A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.)

Required:

1. Show the hotel’s cost structure by indicating the percentage of the hotel’s revenue represented by each item on the income statement.

2. Suppose the hotel’s revenue declines by 30 percent. Use the contribution-margin percentage to calculate the resulting decrease in net income.

3. What is the hotel’s operating leverage factor when revenue is $1,200,000?

4. Use the operating leverage factor to calculate the increase in net income resulting from a 35 percent increase in sales revenue.

On January 1, 2017, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Pina Inc. for an initial franchise fee of $40,000. The amount of $8,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $6,400 each, beginning January 1, 2018. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2017. Lesley Benjamin’s credit rating indicates that she can borrow money at 8% for a loan of this type. Prepare journal entries for Pina for 2017-related revenue for this franchise arrangement, assuming that in addition to the franchise rights, Pina also provides 1 year of operational consulting and training services, beginning on the signing date. These services have a value of $4,400.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Jan 1,17

Debit: cash 8000

Debit: note receivable 32000

Credit: discount on notes receivable 6447

Credit: unearned service revenue ?

Credit: unearned franchise revenue ?

apr 1, 2017

Debit: unearned franchise revenue ?

Debit: unearned service revenue ?

Credit: service revenue ?

Credit: franchise revenue ?

dec 31 2017

Debit: unearned service revenue ?

Creit: service revenue ?

Debit: discount on notes receivable 2044

Credit: interest revenue 2044

You have three tickets to a Celtics game on a night that you are going to be out of town (so the value of unsold tickets is zero to you). There are only four possible buyers of a Celtics ticket. The table below lists the respective reservation prices of these four possible buyers: Customer Reservation Price 1 $25 2 $35 3 $50 4 $60 How much revenue can you generate if you charge a single price of $25 for the three tickets?

a) How much revenue can you generate if you charge a single price of $35 for the three tickets?

b). How much revenue can you generate if you charge a single price of $50 for the three tickets?

c) How much revenue can you generate if you charge a single price of $60 for the three tickets?

d) Which of the prices fetches you the highest revenue?

e) Next, you think about inviting bids using an English auction to sell your tickets. How much revenue can you generate using the English auction mechanism from the sale of the first ticket?

f) How much revenue can you generate using the English auction mechanism from the sale of the second ticket?

g) How much revenue can you generate using the English auction mechanism from the sale of the third ticket?

h) How much total revenue can you generate using the English auction mechanism?

i) Which pricing strategy gives you higher revenue - English Auction or charging a single price?

According to supply-side theory, a cut in taxes will tend to cause ________.

an increase in the amount of total tax revenue collected

a decline in the amount of total tax revenue collected

individual workers to devote more time to leisure activities

no change in the amount of total tax revenue collected

Are these amusement park rides equal in terms of monetary revenue?
Test at α = .01 significance level.

Tornado:                     Average daily revenue = $300.00;   standard deviation = 45.0;    n = 12

Double Blizzard:          Average daily revenue = $320.00;   standard deviation = 38.0;    n = 17

The majority of company valuations today are based on multiples of revenues or EBITDA.Using the following data please state the company valuation for each of the scenarios below.[SaaS Revenue 4x multiple: Tech Enabled Service Revenue 1.5x multiple: Maintenance Revenue 2x multiple: Traditional Service Revenue 1x multiple: Positive EBITDA 15x multiple.]

1. Company A has a mix of Tech Enabled and Traditional Service.The Tech Enabled Services total $4,000,000.00 annually and the Traditional Service totals $1,500,000.00.
2. If the same company in “1” above had annual EBITDA of $750,000.00, which would be the better valuation?
3. Company B has high growth SaaS revenue of $10,000,000.00 and Maintenance Revenue of $4,500,000.00.It also has annual operating EBITDA of -$350,000.00.Based on these facts would an offer of $31,000,000.00 for the company be acceptable?Please explain your answer.
4. Company C is a pure Traditional Services company with $3,500,000.00 in annual revenue but $1,000,000.00 in EBITDA.Based on this should the owner accept a lower than standard 10x EBITDA multiple or $10,000,000.00?Please explain your answer.

This Question has 6 parts a) to f): Answer all of them below:

Penn State Marketing and Branding Office is interested in understanding more about alumni’s donation behavior, and the director Tom invited you to analyze a data set of 1,000 donors in the year 2016. There are several variables in the data

Y_i Amount of donations in dollars donor i made in the year 2016.

