American Airlines revenue is as follows:

- What is the trend analysis for American Airlines in the past three years?

- the projection of its revenue growth in the coming two years?

- The trend of American Airlines profitability in the past 3 years

Palantir Corp. sells specialized equipment to the healthcare industry. Palantir pays its sales agents a salary plus a 5% commission on sales. Sales agents employed by the company sold 10 Osgilith MRI machines that were delivered and installed in January 2017. The MRI machine sells for $45,600 due at the end of 12 months. Alternatively, customers may elect to pay $40,000 at delivery and installation. All customers purchasing machines during January elected to pay at the end of the 12-month period.

Required:

Chart of Accounts

Analysis

Determine the transaction price of the Osgilith MRI machines, and discuss how Palantir would account for the sales commission.

The transaction price for 10 machines is  when customers elect to pay at the end of the 12-month period. Palantir Corp. should recognize revenue upon delivery and installation   in the amount of  per machine.

In this case, the sales commission is expensed   in January when the machines are delivered and installed.

The transaction price is the sell price or the cost to the customer. Revenue is calculated using the different pricing options. The treatment of sales commissions depends on the timing of the performance obligation, or the revenue recognition.

Discuss whether the delayed payment contract contains a significant financing component.

Palantir is receiving payment 12 months after the delivery and installation of the equipment, therefore theywill   recognize a portion of the $______received as a financing component. The financing component is therefore$5,600   per machine.

General Journal

Prepare the journal entries for 2017 for the Osgilith MRI machines sold by Palantir to customers who elect the delayed payment option.

Additional instructions: Prepare four entries to record sales and commission on January 1st, and cash received on account and interest earned for the year on December 31st.

GENERAL JOURNAL

Prepare the 2017 journal entries that Palantir would make for the 10 Osgilith MRI machines that are sold if customers elect to pay at delivery on January 1.

GENERAL JOURNAL

Use the accompanying paired data consisting of registered boats​ (tens of​ thousands) and manatee fatalities from boat encounters. Let x represent the number of registered boats and let y represent the corresponding number of manatee deaths. Use the given number of registered boats and the given confidence level to construct a prediction interval estimate of manatee deaths. Use x=89 (for 89​0,000 registered​ boats) with a 99​% confidence level.

Boats (tens of thousands)   Manatees
67    54
68    37
66    34
73    49
74    40
70    59
76    56
82    67
83    84
83    80
90    82
91    94
95   74
93   69
97   78
99   93
97   73
98   91
98   97
91   81
90   87
90   82
89   73
90   7

Find the indicated prediction interval.

___manatees < y < manatees

​(Round to three decimal places as​ needed.)

A clinic has one receptionist, one doctor and one nurse. The clinic opens at time zero and patients begin to arrive some time later. Patients arrive at the clinic according to the following probability distribution:

A patient may need to see only the doctor, only the nurse, or both the doctor and the nurse together. If a patient needs to see both the doctor and nurse, the patient must wait until both the doctor and nurse are free. The attention needed by a patient who comes to the clinic is defined by the following probability distribution:

The “service time” for a patient is the length of the time that the patient spends in consultation with the doctor/nurse/both, depending on the patient’s needs. The service time EXCLUDES the time that the patient spends waiting to see the doctor/nurse/both if they are busy. Based on whether the patient sees the doctor, the nurse, or both, the service time of each patient (in minutes) is defined by the following probability distributions.

Design a SIMULATION BY HAND of this clinic to simulate the arrival and departure of 8 patients using the following random numbers ranging 00 to 99 generated for each random variable:

• Time between arrivals

64        34        15        50        94        81        27        79

• The attention needed by the patient for each patient arriving in order 06     77        99 53        64        31        74        92

• The service time for the patient, in order of arrival

48        58        97        88        75        94        69        56

Part a

For each of the 8 patients, simulate the three random variables from above:

1. the length of time between their arrivals,
2. whom they need to see, and
3. the service time spent in consultation.

Part b

Assume that the clinic opens at 9:00am and the first arrival occurs after the “time between arrivals” of the first patient (e.g. if the time between arrivals of patient 1 is 5 mins, then patient 1 arrives at 9:05am). Calculate each patient’s arrival time and departure time by completing the following table:

Part c

From the results in (b), determine the following performance measures based on the 8 patients:

1. The average time that a patient must wait before service starts (i.e. before seeing the doctor/nurse/both)
2. The probability that the patient needs to wait for less than 30 minutes before service starts.

