Between 1988 and 1990 three $150 million amusement parks opened in France. By 1991 two of them were bankrupt and the third was doing poorly. Despite this, the Walt Disney Company went ahead with a plan to open Europe’s first Disneyland in 1992. Far from being concerned about the theme park doing well, Disney executives were worried that Euro Disneyland would be too small to handle the giant crowds. The $4.4 billion project was to be located on 5,000 acres in Seine-et-Marne 20 miles east of Paris. And the city seemed to be an excellent location; there were 17 million people within a two-hour drive of Euro Disneyland, 41 million within a four-hour drive, and 109 million within six hours of the park. This included people from seven countries: France, Switzerland, Germany, Luxembourg, the Netherlands, Belgium, and Britain. Disney officials were optimistic about the project. Their US parks, Disneyland and Disneyworld, were extremely successful, and Tokyo Disneyland was so popular that on some days it could not accommodate the large number of visitors. Simply put, the company was making a great deal of money from its parks. However, the Tokyo park was franchised to others—and Disney management felt that it had given up too much profit with this arrangement. This would not be the case at Euro Disneyland. The company’s share of the venture was to be 49 per cent for which it would put up $160 million. Other investors put in $1.2 billion, the French government provided a low-interest $900 million loan, banks loaned the business $1.6 billion, and the remaining $400 million was to come from special partnerships formed to buy properties and to lease them back. For its investment and management of the operation, the Walt Disney Company was to receive 10 per cent of Euro Disney’s admission fees, 5 per cent of food and merchandise revenues, and 49 per cent of all profits. The location of the amusement park was thoroughly researched. The number of people who could be attracted to various locations throughout Europe and the amount of money they were likely to spend during a visit to the park were carefully calculated. In the end, France and Spain had proved to offer the best locations. Both countries were well aware of the park’s capability for creating jobs and stimulating their economy. As a result, each actively wooed the company. In addition to offering a central location in the heart of Europe, France was prepared to provide considerable financial incentives. Among other things, the French government promised to build a train line to connect the amusement park to the European train system. Thus, after carefully comparing the advantages offered by both countries, France was chosen as the site for the park. At first things appeared to be off to a roaring start. Unfortunately, by the time the park was ready to open, a number of problems had developed, and some of these had a very dampening effect on early operations. One was the concern of some French people that Euro Disney was nothing more than a transplanting of Disneyland into Europe. In their view the park did not fit into the local culture, and some of the French press accused Disney of “cultural imperialism.” Others objected to the fact that the French government, as promised in the contract, had expropriated the necessary land and sold it without profit to the Euro Disneyland development people. Signs reading “Don’t gnaw away our national wealth” and “Disney go home” began appearing along roadways. These negative feelings may well have accounted for the fact that on opening day only 50,000 visitors showed up, in contrast to the 500,000 that were expected. Soon thereafter, operations at the park came under criticism from both visitors and employees. Many visitors were upset about the high prices. In the case of British tourists, for example, because of the Franc exchange rate, it was cheaper for them to go to Florida than to Euro Disney. In the case of employees, many of them objected to the pay rates and the working conditions. They also raised concerns about a variety of company policies ranging from personal grooming to having to speak English in meetings, even if most people in attendance spoke French. Within the first month 3,000 employees quit. Some of the other operating problems were a result of Disney’s previous experiences. In the United States, for example, liquor was not sold outside of the hotels or specific areas. The general park was kept alcohol free, including the restaurants, in order to maintain a family atmosphere. In Japan, this policy was accepted and worked very well. However, Europeans were used to having outings with alcoholic beverages. As a result of these types of problems, Euro Disney soon ran into financial problems. In 1994, after three years of heavy losses, the operation was in such bad shape that some people were predicting that the park would close. However, a variety of developments saved the operation. For one thing, a major investor purchased 24.6 per cent (reducing Disney’s share to 39 per cent) of the company, injecting $500 million of much needed cash. Additionally, Disney waived its royalty fees and worked out a new loan repayment plan with the banks, and new shares were issued. These measures allowed Euro Disney to buy time while it restructured its marketing and general policies to fit the European market. In October 1994, Euro Disney officially changed its name to “Disneyland Paris.” This made the park more French and permitted it to capitalize on the romanticism that the word “Paris” conveys. Most importantly, the new name allowed for a new beginning, disassociating the park from the failure of Euro Disney. This was accompanied with measures designed to remedy past failures. The park changed its most offensive labor rules, reduced prices, and began being more culturally conscious. Among other things, alcohol beverages were now allowed to be served just about anywhere. The company also began making the park more appealing to local visitors by giving it a “European” focus. Ninety-two per cent of the park’s visitors are from eight nearby European countries. Disney Tomorrowland, with its dated images of the space age, was jettisoned entirely and replaced by a gleaming brass and wood complex called Discovery land, which was based on themes of Jules Verne and Leonardo da Vinci. In Disneyland food services were designed to reflect the fable’s country of origin: Pinocchio’s facility served German food, Cinderella’s had French offerings, and at Bella Notte’s the cuisine was Italian. The company also shot a 360-degree movie about French culture and showed it in the “Visionarium” exhibit. These changes were designed to draw more visitors, and they seemed to have worked. Disneyland Paris reported a slight profit in 1996, and the park continued to make a modest profit through to the early 2000s. In 2002 and 2003, the company was once again making losses, and new deals had to be worked out with creditors. This time, however, it wasn’t insensitivity to local customs but a slump in the travel and tourism industry, strikes and stoppages in France, and an economic downturn in many of the surrounding markets.

