The following data represent the daily hotel cost and rental car cost for 20 U.S cities during a week in October 2003

CITY HOTEL CARS

San Francisco               205               47

Los Angeles               179               41

Seattle                   185               49

Phoenix               210               38

Denver                   128               32

Dallas                   145               48

Houston               177               49

Minneapolis               117               41

Chicago               221               56

St. Louis               159               41

New Orleans               205               50

Detroit                   128               32

Cleveland               165               34

Atlanta               180               46

Orlando               198               41

Miami                   158               40

Pittsburgh               132               39

Boston                   283               67

New York               269               69

Washington DC           204               40

FOR EACH VARIABLE ( hotel cost and car cost)

a. Compute the mean, median, first quartile, and third quartile)

b. Compute the variance, standard deviation, range, interquartile range, coefficient of Variation

c. Are the data skewed? If so, how?

d. Base don’t he results a) through c), what conclusions can you reach concerning the daily costs of a hotel and rental car

An amusement park has estimated the following demand equation for the average park guest

Q=16-2P

Where Q represents the number of rides per guest and P the price per ride. The total cost of providing rides to a guest is

TC=2+0.5Q

If a one-price policy is used, how much should it charge per ride if the park wishes to maximize its profit?

What is the park's profit for each guest?

If a two-part tariff policy is used, what admission fee should the park charge to maximize its profit?

What is the park's profit for each guest?

(please show work as I am confused. Thanks!!)

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: Qa = 20 – Pa where a is adult market Qc = 30 – 2 Pc Where c is children market QT = 50 – 3 PT where T is the two markets combined Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit: A) Calculate the price, quantity and profit if the amusement park charges a different price in each market. B) Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

Multiple-Step Income Statement

On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9.

b. What is a major advantage of the multiple-step income statement over the single-step income statement?

Multiple-Step Income Statement

On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended March 31, 2018.

b. What is a major advantage of the multiple-step income statement over the single-step income statement?

1. Multiple-Step Income Statement

   On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:

   <

   Accounts Receivable	$170,000		Inventory	980,000
   Accumulated Depreciation—Building	$750,000		Notes Payable	250,000
   Administrative Expenses	435,000		Office Supplies	20,000
   Building	3,500,000		Retained Earnings	1,987,000
   Cash	80,000		Salaries Payable	8,000
   Common Stock	300,000		Sales	8,245,000
   Cost of Goods Sold	5,500,000		Selling Expenses	575,000
   Dividends	175,000		Store Supplies	90,000
   Interest Expense	15,000

   a. Prepare a multiple-step income statement for the year ended March 31, 2018.

   Royal Furnishings Company
   Income Statement
   For the Year Ended March 31, 2018
   		$
   Gross profit		$
   Expenses:
   	$
   Total expenses
   		$
   Other revenue and expense:
   		$

   b. What is a major advantage of the multiple-step income statement over the single-step income statement?

Donald has recently lost his job as the President of a large North American country and has returned to the family hotel business. Their most prestigious hotel Tramp Tavern has been closed for two years whilst it has undergone refurbishment and the hotel is about to be relaunched. The hotel runs conventionally and has a number of cost centres such as Reception, Concierge, Repairs and Maintenance which are relatively fixed. The hotel also has variable costs relating to cleaning and servicing rooms. You have been provided with the following data regarding the re-furbished Tramp Tavern: Available Rooms 400 Average Room Tariff (per night) $230 Fixed Financing Costs $10 million Fixed Operating Costs $15 million Variable Operating Costs (per night when occupied) $50 Required a) What is the breakeven point (in total room rentals for the year) for the Tramp Tavern? Show the percentage of occupancy that the hotel must achieve in order to break even (show all calculations)

• Check My Work (2 remaining)

Application: Elasticity and hotel rooms.

The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool.

Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.

For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Big Winner is charging $350 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 (Negative or Positive) , meaning that hotel rooms at the Big Winner are ( A normal good or An inferior good ).

If the price of an airline ticket from LAX to LAS were to increase by 20%, from $250 to $300 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 (Negative or Positive), hotel rooms at the Big Winner and airline trips between LAX and LAS are (Substitutes or Complements).

Big Winner is debating decreasing the price of its rooms to $325 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) portion of its demand curve.