According to a recent​ poll, 27​% of adults in a certain area have high levels of cholesterol. They report that such elevated levels​ "could be financially devastating to the regions healthcare​ system" and are a major concern to health insurance providers. Assume the standard deviation from the recent studies is accurate and known. According to recent​ studies, cholesterol levels in healthy adults from the area average about 206 mg/dL, with a standard deviation of about 35 ​mg/dL, and are roughly Normally distributed. If the cholesterol levels of a sample of 40 healthy adults from the region is​ taken, answer parts ​(a) through ​(d).

​(a) What is the probability that the mean cholesterol level of the sample will be no more than 206?

​P(y≤206)= (Round to three decimal places as​ needed.)​

(b) What is the probability that the mean cholesterol level of the sample will be between 201and 211​?

​P(201<y <211​)= ​(Round to three decimal places as​ needed.)​

(c) What is the probability that the mean cholesterol level of the sample will be less than 196​?

​P(y <196)= ​(Round to three decimal places as​ needed.)​

(d) What is the probability that the mean cholesterol level of the sample will be greater than 218​?

​P(y>218)= ​(Round to three decimal places as​ needed.)

Elatrip Company provides package tours for customers. The following transactions were completed by the company during September 2019.

Sept 1   Shareholders invested $ 500,000 into the business in exchange for ordinary shares.

Sept 2   Purchased $600 worth of office supplies for cash.

Sept 4   Purchased furniture from Damro Company for $5,000 and issued a 90 day, 8% promissory note.

Sept 7   Purchased equipment for $800 and postponed payment until September 28.

Sept 11 Earned revenue of $4,000, of which $3,000 is collected in cash and the balance is due on September 18.

Sept 13 Purchased a commuter van for $100,000. Elatrip paid $60,000 in cash and signed a 6 month, 7% promissory note for the balance due.

Sept 15 Company received $2,000 cash in advance for the service to be rendered on October 5.

Sept 16 Paid $6,000 rent for 2 months. (October and November 2017)

Sept 18 Collected the balance due from September 11.

Sept 20 Performed services for $ 5,000 and received a one month, 9% promissory note from customer.

Sept 25 Incurred $1,000 for repair and maintenance cost and the company issued a check for the amount.

Sept 27 A $800 bill was received for electricity and water expense for the month. The entire amount is due on October 1.

Sept 28 Company paid the balance due from September 7.

Sept 30 Paid $2,000 for employees’ salaries.

The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 113 Notes receivable, No. 124 Office supplies, 136 Prepaid rent, No.140 Furniture, No 145 Equipment, No 156 Commuter van, No 201 Accounts payable, No 211 Notes payable, No 220 Unearned service revenue, No 311 Share capital- ordinary, No 400 Service revenue, No 726 Repair and maintenance expense, No 735 Utilities expense, No 738 Salaries expense.

1)JOURNALIZE

A firm will purchase additional workers as long as worker's

Select one:

a. marginal revenue product is greater than zero

b. marginal revenue product is greater than or equal to its marginal resource cost

c. marginal revenue product equals the product price

d. marginal revenue product is less than its marginal resource cost

e. total revenue product is greater than its marginal resource cost

A firm will purchase additional workers as long as worker's

Select one:

a. marginal revenue product is greater than zero

b. marginal revenue product is greater than or equal to its marginal resource cost

c. marginal revenue product equals the product price

d. marginal revenue product is less than its marginal resource cost

e. total revenue product is greater than its marginal resource cost

A firm will purchase additional workers as long as worker's

Select one:

a. marginal revenue product is greater than zero

b. marginal revenue product is greater than or equal to its marginal resource cost

c. marginal revenue product equals the product price

d. marginal revenue product is less than its marginal resource cost

e. total revenue product is greater than its marginal resource cost

Tim's sandwiches, a leading producer of frozen sandwiches, is considering hiring more workers to keep up with expanding demand. If Tim's wishes to maximize profits, it should hire more workers as long as

Select one:

a. the additional revenue generated by each additional worker is positive.

b. the additional revenue generated by the next worker to be hired is greater than the additional cost of hiring that worker.

c. the additional revenue generated by selling one more sandwich is greater than the hourly wage of the next worker.

d. each additional worker can produce at least as many sandwiches per hour as the average of all the other workers.

