The accountant at Cedric Company has determined that income before income taxes amounted to $7,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $315 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

Answer:

D. Integration of different types of businesses through merger or acquisition

Explanation:

Externalities occur when the production or consumption of a particular good or service affects a third-party who is not related to the transaction. A positive externality is one that is favorable and beneficial to the third party and a negative externality is one that is unfavorable and creates a cost to the third party. In this case, the third party is the owner of the cafe and it is a positive externality because the music creates an increase in the number of customers to his/her business.

When the jazz club owner purchases/acquires the cafe, the cafe becomes his. Hence, the benefit felt to the cafe by the music from the jazz club is a benefit that his own new business incurs. Thus, the integration of these two businesses into one helps internalize the positive externality since now the main party involved in the transaction is also the one feeling the positive externality and not a third-party as used to be.

The jazz club owner has internalized the positive externality by purchasing the cafe, representing a private solution of integration through merger or acquisition.

In the scenario provided, the cafe experiences a positive externality from the jazz club's music, which leads to an increase in customers when appealing music is played. The jazz club owner decides to internalize this positive externality by purchasing the cafe, so that he can benefit directly from the increased customer flow that the music provides to the cafe. This type of private solution to the externality of appealing music is an example of integration of different types of businesses through merger or acquisition. This move ensures that the benefits associated with the music are fully captured by the jazz club owner, now owner of both establishments, and is a textbook example of a business solution to manage externalities.

Answer:

C) Both a) and b)

Explanation:

Exchange rate risk is a type of risk which is now present in mostly the emerging or the developing countries. If a company is operating in an emerging economy and suddenly the local currency of that country depreciates than it can favor the company as the exports will now be more cheap than before and will give competitive advantage to that firm. The vice versa will happen when the currency appreciates.

Hence, it is now important for every company to carefully manage their exchange rate risk as well as measure the risk associated with that.

Thank You.

Answer:

The adjusting entries are as follows

Explanation:

The adjusting entries are as follows

1. Sales return Dr $195,000

         To Refund liabilities $195,000

(Being the sales return is recorded)

It is computed below:

= $10,500,000 × 9% - $750,000

= $195,000

2. Inventory estimated returns Dr $136,500  

       To Cost of goods sold $136,500  

(Being the inventory estimated return is recorded)

It is computed below:

= $195,000 × 70%

= $136,500

Final answer:

To account for the anticipated sales returns, an adjusting journal entry is made. This involves debiting the Sales Returns and Allowances account and crediting the Sales Revenue account by the estimated return amount.

Explanation:

To account for the anticipated sales returns, we need to make an adjusting journal entry at the end of the year. Since the company estimates that 9% of sales will be returned, we need to calculate the estimated return amount. In this case, the estimated return amount is $10,500,000 * 9% = $945,000.

Now, let's make the adjusting journal entry. The first step is to debit the Sales Returns and Allowances account for the estimated return amount of $945,000. The offsetting credit entry is made to the Sales Revenue account, reducing it by the same amount. So, we credit the Sales Revenue account for $945,000.

The journal entry would be:

Answer:

Amos Company

Statement of retained earning

as on December 31, 2017

Retained Earning December 31, 2016    $859,000

Add: Net Income for 2018                       $223,000

Dividend                                                  -$29,000

Prior years error adjustment                  -$37,600  

Retained Earning December 31             $1,015,400

Explanation:

Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.

Omission of depreciation expense understated the expenses for the year and overstated the profit of 2015, which ultimately overstated the retained earning value. we need to adjust this error in retained earning balance because it is adjustment of an prior year error, it will not be included in the current years net income calculations. It already netted off so we just simply adjust it in the retained earning with the value of $37,600.

Answer:

Explanation:

First we have to understand what is a consumer. A consumer is that person who purchases a goods or services for personal use.