1. What is Walt Disney Company shown as multinational enterprises (MNE) characteristics?
2. Disney instead of licensing some other firm to build and operate the park and settling for a royalty, it takes wholly ownership strategy in the firm, why?
3. Are Walt Disney and Euro Disney indicate the same strategy of MNE?
4. Before going ahead with Euro Disney, was there an external environmental analysis from Disney? Clarify.
5. total answer must be 800 words

In a survey of 3,827 ​travelers, 1,459 said that location was very important for choosing a hotel and 1,175 said that reputation was very important in choosing an airline. Complete parts ​(a) through​ (c) below.

a. Construct a 95​% confidence interval estimate for the population proportion of travelers who said that location was very important for choosing a hotel.

b. Construct a 95​% confidence interval estimate for the population proportion of travelers who said that reputation was very important in choosing an airline.

c. Write a short summary of the information derived from​ (a) and​ (b) Which of the following is the best summary of the information derived from​ (a)?

A.One can be 95​% confident that the sample proportion of all travelers who said that location was very important for choosing a hotel lies within the interval in​ (a).

B.One can be 95​% confident that the population proportion of all travelers who said that location was very important for choosing a hotel lies within the interval in​ (a).

C.There is a 95​% probability that the sample proportion of all travelers who said that location was very important for choosing a hotel lies within the interval in​ (a).

D.There is a 95% probability that the population proportion of all travelers who said that location was very important for choosing a hotel lies within the interval in​ (a).

Which of the following is the best summary of the information derived from​ (b)?

A.One can be 95​% confident that the population proportion of all travelers who said that reputation was very important in choosing an airline lies within the interval in​ (b).

B.One can be 95​% confident that the sample proportion of all travelers who said that reputation was very important in choosing an airline lies within the interval in​ (b).

C.There is a 95​% probability that the sample proportion of all travelers who said that reputation was very important in choosing an airline lies within the interval in​ (b).

D.There is a 95​% probability that the population proportion of all travelers who said that reputation was very important in choosing an airline lies within the interval in​ (b).

QUESTION 8

For a monopolist:

QUESTION 9

An example of price discrimination is the price charged for:

QUESTION 10

There is only one gas station within hundreds of miles. The owner finds that if she charges $3 a gallon, she sells 199 gallons a day, and if she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:

QUESTION 11

At the long-run equilibrium level of output, the monopolist's marginal cost will:

QUESTION 12

A monopolist will earn economic profits as long as his price exceeds:

QUESTION 13

A monopolist will maximize its profit by:

QUESTION 14

Both a perfectly competitive firm and a monopolist:

QUESTION 15

Without government regulation, the market outcome of monopoly:

Problem 10-07 (Algorithmic)

Aggie Power Generation supplies electrical power to residential customers for many U.S. cities. Its main power generation plants are located in Los Angeles, Tulsa, and Seattle. The following table shows Aggie Power Generation's major residential markets, the annual demand in each market (in megawatts or MWs), and the cost to supply electricity to each market from each power generation plant (prices are in $/MW).

