Q1- In 2017, the Restaurant Hospitality website reported that only 11% of surplus food is being recovered in the food service and restaurant sector, leaving approximately 1.5 billion meals per year uneaten. Assume that this is the true population proportion and that you plan to take a sample survey of 525 companies in the food service and restaurant sector to further investigate their behavior. You suspect that restaurants are doing a far better job in recovering surplus food than what has been reported by the website.
Suppose that based on the sample you collected restaurants report an average of 59 surplus meals per day of which an equivalent of 51 meals is thrown away. Respond to the following questions:
a. Set up the research question and hypotheses. – Let’s set up Accounting related question.
b. Calculate the p-value using the “Norm.dist” Excel command.
c. What is your conclusion?
Q2- A computer manufacturer needs 7,500 units of a component to complete an order for a distributor. If done in-house, the fixed cost would be$325,000 with variable cost at $25 per unit. Alternative two is to outsource for a total cost of $75 per unit with a set-up/tooling cost of $50,000 (fixed cost). The selling price for the item is $110. Answer the following questions:
a. Determine the breakeven quantity for each alternative.
b. Determine the breakeven quantity between the two alternatives. In other words, at what level of production the company would be indifferent between outsourcing the order and in-house production.
c. For the current order, should they make the item in-house or outsource it?
d. At what order quantity would it become optimal to make the item in-house rather than outsourcing it?