(a) The daily demand for hotel rooms in Greater Toronto Area (GTA) is given by the equation: QD = 230–35P. The daily supply of hotel rooms GTA is given by the equation: QS = 13+19P. What are the equilibrium price and the quantity of hotel rooms? 6 marks
(b) Suppose the demand for a bushel of Corn in 2000 was given by the equation QD = 2550–166P. At a price of $4.46 per bushel, what is the price elasticity of demand? If the price of Corn falls to $4.27 per bushel, what happens to the revenue generated from the sale of Corn?
In: Economics
A hotel downtown is trying to implement an employee recognition program based on a standardized problem solving test. The company administering the test indicated that the scores are normally distributed with a mean of 82 points, and a variance of 16. The hotel has decided that employees who score in the bottom 7.5% of the test scores will not receive any additional benefits. The manager would like to know:
a. The probability that an employee would score between 70 and 78 points
b. What cutoff score on the test should the hotel use to not give any additional benefits?
In: Statistics and Probability
Five Seasons Hotel is a chain with 10 hotels. Strategically, the
chain implements a cookie-cutter approach to building and running
its hotels, in that all hotels are practically identical. Five
Seasons invested $150 million in acquiring the land for all hotels
and $500 million in building and furnishing the 10 hotels to a
guest-ready stage. Each hotel has 150 rooms. Each room has a rack
rate of $200 per night but the hotel gives an average of discount
of $30 per night off this base price. Each hotel costs $1 million
in materials to run, and is staffed by 58 employees, each paid an
average compensation of $50,000 a year. This staffing level implies
a certain service level, which together with the rack rate and
discount, determines the chain’s average occupancy rate—the percent
of available rooms sold—in this approximate way:
Chain-wide average occupancy rate = 0.01 ? number of employees per
hotel
? ( 0.0015 ?base Price ) + ( 0.01 ? discount),
subject to a maximum of 100% and minimum of 0% (base Price and
discount are expressed in [$]). The company operates 365 nights a
year.
1. Draw the ROIC tree and discuss its structure.
2. Use this tree to compute the current ROIC?
3. Reducing the number of employees reduces staffing costs, but it
also reduces the occupancy rate when service level drops. What is
the ROIC if Five Seasons reduces the number of employees to 50 per
hotel?
In: Finance
A restaurant manger, Coleman, at the Four Seasons Hotel wants to predict/forecast a number of meals to be prepared for the breakfast since the labor costs and cost of good sold are vey high and does not want to create high volume of waste and manage the inventory in a proper way.
He looks through the previous data (2016) to determine the relationship between the number of guest stayed at the hotel and number of meals served from the following data:
Number of guest stayed at the hotel (Guest) Number of meals (breakfast) served (Meals)
Guest Meals
23 69
29 95
29 102
35 118
42 126
46 125
50 138
54 178
64 156
66 184
76 176
78 225
Y = (describe which one is used for Y):
X = (describe/identify which one is used for X):
A = (A refers to ?) and provide a number
B = (B refers to ?) and provide a number
In: Statistics and Probability
[The following information applies to the questions
displayed below.]
In 2021, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2023. Information related to the contract is
as follows:
| 2021 | 2022 | 2023 | |
| Cost incurred during the year | 2,016,000 | 2,808,000 | 2,613,600 |
| Estimated costs to complete as of year end | 5,184,000 | 2,376,000 | 0 |
| Billings during the year | 2,180,000 | 2,644,000 | 5,176,000 |
| Cash collections during the year | 1,890,000 | 2,500,000 | 5,610,000 |
Westgate recognizes revenue over time according to percentage of completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
| 2021 | 2022 | 2023 | |
| Revenue | 2,800,000 | 3,900,000 | 3,300,000 |
| Gross Profit (Loss) | 784,000 | 1,092,000 | ? |
Steps please..
In: Accounting
Construction industry is considered as mother of all industries.
It is industry of many industries. It is labor intensive and has
the lowest capital cost for job creation. Pakistan is 6th largest
country in terms of population with high rate of migration from
rural to urban centers. According to one estimate about one-half of
the households in urban area do not have their own house. There is
therefore a great untapped potential for construction industry in
the country The government in an effort to fulfill its promise of
providing houses and creating employment opportunities has recently
declared construction as an industry. It has offered several
incentives to builders besides giving amnesty on investment that is
the source of income will not be asked from the buyers and
investors in the industry.
Required:
a- Explain in brief the volume and value scope of
construction industry in Pakistan.
b- While explaining the economic importance highlight
the socio-economic role of construction industry.
c- Do you think that the package announced for
construction industry is effective enough to boost the in industry?
If yes/No, explain why?
In: Operations Management
by deed, the bland family donated 50 acres of land to the city for the use of a park upon condition that the park be used for whites only and if this ever ceased to be the use, the property would revert back to the family. this provision in the deed is a condtion subsequent. True or False?
In: Operations Management
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,550,000 | $ | 4,250,000 | $ | 1,870,000 | |||
| Estimated costs to complete as of year-end | 5,950,000 | 1,700,000 | 0 | ||||||
| Billings during the year | 2,050,000 | 4,750,000 | 3,200,000 | ||||||
| Cash collections during the year | 1,825,000 | 4,100,000 | 4,075,000 | ||||||
Westgate recognizes revenue over time according to percentage of completion.
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2021 2022 2023
Revenue ______ _______ ________
Gross P _______ _______ ________
2-a. In the journal below, complete the
necessary journal entries for the year 2021 (credit "Various
accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary
journal entries for the year 2022 (credit "Various accounts" for
construction costs incurred).
2-c. In the journal below, complete the necessary
journal entries for the year 2023 (credit "Various accounts" for
construction costs incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.
| 2021 | 2022 | 2023 | |||||||
| Costs incurred during the year | $ | 2,550,000 | $ | 3,825,000 | $ | 3,225,000 | |||
| Estimated costs to complete as of year-end | 5,950,000 | 3,125,000 | 0 | ||||||
2021 2022 2023
Revenue ______ _______ ________
Gross P _______ _______ ________
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.
| 2021 | 2022 | 2023 | |||||||
| Costs incurred during the year | $ | 2,550,000 | $ | 3,825,000 | $ | 3,975,000 | |||
| Estimated costs to complete as of year-end | 5,950,000 | 4,150,000 | 0 | ||||||
2021 2022 2023
Revenue ______ _______ ________
Gross P _______ _______ ________
In: Accounting
Describe the Theory of Constraints (TOC). How might the TOC be used to explain operating conditions at a business organization you frequently visit. supermarket, theater, children's school, local gasoline service station.,airport, department store, etc0
In: Finance
On February 1, 2010, Marsh Contractors agreed to construct a building at a contract price of $5,800,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2012. Information relating to the costs and billings for this contract is as follows: 2014 2015 2016 Total costs incurred to date $1,500,000 $2,640,000 $4,600,000 Estimated costs to complete 2,500,000 1,760,000 -0- Customer billings to date 2,200,000 4,000,000 5,600,000 Collections to date 2,000,000 3,500,000 5,500,000
Instructions Fill in the correct amounts on the following schedule.For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2010, 2011, and 2012.
Percentage-of-Completion Revenue
2010:
2011:
2012:
Completed-Contract Revenue
2010:
2011:
2012:
Percentage-of-Completion Gross Profit
2010:
2011:
2012:
Completed-Contract Gross Profit
2010:
2011:
2012:
Calculate the Over/Under Billing for:
2010:
2011:
2012:
In: Accounting