Practice Midterm 2

Practice Midterm 2 - COMM 294 PRACTICE MIDTERM EXAM #2...

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1 COMM 294 PRACTICE MIDTERM EXAM #2 – WINTER 2010 Time: Total Marks: Name(Last,First): ___________________________ Student# ___________ Signature: ____________________________ Section No. ______ 1. Please be careful to budget your time carefully so that you can attempt all the questions. 2. Please do not ask any questions concerning the INTERPRETATION of the questions. If you believe there is missing or incorrect information, state your assumption and proceed. 3. Read the whole question before you start answering. Read carefully!!! 4. Take (intermediate) calculations to TWO decimal places. 5. Show your work (so you can get part marks). You MUST show your work to get the marks. 6. If you write on the back of a page, please indicate so . Otherwise, it will not be graded. 7. TURN YOUR CELL PHONES OFF AND PUT THEM AWAY (IN YOUR BAG OR COAT). CELL PHONES ARE NOT PERMITTED ON THE TABLE. 8. Do NOT tear any pages out (unstaple and restaple, if you have to). THIS IS A LONGER EXAM THAT WOULD TAKE APPROXIMATELY 1 ¾ HOURS Question #1 (40 marks, suggested time 50 minutes) CVP Farmer Dell (Dell) has a very large pig and poultry farm in Langley and has been in business for many years. The following is a summary of some of the data for an average year of farming: Pigs Chickens Number of animals sold per year # 2,000 # 18,000
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Average sales price per animal $150 $ 8 Total feed cost per year $ 50,000 $ 19,800 Purchase price per baby animal $12 $ 0 . 50 “De-worming” shot per animal, per year $ 8 0 Butcher costs $ 40,000 $13,500 Rental of feeding machines per year $ 3,000 $ 2,400 Dell is presently almost at capacity. There is capacity for 200 more pigs or 1,200 more chickens. A pig uses six times more space than a chicken. Based on the acreage, Dell has hired three workers who are each paid a salary of $32,000 per year. These workers clean the pig pens and chicken coups and are responsible for operating the feeding machines. The pigs take 24 months to raise from baby animals to when they are ready to be sold. Prior to sale they are sent to the butcher (an independent contractor) who is located in the adjacent town. The butcher charges Dell by the animal. The chickens are sent to the butcher after a 12 month stay on the farm! There is no cost incurred in changing the configuration/volume of pig pens or chicken coups, although they are constrained in aggregate, as per above. The combined rent on the buildings and the land is $48,000 per year. Dell can return any feeding machines that he doesn’t need. There is plenty of capacity on each feeding machine, however, the pigs don’t like using the chickens’ machines and the chickens don’t like the pigs’ machines.
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Practice Midterm 2 - COMM 294 PRACTICE MIDTERM EXAM #2...

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