weeks, starts after User Interviews and User Survey end
|
||
|
3.5
Build Site
|
16
weeks, starts after Design Site ends
|
||
|
3.6
Perform Integration Testing
|
2
weeks, starts after Build Site ends
|
||
|
3.7
Conduct Acceptance Tests
|
2
weeks, starts after Integration Testing ends
|
||
|
4.
|
Controlling
|
runs
for entire duration of project
|
|
|
5.
|
Closing
|
1
weeks, follows Acceptance Testing
|
|
10. Using the following information for a
one-year software development project, answer the following four questions.
PV = $23,000
EV = $20,000
AC = $25,000
BAC = $120,000 - What are the
cost variance, schedule variance, cost performance index, and schedule
performance index for the project?
- How is the
project doing? Is it ahead of schedule or behind? Is it under budget or
over?
- Use CPI to
calculate the estimate at completion (EAC)? Is the project performing
better or worse than planned?
- Use SPI as
your guide, how long will it take to finish the project?
DOWNLOAD A+ FULL TUTORIAL : CLICK HERE
The two types of data requirements required in accounts receivable bookkeeping are
1. The two types of data
requirements required in accounts receivable bookkeeping are _______ and
_______ information.
A. legal; practice
A. legal; practice
B. patient; practice
C. practice; dentist
D. patient; legal
2. The management, verification, and prompt payment of a dental
office's expenses for supplies, payroll, rent, and similar costs is called
A. computerized information.
B. accounts receivable bookkeeping.
B. accounts receivable bookkeeping.
C. file management.
D. accounts payable bookkeeping.
D. accounts payable bookkeeping.
3. What is the most effective
inventory system for a small dental office?
A. A combination of manual and
computer systems
B. A well-organized manual system
C. A pegboard
D. A computerized system
B. A well-organized manual system
C. A pegboard
D. A computerized system
4. What should a patient's chart
include?
A. Business correspondence concerning the patient's financial standing
A. Business correspondence concerning the patient's financial standing
B. The outstanding balance due on
the patient's account
C. The medical and dental history of the patient
D. A patient registration form
C. The medical and dental history of the patient
D. A patient registration form
5. Medicaid is a program governed
by the
A. U.S. government.
B. National Consumer's Board.
C. American Dental Association.
D. insurance carriers.
A. U.S. government.
B. National Consumer's Board.
C. American Dental Association.
D. insurance carriers.
6. When contacting patients to
set up appointments, how should you talk to them?
A. In a very strict, businesslike
tone
B. In an enthusiastic and cheerful tone
C. In a condescending tone as you point out all the patient's dental problems.
D. In hurried manner so you can get on to making other calls
B. In an enthusiastic and cheerful tone
C. In a condescending tone as you point out all the patient's dental problems.
D. In hurried manner so you can get on to making other calls
7. A filing system must be
organized and maintained so that records are
A. adequately protected and easy to retrieve.
B. easily accessible by patients.
C. retrievable by full-time help only.
D. accessible by a special password only.
B. easily accessible by patients.
C. retrievable by full-time help only.
D. accessible by a special password only.
8. Other than a collection
agency, how else could you attempt to collect small overdue accounts?
A. Placing a lien on the indebted
patient's properties
B. Suing the indebted patient for negligence
C. Taking your case to Small Claims Court
D. Contacting the police
B. Suing the indebted patient for negligence
C. Taking your case to Small Claims Court
D. Contacting the police
9. A payment code file by letter
is the organization of codes that's used in a
A. pegboard system.
B. computerized system.
C. credit card system.
D. fully automated system.
B. computerized system.
C. credit card system.
D. fully automated system.
10. When ordering supplies, what
guideline should be followed?