1. Early adopters. (first adopters)

2. Innovators. (first adopters)

3. Early Majority. (first adopters)

4. Late majority. ( Last adopters)

5. Laggard. ( Last adopters)

2. a. High-income people who have inherited their wealth. ( Laggard)

b. Future oriented Below-average-income wage earners ( Innovators)

c. Present (security) oriented High-income people who have incomes from salary and investment. ( Late majority)

d. Highest professionals, including merchants and financiers. ( Last majority )

e. Present oriented Average-income wage earners. ( Early adopters)

f. Middle managers and owners of medium-sized businesses. ( Early Majority)

g. Above-average-income wage earners. ( early adopters)

h. Present oriented, but worried about the impact of time. (Late majority)

I. Unskilled labor Skilled labor. (Innovators)

J. Owners of small businesses; non-managerial office and union managers. ( early adopters)

K. Tradition-oriented people who often live in the past. (Laggard)

Answer:

high,high

not all prices adjust quickly

below

Explanation:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.

Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

As people observe the lower price level, the economy returns to the long-run aggregate supply curve.

According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.

As people observe the lower price level, their expectations adjust.

Answer:

The correct answer is letter "B": learner characteristics.

Explanation:

In psychology, there are three main learner's characteristics considered: personal characteristics (demographic information from the learners such as age, gender, language or social-economic status), academic characteristics (type of education and qualifications), and cognitive characteristics (level of intellectual skills and type of operational memory).

These characteristics must be considered by trainers at the moment of creating their programs since they must include a variety of learning approaches suitable for each type of learner in an attempt to ensure they will understand the information the trainer wants to transmit.

Answer:

$32,183.77

Explanation:

The value of her investment at the end of the 40th year will be equal to the accumulated sum pf the monthly payment compounded at the 7% rate of return.

This is given as follows:

FV = A × (1 -(1+r)^(-n))/r

 A- monthly payment, r- monthly interest rate, n- number of months

A- 200, r- 7%/12 =0.583%, n = 40 × 12 = 480

FV = 200× (1- (1.00583)^(-480))/0.00583

     =32,183.767

     = $32,183.77

Using the future value of a series formula, the estimated value of Pamela's retirement account after 40 years with a $200 monthly investment and a 7% return rate is approximately $1,068,481.

Pamela's investment can be calculated using the future value of a series formula. This formula is FV = P * [(1 + r)^nt - 1] / r, where:

Substitute these values into the formula, it becomes: FV = $200 * [(1 + 0.005833)^(12*40) - 1] / 0.005833. After doing the math, the value of Pamela's retirement account is approximately $1,068,481.

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Answer:

$11.57 per machine hour

Explanation:

Predetermined overhead rate is used to allocate overheads (indirect) to products / jobs or departments.

Predetermined overhead rate = Budgeted Fixed Costs / Budgeted Activity

Note : Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.

Predetermined overhead rate = $838,790/ 72,500

                                                  = $11.57 per machine hour

Answer:

Payback period for this invest = 3 years

Explanation:

According to the scenario, computation of the given data are as follows:

Cost = $150,000

So, cumulative cash flow can be calculated as follows:

Year                    Cash flows                    Cumulative cash flows

  0                      ($150,000)                            ($150,000 )

  1                        $60,000                              ($90,000 )

  2                        $50,000                              ($40,000 )

  3                        $40,000                              $0

  4                        $30,000                             -$30,000

  5                        $20,000                             -$50,000

As this shows in year 3 the cumulative cash flow becomes 0.

Hence, the payback period is 3 years.

= 3 years

Answer:

$ 3,063.

Explanation:

Saving in labor cost last year = Labor cost during current year * Increase in labor cost during current year.

= 32584 * 9.4 %

= $ 3,063

Conclusion :- Option a). $ 3,063. (This amount of $ 3063 increase in labor costs during current year as compared to last year represents to saving in labor costs during the last year i.e., Labor costs were less / short by $ 3063 during the last year).

Kindly note that this solution was arrived at based on the information that is available to me.

The direct labor cost is the cost incurred over the labor or employees for producing the goods or providing the services. There is a direct relationship between the productivity and direct labor cost.

The saving amount of direct labor cost for improving the productivity is $3,063.

Computation:

Given:

Labor cost of current year =$32,584

Percentage increase in labor cost =9.4%

[tex]\begin{aligned}\rm{Saving in labor cost last year}& = \rm{Labor \;cost\; during\; current\; year}\times\\& \rm{Increase \;in \;labor \;cost \;during \;current \;year}\\&= \$32,584 \times9.4 \%\\&= \$ 3,063\end{aligned}[/tex]

Therefore, $3,063 is the in the direct labor cost as compared to the previous year. Thus, last year the labor cost was short by $3,063.