MC_i: The cost of all marketing communications in dollars donor i received in the year 2016.

R_i: How recent (in years) has donor i made a donation? e.g. RC_i = 5 means donor i’s last donation is five years ago (Recency).

F_i: How frequently does donor i make donations in the past 10 years? e.g. FQ_i = 0.5 means donor i makes five donations in the past 10 years.

M_i: How much donations ($) does donor i make on average in the past 10 years?

Tom built the following regression model

Y_i=β_0+β_1 MC_i+β_2 R_i+β_3 F_i+β_4 M_i+ϵ_i,

and Table below summarizes the estimated regression model from SPSS,

a) What does the coefficient estimate 1.702 mean (in the MC row)?

b) Based on the output, is the impact of marketing communications statistically significant?

Tom added a new variable “State_i” into the regression model

Y_i=β_0+β_1 MC_i+β_2 R_i+β_3 F_i+β_4 M_i+β_5 State_i+ϵ_i,

and Table below summarizes the estimated regression model from SPSS. State_i = 1 when the donor is from Pennsylvania and State_i = 0 when the donor is not from Pennsylvania.

c) What does the coefficient estimate -11.636 mean (in the State row)?

d) Tom said

“Since Penn State is located in Pennsylvania, we should spend more resources targeting those donors who are from Pennsylvania.”

Do you agree or disagree with Tom’s decision? Use evidence from the output to support your claim.

Tom added a variable “GradYear_i” into the regression model

Y_i=β_0+β_1 MC_i+β_2 R_i+β_3 F_i+β_4 M_i+β_5 State_i+β_6 GradYear_(1999_i )+β_7 GradYear_20〖00〗_i+ϵ_i

and Table below summarizes the estimated regression model from SPSS. Here, all donors graduated either from year 1998, 1999 or 2000 and GradYear 1998 is used as the baseline.

e) What does the coefficient estimate -13.862 mean (in the GradYear_1999 row)?

f) What does the coefficient estimate 19.433 mean? (in the Constant row)

Design a Ship class that has the following members:

• A member variable for the name of the ship (a string)
• A member variable for the year that the ship was built (a string)
• A constructor and appropriate accessors and mutators
• A virtual print function that displays the ship’s name and the year it was built.

Design a CruiseShip class that is derived from the Ship class. The CruiseShip class
should have the following members:

• A member variable for the maximum number of passengers (an int )
• A constructor and appropriate accessors and mutators
• A print function that overrides the print function in the base class. The CruiseShip class’s print function should display only the ship’s name and the maximum number of passengers.

Design a CargoShip class that is derived from the Ship class. The CargoShip class
should have the following members:

• A member variable for the cargo capacity in tonnage (an int ).
• A constructor and appropriate accessors and mutators.
• A print function that overrides the print function in the base class. The CargoShip class’s print function should display only the ship’s name and the ship’s cargo capacity.

After you have created these classes, create a driver program that defines an array pointers to your abstract base class Ship. It should present a menu to allow the user to enter a Cruise Ship or a Cargo Ship. When the user selects cruise ship, it should prompt them for the name, year built, and the number of passengers. When the user selects cargo ship, it should prompt them ffor the name, year built, and the maxium cargo load (in tons). Each selection should create an object that can be stored into your array of pointers. When the program exits, it should display the history of the session which includes each of the objects the user created which will be a combination of cruise ships and cargo ships. An example output is shown here:

Menu

1. Cruise Ship
2. Cargo Ship
3. Quit
Please make your selection: 2

Please enter the name of the ship: Big Bertha
Please enter the year the ship was built: 1975
Please enter the capacity (tons): 50000

Menu

1. Cruise Ship
2. Cargo Ship
3. Quit
Please make your selection: 1

Please enter the name of the ship: Disney Magic
Please enter the year the ship was built: 1998
Please enter the capacity (passengers): 2400

Menu

1. Cruise Ship
2. Cargo Ship
3. Quit
Please make your selection: 3

The history of your session is

Selected Cargo Ship

Name: Big Bertha
Year: 1975
Capacity (tons): 50000

Selected Cruise Ship

Name: Disney Magic
Year: 1998
Capacity (passengers): 2400

The total revenue, in thousands of dollars, from the sale of x spas and y solar heaters is approximated by R(x,y)= 12+74x+85y-3x^2-5y^2-5xy.

find the number of each that should be sold to procude maximum revenue. Find the maximum revenue.