A. Backorder all supplies.
B. Never give a purchase order number to a supplier.
C. Telephone in your orders when you use the last of your supply.
D. Be prepared with specific quantities and details when ordering.
B. Never give a purchase order number to a supplier.
C. Telephone in your orders when you use the last of your supply.
D. Be prepared with specific quantities and details when ordering.
11. Planning ahead, keeping it
simple, checking your spelling, and style selection are the steps involved in
A. planning an office party.
B. writing better letters.
C. sending greeting cards.
D. entering data on the computer.
B. writing better letters.
C. sending greeting cards.
D. entering data on the computer.
12. The most widely used manual
bookkeeping system for dental practices is the
A. posting system.
B. pegboard.
C. computer.
D. audit trail.
A. posting system.
B. pegboard.
C. computer.
D. audit trail.
13. In a divided payment plan,
the total fee for the planned treatment is paid in
A. variable installments.
B. four or five installments.
C. one month.
D. two or three installments.
B. four or five installments.
C. one month.
D. two or three installments.
14. Which one of the following
groups of three names is in alphabetical order?
A. David John Sanderson, Jr. David John Sanderson, Sr. Becky Anne St. John
B. Becky Anne St. John David John Sanderson, Jr. David John Sanderson, Sr.
C. Becky Anne St. John David John Sanderson, Sr. John Sanderson, Jr.
D. David John Sanderson, Sr. David John Sanderson, Jr. Becky Anne St. John
A. David John Sanderson, Jr. David John Sanderson, Sr. Becky Anne St. John
B. Becky Anne St. John David John Sanderson, Jr. David John Sanderson, Sr.
C. Becky Anne St. John David John Sanderson, Sr. John Sanderson, Jr.
D. David John Sanderson, Sr. David John Sanderson, Jr. Becky Anne St. John
15. When a dental patient enters
the office, what should a dental assistant do?
A. Address him or her promptly and pleasantly.
B. Make him or her wait until there are at least four or five other patients in the waiting room.
B. Make him or her wait until there are at least four or five other patients in the waiting room.
C. Call the patient by his or her
first name.
D. Sit down with the patient and
catch up on the events of his or her life.
16. What is the combination
recall system also known as?
A. The List-By-Month Recall
System
B. The Recall Tracking System
C. The Complete Recall System
D. The Advanced Recall System
B. The Recall Tracking System
C. The Complete Recall System
D. The Advanced Recall System
17. When should the process of
notifying recall patients by telephone begin?
A. End of the month
B. Middle of the month
C. No special time of the month
D. Beginning of the month
B. Middle of the month
C. No special time of the month
D. Beginning of the month
18. Charge slips are also known
as
A. encounter forms.
B. receipts.
C. monthly statements.
D. posting records.
A. encounter forms.
B. receipts.
C. monthly statements.
D. posting records.
9. When is the best time for a
financial arrangement to be made?
A. At the second appointment
B. Before any treatment is given
C. At the time of prophy
D. After the first examination
B. Before any treatment is given
C. At the time of prophy
D. After the first examination
20. You must send a monthly
statement to a patient. According to the U.S. Postal Service guidelines, which
lines should you use to address the envelope? (Remember to use the correct
order.)
A. Date line; address line; and city and state lines with area code
A. Date line; address line; and city and state lines with area code
B. Address line; city, state, and
zip code lines; and attention line
C. Attention line; and city,
state, and zip code lines
D. Attention line; address line; and city, state, and zip code lines
D. Attention line; address line; and city, state, and zip code lines
21. Which one of the following
statements about the symbols used to record clinical data on a charting diagram
is true?
A. They're based on dental licensing guidelines.
B. They vary from state to state.
C. They can be based on the dentist's personal preference.
A. They're based on dental licensing guidelines.
B. They vary from state to state.
C. They can be based on the dentist's personal preference.
D. They're regulated by federal
guidelines.
22. Where should a metal file
signal be placed on a card when a supply must be ordered?
A. Bottom left corner
B. Upper left corner
C. Upper right corner
D. Bottom right corner
B. Upper left corner
C. Upper right corner
D. Bottom right corner
23. Who owns the information
contained within the patient's dental records?