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Answer:

future value = $365529.69

Explanation:

given data

deposit =  $5,000

time period = 25 years

compounded annually = 8%

solution

we get here future value that is express as in excel by formula that is

=FV(rate;NPER; PMT)

here NPER is 25 and PMt is -5000

and rate is 8%

put value and we get

future value = $365529.69

Answer:

Material handling cost allocated to Prefab Barns= $99,750

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.  

Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.

Activity rate per driver is calculated as:

Activity overhead for the period / Total cost drivers for the period

Using direct labour hours, the material handling cost can allocated as follows:

Total direct labour hours

(850 ×6500) +(9500×350) =8850000

Material handing cost allocated to Prefab =

(9500×350)/8850000 × $265,500 =$99750

Material handling cost allocated to Prefab Barns= $99,750

Final answer:

The total materials handling cost allocated to the prefab barns, when based on direct labor-hours, is approximately $99,713.35.

Explanation:

To allocate the materials handling cost on the basis of direct labor-hours to the prefab barns, we must follow a series of steps:

Calculate the total direct labor-hours for each product.

Determine the proportion of total direct labor-hours attributable to prefab barns.

Allocate the materials handling cost based on that proportion.

For Modular Homes: 6500 units  imes 850 labor-hours = 5,525,000 labor-hours

For Prefab Barns: 9500 units  imes 350 labor-hours = 3,325,000 labor-hours

Total labor-hours = 5,525,000 + 3,325,000 = 8,850,000 labor-hours

The proportion for Prefab Barns = 3,325,000 / 8,850,000 = 0.3757 (rounded to four decimal places)

Total materials handling cost for Prefab Barns = 0.3757  imes $265,500 ≈ $99,713.35 (rounded to two decimal places)

Answer:

See explanation section.

Explanation:

                                                    P2 Zisk Co.

                                      Budgeted cash payments

                                            For the 2nd quarter

                                                            April                   May                  June

Accounts payable                           $22,000

70% in the month of purchase       $56,000           $77,000            $84,000

30% in the month after purchase                            $24,000            $33,000

Budgeted cash payments              $78,000            $101,000           $117,000

Total budgeted cash for the 2nd quarter = $296,000.

30% in the month after purchase means 30% amount will be given in the following month.

Final answer:

The student's question involves creating a schedule of budgeted cash payments for a company based on monthly purchases and specified payment terms. The company pays 70% of purchases in the same month and 30% in the following month, with an accounts payable balance carried from March.

Explanation:

The student's question involves preparing a schedule of budgeted cash payments for Zisk Co., which has planned purchases for the months of April, May, and June, with specific payment terms: 70% paid in the month of purchase and 30% paid in the following month. To begin with, we need to consider the existing accounts payable balance from March 31, which amounts to $22,000.

Here's how you can calculate the cash payments for each month:

April: Payments for April purchases (70% of $80,000) plus the carryover balance from March (30% of $22,000).

May: Payments for May purchases (70% of $110,000) plus the remaining amount from April's purchases (30% of $80,000).

June: Payments for June purchases (70% of $120,000) plus the remaining balance from May (30% of $110,000).

Using this approach, you can detail the cash outflows for Zisk Co. and accurately prepare the cash budget.

Answer:

Statement 1 and 2 are correct.

Explanation:

Diversity in the workplace refers to an organization that intentionally employs a workforce comprised of individuals of varying gender, religion, race, age, ethnicity, sexual orientation, education, and other attributes.  

Diversity in the workplace leads to a plethora of benefits – both from an internal and external perspective. However, that doesn’t mean implementing diversity initiatives at work isn’t without its unique set of challenges.

Statement 1

Understand you will need feedback from employees on the implementation of the diversity program, both positive and negative.

Statement 2

Do not shy away from setting high, but realistic, goals while implementing a diversity program.

The coworker is likely to indicate the principles of gathering feedback from employees and setting realistic goals, while avoiding lowering employee standards.

