Problem #2
Pedroni Construction Company has entered into a contract beginning January 1, 2107, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period.
2017 2018 2019
Costs to date $270,000 $450,000 $610,000
Estimated costs to complete 330,000 150,000 0
Progress billing to date 270,000 550,000 900,000
Cash collected to date 240,000 500,000 900,000
Instructions:
In: Accounting
Ivanhoe Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $599,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $905,000. The following data pertain to the construction period. 2017 2018 2019 Costs to date $257,570 $413,310 $609,000 Estimated costs to complete 341,430 185,690 –0– Progress billings to date 270,000 551,000 905,000 Cash collected to date 240,000 501,000 905,000
Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.
Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.
In: Accounting
XYZ operates a movie theater. A movie ticket is $16.00 per ticket, and costs nothing. On average 40% of the customers will buy a soda ($6 each, cost $1); 60% will buy food ($6 average price with a cost of $2). The fixed costs are $387,600.
Make sure to show your weighted average calculations, "bundle" calculations, and final answers.
In: Accounting
A survey found that women's heights are normally distributed with mean 63.3 in. and standard deviation 2.3 in. The survey also found that men's heights are normally distributed with mean 69.1 in. and standard deviation 3.1 in. Most of the live characters employed at an amusement park have height requirements of a minimum of 57in. and a maximum of 62 in. Complete parts (a) and (b) below.
a. Find the percentage of men meeting the height requirement. What does the result suggest about the genders of the people who are employed as characters at the amusement park?
The percentage of men who meet the height requirement is ----- (Round to two decimal places as needed.)
b.If the height requirements are changed to exclude only the tallest 50% of men and the shortest 5% of men, what are the new height requirements?
In: Statistics and Probability
A survey found that women's heights are normally distributed with mean 63.8 in. and standard deviation 3.9 in. The survey also found that men's heights are normally distributed with mean 67.7 in. and standard deviation 3.5 in. Most of the live characters employed at an amusement park have height requirements of a minimum of 56 in. and a maximum of 62 in. Complete parts (a) and (b) below.
a. Find the percentage of men meeting the height requirement. What does the result suggest about the genders of the people who are employed as characters at the amusement park?
The percentage of men who meet the height requirement is _%
b. If the height requirements are changed to exclude only the tallest 50% of men and the shortest 5% of men, what are the new height requirements?
The new height requirements are a minimum of _ in. and a maximum of _ in.
In: Statistics and Probability
Consider a hotel which can supply an unlimited number of hotel rooms at the constant marginal cost c = 20 per room per night, so that the hotel’s total cost function is given by C(q) = 20q.1 Assume that demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100 − p, while on non-game-days demand is described by the demand curve q = 60 − 2p.
First suppose that the hotel acts as a price taker.
(a) What does it mean for the hotel to act as a price taker? What condition determines a price taker’s optimal supply decision?
(b) Assuming the hotel acts as a price taker, what will be the equilibrium price and quantity sold on game days? What about on non-game-days? (Remember, the hotel’s marginal cost is constant!)
(c) Briefly discuss, without solving, how your results in (b) would change if the hotel instead had increasing marginal costs (say for example MC(q) = qrather than MC = 20).
In: Economics
Question 2: AHP
A tourism company want to evaluate four hotels and select the best
one using four criteria project's COST, CLEANNESS and DISTANCE and
SIZE of the HOTEL. Assume that the company prefers; cleanness two
times more than size, cost two times more than distance, and
distance 1.5 times more than size.
|
Criterion |
|
|
|
|
||||
|
Cleanness |
Very good |
|
excellent |
average |
||||
|
Cost ($) |
200 |
175 |
250 |
190 |
||||
|
SIZE of rooms (m2) |
15 |
12 |
20 |
25 |
||||
|
Distance from Downtown (km) |
0 |
4 |
2 |
7 |
1. Calculate the weights of each criteria
2. Generate the pair-wise comparison of hotels based on each
criterion using the scale of Saaty (1-9)
3. Calculate the score of each hotel based on each criterion
4. Calculate the score of each hotel. Justify the best selection
for the company.
5. Calculate CI, and CR. What does the value of CT means?
In: Advanced Math
In: Statistics and Probability
E14-23
Weyden Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Weyden's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2017. You are presented with the following income statement information for 2016:
|
Hotel |
Restaurant |
Casino |
|
|
Revenues |
$17,592,000 |
$6,293,000 |
$12,400,000 |
|
Direct costs |
9,775,000 |
3,725,000 |
4,392,300 |
|
Segment margin |
$7,817,000 |
$2,568,000 |
$8,007,700 |
You are also given the following data on the three divisions.
|
Hotel |
Restaurant |
Casino |
|
|
Floor space (square feet) |
115,000 |
23,000 |
92,000 |
|
Number of employees |
200 |
50 |
250 |
You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2016 were $14,630,000.
|
1. |
Calculate division margins in percentage terms prior to allocating fixed overhead costs. |
|
2. |
Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. |
|
3. |
Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? |
|
4. |
Would you recommend closing any of the three divisions (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? |
In: Accounting
. The Green Shingle purchased a parcel of land 6 years ago for $299,500. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $28,000 a year. The Green Shingle is now considering building a hotel on the site. The current value of the land is $347,500. The firm has a mortgage secured by the property with $12,670 annual interest expenses, and would need to spend $64,000 to improve the land for construction. Which of the following is correct?
A. The purchase price of the parcel of land 6 years ago is a sunk
cost for the project.
B. The current value of the land is an opportunity cost for the
project.
C. The $12,670 annual interest expenses are a relevant cash flow
for the project.
D. The $64,000 expense to improve the land is an irrelevant cash
flow for the project.
E. A and B only.
F. A and C only.
In: Accounting