A. The dentist
B. The government
C. The patient
D. The insurance company
B. The government
C. The patient
D. The insurance company
24. The final decision to turn
cases over to a collection agency is made by the
A. accounts receivable manager.
B. dentist.
C. insurance clerk.
D. office manager.
B. dentist.
C. insurance clerk.
D. office manager.
25. An insurance company that
agrees to pay benefits claimed under a dental plan is called a
A. caregiver.
B. copayer.
C. settler.
D. carrier.
A. caregiver.
B. copayer.
C. settler.
D. carrier.
26. The inventory control card,
file box, metal file signals, and red flag reorder tags are all parts of which
system?
A. Folder inventory system
B. Chronological filing system
C. Depreciated equipment inventory system
A. Folder inventory system
B. Chronological filing system
C. Depreciated equipment inventory system
D. Card-file inventory system
27. Which one of the following
statements about consumable supplies is true?
A. They're used over a long
period of time.
B. They're depreciated over time.
C. They're used up fairly quickly.
D. They're in high demand by dental offices everywhere.
B. They're depreciated over time.
C. They're used up fairly quickly.
D. They're in high demand by dental offices everywhere.
28. You just completed a recall
tracking card for a new patient, Maria Jackson. The month of recall is October.
How should you file this card?
A. Alphabetically under "Jackson"
A. Alphabetically under "Jackson"
B. Alphabetically under
"Maria"
C. Chronologically under "October"
C. Chronologically under "October"
D. Chronologically under "February"
29. Which one of the following
examples is a disadvantage of using the advance appointment system?
A. It creates a definite
appointment.
B. The patient is committed to return for the next visit.
C. Appointments are frequently broken, cancelled, or changed.
D. It fills up your calendar months in advance and doesn't leave room for any emergency patients.
B. The patient is committed to return for the next visit.
C. Appointments are frequently broken, cancelled, or changed.
D. It fills up your calendar months in advance and doesn't leave room for any emergency patients.
30. A code that's used to
describe a dental procedure is
A. EOB.
B. IPA.
C. CDT-1.
D. COB.
B. IPA.
C. CDT-1.
D. COB.
31. The last patient treated by
your employer, Dr. Santiago, just gave you $25 in partial payment for her
prophylaxis and examination bill of $45. What should you give her before she
leaves?
A. Only a walk-out statement for $20
B. Only a receipt for $25
C. A receipt for $25, a walk-out statement for $20, and a reply envelope
A. Only a walk-out statement for $20
B. Only a receipt for $25
C. A receipt for $25, a walk-out statement for $20, and a reply envelope
D. A receipt for $25, a walk-out
statement for $45, and a reply envelope
32. The time span between
appointments is determined by the
A. patient.
B. laws of the state.
C. dentist.
D. American Dental Association.
A. patient.
B. laws of the state.
C. dentist.
D. American Dental Association.
33. What is the means by which
bookkeeping entries are made accurately and honestly?
A. Audit trails
B. Credit card slips
C. Ledger cards
D. Discounts
B. Credit card slips
C. Ledger cards
D. Discounts
34. Which one of the following
charge codes are used to simplify posting transaction data in the bookkeeping
system?
A. Charge, fee, and payment
B. Overdue, payment, and adjustment
A. Charge, fee, and payment
B. Overdue, payment, and adjustment
C. Adjustment, overdue, and fee
D. Charge, payment, and adjustment
D. Charge, payment, and adjustment
35. When is usually the best time
of day for scheduling very young children?
A. Before lunch
B. The middle of the day
C. In the early evening
D. Early in the morning
B. The middle of the day
C. In the early evening
D. Early in the morning
36. Periodically reminding
patients that it's time to return to the dentist for a checkup or for follow-up
care is called
A. telephoning.
A. telephoning.
B. greeting.
C. recall.
D. notification.
C. recall.
D. notification.
37. What should you do if you
make a mistake while entering a service rendered?