1. If there are no restrictions on the amount of power that can be supplied by any of the power plants, what is the optimal solution to this problem? Which cities should be supplied by which power plants? What is the total annual power distribution cost for this solution? If required, round your answers to two decimal places.
   
   The optimal solution is to produce  MWs in Los Angeles,  MWs in Tulsa, and  MWs in Seattle. The total distribution cost of this solution is $  .
   
2. If at most 3800 MWs of power can be supplied by any one of the power plants, what is the optimal solution? What is the annual increase in power distribution cost that results from adding these constraints to the original formulation? If required, round your answers to two decimal places.
   
   What is the optimal solution to produce ____ MWs in Los Angeles?
3. What is the optimal solution to produce ____ MWs in Tulsa?
4. What is the optimal solution to produce ____ MWs in Seattle?
5. What is the total distribution cost of this solution?
6. What is the increase in cost associated with the additional constraints?

1-Younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $3,160,000. The company plans to manufacture 400 Heaters and 100 Massagers this year. In manufacturing the recliners, the company must perform 600 material moves for the Heater and 400 for the Massager; it processes 900 purchase orders for the Heater and 700 for the Massager; and the company’s employees work 1,400 direct labor hours on the Heater product and 3,400 on the Massager. Younger’s total material handling costs are $2,000,000 and its total processing costs are $1,160,000. Using ABC, how much overhead would be assigned to the Heater product? $1,852,500

Answer:

2-Baxter Accounting Services estimates for next year revenues of $3,000,000, direct labor of $600,000, and overhead of $1,050,000. Under traditional costing, what is overhead rate is applied to audit jobs? 175% of direct labor

Answer:

3-Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $300,000; and legal support, $150,000. Information on the two services is:

                                                              Audit                                       Tax         

Direct labor cost                                         $50,000                                  $100,000

CPU minutes                                                 40,000                                      10,000

Legal hours used                                               200                                          800

What is overhead applied to audit services using traditional costing? $150,000

What is overhead applied to tax services using traditional costing? $300,000

What is overhead applied to audit services using activity-based costing? $270,000.

What is overhead applied to tax services using activity-based costing? $180,000.

Gant Accounting performs tax services for Cathy Lane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using activity-based costing? $4,950

Answer:

Aggregate surplus:

a)equals consumers' total willingness to pay for a good less firms' total avoidable cost of production.

b)equals consumers' total willingness to pay for a good plus firms' total avoidable cost of production.

c)captures the total benefit created by the production and consumption of the good.

d)captures the total cost created by the production and consumption of the good.

1. Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (π), and marginal profit (Mπ) in the following table:

Graph the firm’s demand curve and marginal revenue curve.

Graph the firm’s total cost curve, total revenue curve, and total profit curve.

1. From the figures given below, calculate Economic OrderQuantity (EOQ) and Total cost at E0Q? Total consumption of material per year Unit cost of material10,000 kgsBuying cost per order $ 50$ 2 per kgCarrying and storage cost 8%2. The XR stocks carpet in its warehouse and sells it through anadjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday)3. Let's imagine a company we called XY Inc. Nile is a vegetableretailer who has the following metrics - Cost of Goods Sold (COGS) = $365 Average inventory $10 (they have low levels of inventory in general) Sales $1095 Accounts Receivable = $30 Accounts Payable $30What is cash conversion cycle?

Illustrate the total cost graph. You must include total costs, variable costs and fixed costs.

Complete Table 1 by computing the Total Revenue, Marginal Revenue, Total Cost, and Profit columns, each rounded to two decimal places. The cost of duplicating a video on a DVD and mailing the DVD, the Marginal Cost, is $5.56. (1 point)

Table 1

b. The President wants the GSTCG to provide videos to generate the most possible donations (Total Revenue). What price is the President of the GSTCG favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

c. The Education Outreach Committee wants the GSTCG to provide videos to the most possible number of people. What price is the Educational Outreach Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

d. The Treasurer of the GSTCG wants the DVD program to be as efficient as possible so that the marginal revenue equals marginal cost. What price is the Treasurer favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

e. The Fundraising Committee wants the DVD program to generate as much profit in donations as possible. What price is the Fundraising Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)