Based on the given information, the coworker is likely to indicate the following diversity principles:

The statement 'If necessary, you should lower employee standards to promote diversity' is not a valid diversity principle. Lowering employee standards solely to promote diversity can compromise quality and fairness in hiring and may not be the most appropriate strategy for managing diversity.

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Answer:

 $8,500

Explanation:

The computation of the cash balance at the end of March is shown below:

Opening Cash Balance            $3,000  

Add: Cash Collection from Sales    $53,500 (($50,000 × 65%) +($60,000 × 35%)

Total Cash Available          $56,500  

Less: Cash Payments    

Inventory         $19,000 (($20,000 × 50%) + ($18000 × 50%)

S&A Expense            $4,000  

Loan & Int Payment $25,000  

Depreciation                   -   (Non Cash Expense)

Closing Cash Balance            $8,500

We simply added the cash receipts and deduct the cash payments to the opening cash balance so that the ending cash balance could come

Answer:

The correct answer is letter "C": competitive-parity method.

Explanation:

The competitive-parity method is the marketing approach in which companies simply adopt the same advertisement strategy its competitors incorporate in an attempt of reducing costs. No major research is conducted implementing this practice since entities limit themselves to follow the current marketing trend.  

Incorporating similar advertisement approaches in most cases takes companies to allocate for it the same amount of money than rivals.

Answer:

The correct answer is $36.778.

Explanation:

According to the scenario, the given data are as follows:

Dividend = $7.40

Time period (t) = 8 years

Return required (r) = 12%

So, we can calculate the current share price by using following formula:

Current share price = Dividend ×  Present value of annuity for 8 years

Where, Present value of Annuity for 8 years = = (1 - (1+r)^-t) ÷ r

= (1 - (1+12%)^-8) ÷ 12%)

= (( 1 - 0.40388322797) ÷ 0.12)

= $4.967639766916667 or $4.97

So, by putting the value, we get

Current share price = $7.40 × $4.97

= $36.778

Answer:

The price of the Stock today is $60.07. So option D is the correct answer.

Explanation:

The stock price of a company's stock whose dividends grow at two different growth rates can be calculated using the two stage Gordon growth model also known as the two stage DDM.

The short term growth rate or the growth rate that is for a limited time period is taken as g1. So, g1 is 15%

The sustainable growth rate which is the growth rate that will prevail forever is taken as g2. So, g2 is 10%

The price of the stock today is,

P0 = 1 * (1+0.15)  /  (1+0.12)   +   1 * (1+0.150^2  /  (1+0.12)^2   +  

[ (1 * (1+0.15)^2 * (1+0.1)  /  (0.12 - 0.1))  /  (1+0.12)^2 ]

P0 = $60.067 rounded off to $60.07

Answer:

Taxable income = $240,000

Amount payable = $64,850

Explanation:

As per the data given in the question,

Taxable income :

Gross revenue = $400,000

Total cost = $100,000

Net profit = $400,000 - $100,000 = $300,000

Allowable tax deduction = $60,000

Taxable income = $300,000 - $60,000

= $240,000

Tax to be paid :

Computation of tax       Amount to be taxed           Rate            Tax

$50,000                                 $50,000                        15%            $7,500

$50,000 to $75,000             $25,000                        25%           $6,250

$75,000 to $100,000           $25,000                         34%           $8,500

More than $100,000             $140,000                       39%           $54,600

Total tax                                                                                           $76,850

Amount payable = Total tax - Tax credit

= $76,850 - $12,000

=$64,850

Answer:

April 1

J1

Trade Receivable -  Mann Company $5,500 (debit)

Revenue $5,500 (credit)

J2

Cost of Goods Sold $2,500 (debit)

Merchandise $2,500 (credit)

April 2

Merchandise $9,000 (debit)

Trade Payable - Wild Corporation $9,000 (credit)

April 4

Merchandise $1,000 (debit)

Trade Payable - Ryan Company $1,000 (credit)

April 10

J1

Discount Allowed $110 (debit)

Trade Receivable -  Mann Company $110 (credit)

J2

Cash $5,390 (debit)

Trade Receivable -  Mann Company $5,390 (credit)

April 11

Trade Payable - Wild Corporation $9,000 (debit)

Cash $9,000 (credit)

Explanation:

Note : Leiss uses the perpetual inventory system

Therefore,

Recognize the Cost of Goods Sold with each sale that is made.