A. Legibly write over the error.
B. Erase the error.
C. Draw a line through the error.
D. Blacken the entry completely.
B. Erase the error.
C. Draw a line through the error.
D. Blacken the entry completely.
38. How many parts does an
accounts receivable bookkeeping system have?
A. 5
B. 3
C. 2
D. 10
B. 3
C. 2
D. 10
39. In which situation is it
advised to use a federal Truth in Lending form?
A. When there's extensive treatment involved
B. When the payment is made by credit card
C. When there's a finance charge and/or four or more payments D. When there's no finance charge
A. When there's extensive treatment involved
B. When the payment is made by credit card
C. When there's a finance charge and/or four or more payments D. When there's no finance charge
40. What is the correct procedure
for transferring a patient's record?
A. Send only the original radiographs.
B. Refuse to send the records even if ordered by the courts to do so.
C. Send a photocopy of the chart.
D. Refuse to transfer the records if a balance is owed.
A. Send only the original radiographs.
B. Refuse to send the records even if ordered by the courts to do so.
C. Send a photocopy of the chart.
D. Refuse to transfer the records if a balance is owed.
41. A patient's registration form
includes the patient's
A. sex, date of birth, and
relationship to the insured.
B. health history.
C. list of treatments rendered.
D. names of all previous dentists.
B. health history.
C. list of treatments rendered.
D. names of all previous dentists.
42. The reorder point is based on
what factors?
A. Rate of use, lead time, and margin of safety
B. The types of inventory storage you have
C. The type of supplier you must contact for inventory D. The dentist's preference
B. The types of inventory storage you have
C. The type of supplier you must contact for inventory D. The dentist's preference
43. Where should the daily
appointment schedule be posted?
A. On the dental office door
B. In the waiting room
C. On the receptionist's desk for patients to see
D. In the dentist's private office
B. In the waiting room
C. On the receptionist's desk for patients to see
D. In the dentist's private office
44. When reconciling a bank
statement, what should you verify?
A. Debits, deposits, and cancelled checks
B. The date of each cancelled check
C. The identity of the person who signed all the checks
D. Only the outstanding checks
B. The date of each cancelled check
C. The identity of the person who signed all the checks
D. Only the outstanding checks
45. A jagged line across a tooth
surface indicates that the tooth
A. is impacted.
B. is fractured.
C. has an area of decay.
D. must be extracted.
B. is fractured.
C. has an area of decay.
D. must be extracted.
46. Which one of the following
communication skills is the most useful skill for a dental assistant to have?
A. Keeping the patient quiet until he or she is treated B. Getting the patient's mind off the appointment
C. Diagnosing the problem
D. Concentrating on listening
A. Keeping the patient quiet until he or she is treated B. Getting the patient's mind off the appointment
C. Diagnosing the problem
D. Concentrating on listening
47. The recording and management
of all patient account transactions within a dental office is called
A. patient filing.
B. accounts payable bookkeeping.
C. accounts receivable bookkeeping.
D. financial bookkeeping.
B. accounts payable bookkeeping.
C. accounts receivable bookkeeping.
D. financial bookkeeping.
48. When should the patient's
chart and radiographs be obtained from the file?
A. Before the patient's visit
B. As soon as the patient enters the office
C. During the patient's appointment time
D. After the patient leaves the office
B. As soon as the patient enters the office
C. During the patient's appointment time
D. After the patient leaves the office
49. The two major groups of
records found in a dental office are _______ records and _______ records. A.
tax; patient
B. business; patient
C. business; actuary
D. actuary; tax
B. business; patient
C. business; actuary
D. actuary; tax
50. Sending greetings such as
birthday and sympathy cards to patients lets the patients know that
A. the doctor cares about them.
B. they're due for a checkup.
C. the doctor is using the card to obtain future business.
D. the doctor's secretary cares about them.
A. the doctor cares about them.
B. they're due for a checkup.
C. the doctor is using the card to obtain future business.
D. the doctor's secretary cares about them.
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