The owner of Gino’s Pizza restaurant chain believes that if a restaurant is located near a college campus, then there is a linear relationship between sales and the size of the student population. Suppose data are collected from a sample of n = 10 Gino’s Pizza restaurants located near college campuses with the following reported sample statistics:

We want to find the equation of the least-squares regression line predicting quarterly pizza sales (y) from student population (x).

1. Estimate and interpret the sample correlation between population and sales.

2. Estimate the slope of the linear regression equation of Sales on Population where Population is the dependent variable.

3. Estimate the intercept of the linear regression equation of Sales on Population where Population is the dependent variable.

4. Compute the Total Sum of Squares (SST)

5. Compute the Regression Sum of Squares (SSR)

6. Compute the Error Sum of Squares (SSE)

7. Complete the ANOVA Table for Regression

1. What is the standard error for the slope estimate?

2. Develop a 95% confidence interval estimate for β₁.

3. Test for the Significance of β₁. Use α = 0.05

4. Use an F-test to determine if the regression model is significant.

5. Compute the R² and interpret.

6. Develop a 95% Prediction Interval for a single location that has a student population of 17.

7. Develop a 95% Confidence Interval for the average Sales for a group of locations where the student population is 17.

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.

Required:

For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost.

1. The cost of a hard drive installed in a computer.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

2. The cost of advertising in the Puget Sound Computer User newspaper.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

3. The wages of employees who assemble computers from components.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

4. Sales commissions paid to the company’s salespeople.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

5. The salary of the assembly shop’s supervisor.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

6. The salary of the company’s accountant.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

7. Depreciation on equipment used to test assembled computers before release to customers.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

Required

   (a)       Using the above data, compute the gross profit to be recognised for each of the three years, assuming that the outcome of the contract can be reliably estimated.  

   (b)   Prepare the journal entries for the 2015 financial year using the percentage-of-completion method.

   (c)   Prepare the journal entries for the 2015 financial year, assuming the stage of completion cannot be reliably assessed.

Sun City Limited commences construction of a multi-purpose water park on 1 July 2014 for Pretoria Limited. Sun City Limited signs a fixed-price contract for total revenues of $50 million. The project is expected to be completed by the end of 2017 and Pretoria Limited controls the asset throughout the period of construction. The expected cost as at the commencement of construction is $38 million. The estimated costs of a construction project might change throughout the project—in this example, they do change. The following data relates to the project (the financial years end on 30 June): Required (a) Using the above data, compute the gross profit to be recognised for each of the three years, assuming that the outcome of the contract can be reliably estimated.   (b) Prepare the journal entries for the 2015 financial year using the percentage-of-completion method. (c) Prepare the journal entries for the 2015 financial year, assuming the stage of completion cannot be reliably assessed.

Heating, Ventilating and Air Conditioning (HVAC) Systems create and maintain the levels of comfort required by guests and employees. HVAC systems must be properly selected, operated and maintained if they are they are to provide an appropriate level of comfort.

How do you think a hotel building stays cool?

Discuss four risks that your company is likely to be exposed to if it goes ahead with debt finance as a source of finance and explain with 5 points how this decision will affect the return to the equity holders or shareholders of your company (hotel) following the arguments of M&M proposition 2.

Define each of the following resources.

7.1. Central park:

7.2. I-95 interstate thruway from Maine to Florida:

7.3. Fish in a stream in NY State:

7.4. US Navy medical hospital supply ship now docked in NYC:

7.5. Zoom:

How can TV Networks and Broadway

plays use revenue management?

"Revenue management is an extremely important concept within the hospitality industry, because it allows hotel owners to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results"