1. Mangement is considering two hotel projects. Project A will be in Jamaica with an intial investment of $865,000 and Project B will be in Canada with an initial investment of $750,000

The cost of capital for Project A is 13% and the cost of capital for project B is 15%.
Calculate the following;

1. Calculate the discounted payback period of Project A
   
2. Calculate the discounted payback period of Project B.
   
3. Calculate the net present value for Project A
   
   
4. Calculate the net present value for Project B.

5. Managemet can only accept one project. Which project should management accept? Explain your answer.

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 20 properties with an average of 150 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 75 percent, based on a 365-day year. The average room rate was $220 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows:

In year 1, the average fixed labor cost was $407,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 75 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 8 percent.

Food and beverage revenues per night are expected to decline by 15 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 20 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 6 percent, and marketing costs will increase by 8 percent.

Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 22 properties with an average of 150 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 80 percent, based on a 365-day year. The average room rate was $215 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows:

In year 1, the average fixed labor cost was $418,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open two new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 80 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 5 percent.

Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 8 percent, and marketing costs will increase by 10 percent.

Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 12 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 75 percent, based on a 365-day year. The average room rate was $218 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows.

In year 1, the average fixed labor cost was $419,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open three new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 75 percent. Management has made the following additional assumptions for year 2.

• The average room rate will increase by 8 percent.
• Food and beverage revenues per night are expected to decline by 15 percent with no change in the cost.
• The labor cost (both the fixed per property and variable portion) is not expected to change.
• The miscellaneous cost for the room is expected to increase by 20 percent, with no change in the miscellaneous revenues per room.
• Utilities and depreciation costs (per property) are forecast to remain unchanged.
• Management costs will increase by 6 percent, and marketing costs will increase by 8 percent.
• Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

The catering manager of LaVista​ Hotel, Lisa​ Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday​ night, when her crew tried to set up for a banquet for 500​ people, they did not have enough knives. She decides she needs to order some more​ silverware, but wants to take advantage of any quantity discounts her vendor will offer.

follows≻For

a small order

​(2,000

pieces or​ less) her vendor quotes a price of

​$1.80/piece.

follows≻If

she orders

2,001

to

5,000

​pieces, the price drops to

​$1.60/piece.

follows > 5,001

to

10,000

pieces brings the price to

​$1.40/piece,

and

follows≻ 10,001

and above reduces the price to

​$1.25/piece.

​Lisa's order costs are

​$200

per​ order, her annual holding costs are

5%,

and the annual demand is

45,700

pieces. For the best option​ (the best option is the price level that results in an EOQ within the acceptable​ range):

​a) What is the optimum ordering​ quantity?

nothing

units ​(round your response to the nearest whole​ number).

B) What is the annual holding cost? ​(round your response to two decimal​ places).

C) What is the annual ordering cost? (round your response to two decimal​ places).

D) What are the annual cost of the silverware with an optimal order quantity? (round your response to two decimal​ places).

E) What is the total annual cost, including ordering, holding, and purchasing the silverware? ​(round your response to two decimal​ places).

Please review the following case information and determine what the population residual plot means. The residual is already calculated but I need to know what role in plays in this case analysis for the regression analysis. Thanks in advance!

In this case, Armand's Pizza Parlors is a chain of Italian-food restaurants located in five-state area. Their most sucessful locations are the ones near college campuses. The null hypothesis is that the managers believe that quarterly sales for these restaurants (y) are related positively to the size of the student population (x). Thus, the restaurants that are near college campuses with a larger student population tend to generate more sales than the restuarants near campuses with a small student population. The alternative hypothesis is that the restaurants near college campuses with a larger student population do not generate more sales than the restaurants near college campuses with a smaller student population.

I need a proper solution for this question ( well explained and understandable writing)

Charged particles from outer space, called cosmic rays, strike the Earth more frequently near the poles than near the equator. Why?

Soap Makers International

Several years ago, Ingrid Krause wanted some international expertise and applied for a transfer to her company’s soap division, which is located south of Warsaw, Poland. The soap division manufactures hand soap for use in a large number of settings, from hospitals to luxury hotels. Ingrid was awarded the transfer to the soap division and was assigned to the accounting department. She is responsible for overseeing the costing and probability analysis of the various soaps and soap-making processes. During her tenure in the soap division, there were numerous changes in the number of soaps manufactured and the processes to make the different soaps. Consequently, Ingrid’s position required her to consider changes in the accounting processes to reflect the changes in the soap division’s business.

For several decades, the company’s soap-making process required a large labour force that manufactured and packaged the soap mainly by hand. Local economic changes meant that the labour force that the factory required was not as available as it had been in the past. As a result, the division was experiencing slower processing time, and more snap being rejected during inspections because of quality concerns. To address the issues related to the lack of labour availability, the division’s management decided three years ago that automation was the way to go. Consequently, over the last three years, the soap making processes have changed with the implementation of automation.

The automation of the soap making processes have allowed for a much larger variety of soap and packing, a reduced direct labour force and direct labour costs, and a higher level of traceability of costs to the various soaps because of technological improvements. Soaps made for industrial applications require different ingredients, less time in processing, less time in finishing, and less time in and cheaper packaging than do soaps for the hotel industry. The costs of materials and packaging are directly traceable to the various types of soaps through new software that uses bar codes and counters to trace material costs to the various soaps directly.

Ingrid feels that the current costing system should be revisited. The cost driver for allocation of the overhead costs (such as supervisory salaries and plant utilities) have always been direct labour hours cost. However, given the decline in the use of labour due to automation, Ingrid is questioning its suitability as a basis of allocation. Ingrid would like to explore activity based costing to allocate overhead costs.