If 25 workers produce a total of 2,500 widgets and 26 workers produce a total of 2,574 widgets,

Select one:

a. the marginal product of the 26th worker is 2,574

b. the marginal product of the 26th worker is 100 widgets

c. the marginal product of the 26th worker is 74 widgets

d. the marginal product of the 26th worker is 99 widgets

e. diminishing returns begins with the 26th worker

(DO NOT NEED TO PROVIDE EXPLANATION!)

COMPUTER CALCULATIONS:

I need to know how to code in R for the solutions, not by hand.

2. Look at the data in Table 7.18 on page 368 of the textbook. These data are also

given in the SAS code labeled “SAS_basketball_goal_data” and R code labeled basketball goal data .

The dependent variable is goals and the independent variable is height of basketball players.

Complete a SAS /R program and answer the following questions about the data set:

(a) Does a scatter plot indicate a linear relationship between the two variables?

Is there anything disconcerting about the scatter plot? Explain.

(b) Fit the least-squares regression line (using SAS / R) and interpret the estimated slope

in the context of this data set. Does it make sense to interpret the estimated intercept? Explain.

(c) For these data, what is the unbiased estimate of the error variance? (Give a number.)

(d) Using the SAS / R output, test the hypothesis that the true slope of the regression line

is zero (as opposed to nonzero). State the appropriate null and alternative hypotheses,

give the value of the test statistic and give the appropriate P-value. (Use significance

level of 0.05.) Explain what this means in terms of the relationship between the two

variables.

(e) Using SAS / R, find a 95% confidence interval for the mean basketball goal for

a player with a height of 77 inches. In addition find a 95% prediction interval for

basketball goal for a player with a height of 77 inches.

Data:

Tar Heel Travel Agency has purchased 5,000 tickets to the “Almost-A-Bowl” game which will host the Tarheels in December.   The company’s trip planners are suggesting three levels of service for their bowl travel packages: Premium, Value, and Cheap-Cheap. They have determined the following potential customer segments are interested in purchasing these packages:

·      Die-Hard Fans (1,500 maximum travelers)

·      Fair Weather Fans (3,000 maximum travelers)

·      Students (500 maximum travelers)

Further, assume for simplicity that:

·      Maximum willingness to pay (price) for each segment and package marginal costs are presented in table below.

·      There are no additional costs of market development.

·      There are no fixed costs incurred for setting up each package class.

·      Assume that segments that receive zero surplus, still will buy the ticket.

·      If customers get the same surplus from two fare classes, they will buy the higher class of service.

The trip planners are considering three levels of service for their bowl travel packages as follows:

a) What is the best price point for each class of ticket in order to maximize revenue?

Optimal Price Point Premium Package to maximize revenue: $     ____   .

Maximum Revenue for Premium Package: $      ____     Million

Optimal Price Point for Value Package to maximize revenue: $ ____      .

Maximum Revenue for Value Package: $       ____    Million

Optimal Price Point for Cheap-Cheap Package to maximize revenue: $ ______      .

Maximum Revenue for Cheap-Cheap Package: $       ____    Million

b) What is the best price point for each class of ticket in order to maximize profit (package costs are provided in the table above)?

Optimal Price Point Premium Package to maximize profit: $     ____   .

Maximum Profit for Premium Package: $      ____     Million

Optimal Price Point for Value Package to maximize profit: $ ____      .

Maximum Profit for Value Package: $       ____    Million

Optimal Price Point for Cheap-Cheap Package to maximize profit: $ ______      .

Maximum Profit for Cheap-Cheap Package: $       ____    Million

c) Without making any calculations, what suggestions do you have to allow the travel agency to increase its profits over what you presented in part (b)? What do you have to be concerned about when determining the correct pricing for the various options?

5. Total sales of ABC Corp. are $ 100 M and net income is $ 11,5M. The manager thinks eliminating the group marginal customers that constitutes the 10% of the total sales, will increase. Distributing the incomes and expenses of the Company between the marginal customers and credible customers based on income statement, indicate whether the company should eliminate marginal customers or not.

Percentage of sales total fixed variable

Cost of sales (%) 70 - 70 Overhead cost (%) 15 8 7

Collection exp.(%) 1 - 1

Other exp. (%) 2.5 2 0.5