1. Ahmed found the times taken to answer six telephone enquiries as 3, 4, 1, 5, 7 and 1 minutes. What is the mean?
2. What are the variance and standard deviation of 2, 3, 7, 8, and 20?
3. Ambrose Financial classify shares in the emerging sector as low, medium or high risk. In recent years, these have had mean annual return of 9.2%, 17.0%, and 14.8%, respectively. The standard deviation have been 9%, 9.8% and 13.6%, respectively. What does this tell you?
4. Peter Keller collected the following data for a process over two consecutive years. What can you say about performance?

2018 2019

Number pf units made 1000 1,200

Selling price $100 $100

Raw materials used 5,100 kg 5,800kg

Cost of raw materials $20,500 $25,500

Hours worked 4,300 4500

Direct labor costs $52,000 $58,000

Energy used 10,000 kwh 14,000 kwh

Energy cost $1000 $1,500

Other costs $10,000 $10,000

5. A company sells 200 units of a product every week, the fixed costs for building machines and employees are $12,000 a week, while raw materials and other variable costs are $50 a unit.

1. What is the profit if the selling price is $130 a unit?
2. What is the profit if the selling price is $80 a unit?
3. What is the profit if the selling price is fixed at $80 but sales rise to 450 units a week?

Part 2:

1. The ABC company is thinking of purchasing a new luxury coach to sustain its prestige client business. The purchase cost of the vehicle, including license plates and delivery, is $120,000. The company anticipates that it will use the vehicle for five years and be able to sell it at the end of that period for $40,000. The revenue the company expects to generate using the coach is as follows:

By the end of year	net profit before depreciation ($)
1 2 3 4 5	30,000 30,000 30,000 25,000 20,000

1. What is the accounting rate of return for this investment?
2. Workout the payback period for the investment proposed being considered by ABC company.

2. The following indices monitor the annual profits of J.A company.

year	1	2	3	4	5	6	7	8
Index 1 Index 2	100	138	162	196	220 100	125	140	165

1. What are the base years for the indices?
2. If the company had not changed to index 2, what values would index 1 have in year 6 to 8?
3. What values does index 2 have in year1 to 4?
4. If the company made a profit of $4.86 million in year 1, how much did it make in the other years?

3. If you invest SR2000 how much will you have after three years if the interest rate is 12% a year?

4. Rockwall trust is thinking of investing in a new technology company. There are two possible investments, whose profits can be summarized as follows: option 1 gives a profit of $300,000 in five years time. Option 2 gives a profit of $500,000 in 10 years time. Which option should the company choose if it uses a discount rate of 20% a year for future profits?

5. What is the net present value of the proposed investment in the luxury coach by the ABC company in question 1 of this assignment? Use a 10% interest rate.