Ingrid has gathered cost data for two representative soaps: one sold to hospitals and one sold to hotels. Further, Ingrid has gathered data from the automated system on the amount of time each type of soap spends in the three manufacturing processes: processing, finishing, and packaging. The soap is produced in large batches, consequently, the data are adjusted to reflect the average cost per 100g of soap. The data for type of soap for one month’s production are in Exhibit 1.

REQUIRED

Prepare a report for Ingrid Krause that addresses her interest in exploring an activity-based costing (ABC) system while including the following:

1. Is Ingrid’s expectation of changing her cost allocation of overhead from a traditional approach (one cost driver for allocation) to an ABC approach (multiple cost drivers applied to multiple cost pools) justifiable? If so, explain to her why it is.
2. Calculate the costs (of direct material, direct labour, and overhead) for each of the two representative types of soap using direct labour as the basis for the allocation of overhead.
3. Calculate the costs (of direct material, direct labour, and overhead) for each of the two representative types of soap using and ABC approach for the allocation of manufacturing costs.
4. Do the cost allocation calculations provide support for an ABC approach? Explain.
5. Would you advise Ingrid Krause to continue with her traditional costing approach or change to an ABC approach? Explain.

EXHIBIT 1 – COSTS FOR ONE MONTH’S PRODUCTION OF SOAP

EXHIBIT 2 – TIME REQUIRED FOR ONE MONTH’S PRODUCTION OF SOAP

James, Kinkaid, the owner of the Kinkaid Company was convinced by Douglas Shaw, one of his employees, that a fellow worker, Dick Miller, had been stealing money from the company. During a break in the company's conference room, Kinkaid fired Miller in front of other workers, accused him of stealing from the company, searched through his briefcase over his objections, and finally forcibly escorted him to his office to await the arrival of the police, which he had his assistant summon. Miller was indicted for embezzlement but subsequently was acquitted upon establishing his innocence. What rights, if any, does Miller have against Kinkaid? Please discuss.

2. Sandra Davis was a worker in a New York hotel owned by the Royal Crown International Hotel Co. One day, Henry Lambert, the manager of the hotel support team, gathered all the workers and told them that a great deal of theft had taken place within the hotel. He warned the assembled workers that unless someone confessed or revealed the name of the responsible person, he would start to fire all the workers according to seniority. When no one volunteered the information he was seeking, Lambert fired Sandra Davis, a single parent of three small children. Ms Davis became very upset, began to cry, sustained emotional distress, mental anguish, and loss of wages and earnings.

Ms. Davis sued the Royal Crown International Hotel Co and Henry Lambert alleging that the defendants acted recklessly and outrageously, intending to cause emotional distress and anguish. The defendants argued that damages for emotional distress are not recoverable unless physical injury occurs as a result of the distress. Will Davis be successful on her complaint? Please explain.

3. Fred Banyon, the owner of a rural property, has a place on his land where he piles trash. The pile has been there for three months. Carl, a neighbor of the adjoining property, without Fred's consent or knowledge, threw his trash onto the trash pile. Fred discovered what Carl had done and sued. What tort, if any, has Carl committed? Please explain.

James, Kinkaid, the owner of the Kinkaid Company was convinced by Douglas Shaw, one of his employees, that a fellow worker, Dick Miller, had been stealing money from the company. During a break in the company's conference room, Kinkaid fired Miller in front of other workers, accused him of stealing from the company, searched through his brief case over his objections, and finally forcibly escorted him to his office to await the arrival of the police, which he had his assistant summon. Miller was indicted for embezzlement but subsequently was acquitted upon establishing his innocence. What rights, if any, does Miller have against Kinkaid? Please discuss.

2. Sandra Davis was a worker in a New York hotel owned by the Royal Crown International Hotel Co. One day, Henry Lambert, the manager of the hotel support team, gathered all the workers and told them that a great deal of theft had taken place within the hotel. He warned the assembled workers that unless someone confessed or revealed the name of the responsible person, he would start to fire all the workers according to seniority. When no one volunteered the information he was seeking, Lambert fired Sandra Davis, a single parent of three small children. Ms Davis became very upset, began to cry, sustained emotional distress, mental anguish, and loss of wages and earnings.

Ms. Davis sued the Royal Crown International Hotel Co and Henry Lambert alleging that the defendants acted recklessly and outrageously, intending to cause emotional distress and anguish. The defendants argued that damages for emotional distress are not recoverable unless physical injury occurs as a result of the distress. Will Davis be successful on her complaint? Please explain.

3. Fred Banyon, the owner of a rural property, has a place on his land where he piles trash. The pile has been there for three months. Carl, a neighbor of the adjoining property, without Fred's consent or knowledge, threw his trash onto the trash pile. Fred discovered what Carl had done and sued. What tort, if any, has Carl committed? Please explain.

For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Big Winner is charging $300 per room per night.

If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner (falls OR rises) from (..........) rooms per night to (.........) rooms per night. Therefore, the income elasticity of demand is ( positive OR negative ) , meaning that hotel rooms at the Big Winner are ( an inferior good OR an normal good)  

If the price of an airline ticket from SFO to LAS were to increase by 10%, from $200 to $220 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Big Winner (falls OR rises)   from (..........) rooms per night to (.........) rooms per night. Because the cross-price elasticity of demand is ( positive OR negative ) , hotel rooms at the Big Winner and airline trips between SFO and LAS are ( substitutes OR complement ).

Big Winner is debating decreasing the price of its rooms to $275 per night. Under the initial demand conditions, you can see that this would cause its total revenue to ( decrease OR increase ) Decreasing the price will always have this effect on revenue when Big Winner is operating on the ( elastic OR inelastic ).