Answer:

The correct answer is $12,000.

Explanation:

According to the scenario, computation of the given data are as follow:-

Issued Shares = 4,000

Shares Per Value = $50

Percentage of Cumulative Preferred Stock = 6%

We can calculate the Required Dividend Arrearage by using following formula:-

As Of January 1,2019 Arrearage Dividend = Issued Share × Value Of Per Share × % Of Cumulative Preferred Stock

By putting the value, we get

= 4000 × $50 × 6%

= $200,000 × 6/100

= $12,000

Answer:

A meeting should have a specific time limit. Within that time limit, only a several amount of topics should be discussed as more focused the topics will be, the more effective the meeting will be.

In these meetings, the employers must make a platform for the employees to present the challenges and difficulties they face over the course of their work. This way, many problems can be identified and solved effectively.

Moreover, employees grievances must be discussed as well.

Explanation:

Employee meetings should focus on performance appraisals, career development, and open feedback discussions to be motivational. Building a strong manager-employee relationship and translating meeting outcomes into actionable plans are also key for meeting effectiveness.

To ensure that employee meetings are motivational and effective, several key topics should be discussed. First, performance appraisals should be on the agenda, allowing for a structured evaluation of an employee's work performance, which may involve discussing job responsibilities and setting goals for future improvement. This process should be based on original job analysis and relevant objectives.

Another topic is career development, where employees' paths within the company are explored, including skills development and growth opportunities. This could be broken down into specific time frames for milestones and goals, as suggested in their first year on the job. Thirdly, meetings should include open feedback discussions where employees have the chance to communicate their perceptions of the work environment, express concerns, and provide suggestions for improvement in a confidential and trusting setting.

Furthermore, the aspect of the manager-employee relationship cannot be overstated. Managers can enhance this relationship by understanding and addressing what motivates and frustrates their employees, thus promoting a collaborative work atmosphere. Lastly, it is crucial for both parties to translate the outcomes of these meetings into actionable plans, with employees taking initiative to work on identified weaknesses and managers working eficiently to aid their team's development.

Answer: $99,000

Explanation:

Given the opening Balance of the Bond Payable account as well as the Closing Balance and the bonds that were retired for the year, we can deduce the amount of new bonds issued using the following formula,

Opening Balance + Bonds Issued - Retired bonds = Closing Balance

Making Bonds Issued the subject we have,

Bonds Issued = Closing Balance - Opening Balance + Retired bonds

Bonds issued is therefore,

= 820,000 - 730,000 + 9,000

= $99,000

$99,000 was the Amount of new bonds issued in 2019.

Answer:

ez ez ez pz pz pzp z

Explanation:

Answer:

Plan 1= $40 per shares

Plan 2= $40 per shares

Explanation:

We can therefore calculate the price as the value of shares repurchased divided by the number of shares repurchased.

Hence:

Plan I, the value per share will be:

P = $120,000 / (15,000 – 12,000 shares)

P=$120,000/$3,000

P = $40 per share

Plan II, the value per share will be :

P = $140,000 / (15,000 – 11,500 shares)

P=$140,000/$3,500

P = $40 per share

Therefore the EPS for each of these plans is Plan l =$40 per shares and Plan ll=$40 per shares

Final answer:

The notional value of entering into 10 S&P 500 futures contracts with an index at 950 is $2,375,000, and the initial margin is $237,500. A margin call would occur if the futures price drops significantly in a week, considering a 6% continuously compounded interest rate on the margin balance and an 80% maintenance margin requirement.

Explanation:

The question involves calculating the notional value and initial margin for entering into S&P 500 futures contracts and determining the futures price at which a margin call would occur given certain conditions.

a. Notional Value and Initial Margin

The notional value of a futures contract is the value of the underlying asset represented by the contract. With the S&P 500 index currently at 950 and the intention to enter into 10 contracts, the notional value would be 950 (index value) * 10 (number of contracts) * $250 (standard contract size for S&P 500 futures), totaling $2,375,000. The initial margin, being 10% of this value, equates to $237,500.

b. Margin Call Price

With weekly mark-to-market and a maintenance margin set at 80% of the initial margin, the margin balance would need to be at least $190,000 (80% of $237,500). Assuming a continuously compounded interest rate of 6% on the margin balance, the account value would grow to approximately $240,113.29 in one week. To avoid a margin call, the futures price should not drop to a level where the equity in the account falls below the maintenance margin requirement, considering gains from interest.

Answer:

The correct answer is 11 pizza.

Explanation:

According to the scenario, computation of the given data are as follows:

Weekly demand = 10 pizzas

Safety stock = 1 pizza

Let cafeteria works 5 days a week, then daily demands = 10 ÷ 5 = 2 pizza per day

Lead time = one week = 5 days working.

So, we can calculate the optimal reorder point by using following formula:

Optimal reorder point =  (Daily demand × Lead time) + Safety stock

By putting the value, we get

Optimal reorder point = ( 2 × 5) + 1

= 10 + 1

= 11 pizzas.

Answer:

Explanation:

 At risk amount = $23,600

Suspended loss at beginning of year = $4,720

Total loss under passive activity = $37,760

a. Adjusted basis in the passive activity: $0

b. Loss suspended under the at-risk rules: $14,1600

Loss suspended under the at risk rules :Total loss under passive activity - At risk amount

=  $37,760 - 23,600  = $14,160

c. Suspended passive activity loss: $18880

Suspended loss at beginning of year +  loss suspended under the risk rules  = 4720 + 14160 = $18880

Answer:

The answer is A.

Explanation:

Yield-to-maturity is the rate of return an investor is expecting from his bonds.

Number of years (N) - 20 years

Yield-to-maturity(YTM) - ?

Present Value(price of bond) = $956.08

Future Value(FV) = $1,000

Payment Coupon(PMT) = $64(6.4% x $1000)

Using a Financial calculator, the Yield-to-maturity (YTM)

= 6.81%

Answer:

a) 1.66 minutes

b) 3.4 out of million deliveries

Explanation:

So, it is a six sigma quality question, we first need to understand little bit about six sigma and how it is to achieve six sigma level.

Six Sigma:

It is the process or technique used by many organizations through out the world to achieve maximum quality in a product or in a service they are providing. It helps to indicate root causes of the process or you can say waste steps which first need to be identified then rectified to bring that top-notch quality in the system. So in this case, in order to calculate part a) we will calculate six sigma control limits.

a) So, for six sigma control limits, the maximum allowable standard deviation is 12 or you can say +6 + (-6) = ±6 = 12. It means all deviations must lie in all 12 standard deviations.

Please refer to the table shown in the attachment. This bell curve represent six sigma concept. In this 3 sigma quality level means all deviations must lie in 6 standard deviations.

So, here we have been given that mean = 20, so with mean we can calculate standard deviation in six sigma control limits.

Maximum Allowable Standard Deviation for 6 sigma = Mean/12

                                                                                        = 20/12

                                                                                       = 1.66

So, 1.66 is the maximum allowable standard deviation of arrival times required in order to achieve 6 sigma quality level.

b) In this part, we are asked that, out of million deliveries about how many times bus deliver students too early or too late at this 6 sigma quality level.

For this answer, please refer to attachment again. and notice at the left bottom with the arrow of 6 sigma, we have a number 3.4 ppm means 3.4 part per million.

So, it 3.4 times in a million deliveries bus will deliver students either too early or too late.

Final answer:

To achieve Six Sigma quality, the Dallas School District's maximum allowable standard deviation for bus arrival times is approximately 4.44 minutes. If this standard is met, there would be about 3.4 late or early deliveries out of a million.

Explanation:

To achieve Six Sigma quality levels of performance, Dallas School District must determine the maximum allowable standard deviation for the arrival times of school buses. With a 20-minute window and the goal of Six Sigma, we understand that 4.5 standard deviations should fit within the acceptable range. This can be mathematically approached by dividing the total range by the number of standard deviations that fit within it, i.e., 20 minutes divided by 4.5.

a. The maximum allowable standard deviation for arrival times is:

b. Achieving Six Sigma quality implies that there would be only 3.4 defects per million opportunities or deliveries. Hence, if they achieve this standard, about 3.4 times out of a million deliveries a bus delivers students either too early or too late.