Given this data and assuming campers stay for the whole session, answer the following:
In: Economics
A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.
| Day | Revenue | Occupied | Day | Revenue | Occupied | ||||||||
| 1 | $ | 1,452 | 15 | 14 | $ | 1,425 | 65 | ||||||
| 2 | 1,361 | 20 | 15 | 1,445 | 51 | ||||||||
| 3 | 1,426 | 21 | 16 | 1,439 | 62 | ||||||||
| 4 | 1,470 | 15 | 17 | 1,348 | 45 | ||||||||
| 5 | 1,456 | 37 | 18 | 1,450 | 41 | ||||||||
| 6 | 1,430 | 29 | 19 | 1,431 | 62 | ||||||||
| 7 | 1,354 | 23 | 20 | 1,446 | 47 | ||||||||
| 8 | 1,442 | 15 | 21 | 1,485 | 43 | ||||||||
| 9 | 1,394 | 58 | 22 | 1,405 | 38 | ||||||||
| 10 | 1,459 | 62 | 23 | 1,461 | 51 | ||||||||
| 11 | 1,399 | 74 | 24 | 1,490 | 61 | ||||||||
| 12 | 1,458 | 88 | 25 | 1,426 | 39 | ||||||||
| 13 | 1,537 | 62 | |||||||||||
1. Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)
Pearson Correlation:
2.
c-1. State the decision rule for 0.01 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)
|
c-2. Compute the value of the test statistic.
|
D. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.)
________% of the variation in revenue is explained by variation in occupied rooms.
In: Statistics and Probability
AnimalChin! is a well-established company. Because of its market share and a fairly stable revenue stream, 3 years ago they successfully issued 20-year maturity 8% bonds, paying semiannually. Today, these bonds are selling for 95% of their face value. The total face value of these bonds is $4 billion. The company also issued 7% convertible bonds, paying semiannually, trading at 104% of their face value, maturing in 20 years. The total face value of these bonds is $3 billion. Finally, they just received a $2.2 billion term loan from a bank, the bank is currently charging a 6% interest on the loan. AnimalChin is publicly-traded. Today, its common stock trades for $18 per share. There are .8 billion shares outstanding. Its preferred stock is trading at $10 and just paid a dividend of $0.8. There are .3 billion preferred shares outstanding. The five financial analysts currently covering the company expect AnimalChin to grow at a similar pace as the whole skateboarding sec-tor: about 4%. The last dividend paid on common stock was $1.8 per share. The company’s most recent es-timated beta is 1.2. The risk-free rate is 4% and the expected market risk premium 8%. For the Veloce project the company’s CFO has decided to apply an adjustment factor of 1.5% to the compa-ny’s WACC to account for additional risk.
1) Calculate Animal Chin’s cost of all debt and the after-tax cost of debt. (Show work)
2) Calculate Animal Chin’s average cost of equity. (Show work)
3) Calculate Animal Chin’s cost of preferred. (Show work)
4) Calculate the market value of debt, equity, preferred, and the company’s total market value. (Show work)
5) Calculate the WACC. (Show work)
In: Finance
Solve the problem.
Let C(x) be the cost function and R(x) the revenue function.
Compute the marginal cost, marginal revenue, and the marginal
profit functions.
C(x) = 0.0004x3 - 0.036x2 + 200x +
30,000
R(x) = 350x
Select one:
A. C'(x) = 0.0012x2 - 0.072x + 200
R'(x) = 350
P'(x) = 0.0012x2 - 0.072x - 150
B. C'(x) = 0.0012x2 + 0.072x + 200
R'(x) = 350
P'(x) = 0.0012x2 + 0.072x + 150
C. C'(x) = 0.0012x2 - 0.072x + 200
R'(x) = 350
P'(x) = -0.0012x2 + 0.072x + 150
In: Math
Compare and contrast revenue budgeting and performance budgeting.
Determine which of the two budgets you think provides more useful information. Explain why.
In: Nursing
Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last year is as follows:
| Product A | Product B | Total | |
| sales volume (units) | 100 | 200 | 300 |
| Revenue | $6,000 | $30,000 | $36,000 |
| Costs: | |||
| direct materials | $1,200 | $6,000 | $7,200 |
| direct labor | $3,000 | $12,000 | $15,000 |
| OH costs | $11,700 | ||
| Profit | $2,100 |
Generic Motors uses ABC to allocate the overhead costs. It
examined the main activities in the firm, and decided to break up
the total overhead costs of $11,700 into 3 cost pools:
* "labor-related" - the total cost in this pool is $3,000,
allocated based on direct labor dollars
* "sales-related" - the total cost in this pool is $2,700,
allocated based on number of units
* "production setups" - the total cost in this pool is $6,000,
allocated based on the number of production setups. Product A
requires 10 setups. Product B requires is 40 setups.
Required:
a) for each cost pool, compute the activity rate and the amounts
allocated to product A and product B.
(hint: The amounts allocated to A and B from each pool should
add up to the total cost in that pool. To allocate the costs in the
"production setups" pool, you will have to compute the number of
batches. If the total number of batches for A and B does not add up
to 50, you are doing something wrong).
* "labor-related" pool:
activity rate = $ per DL$
Labor-related OH costs allocated to A = $
Labor_related OH costs allocated to B = $
* "sales-related" pool:
activity rate = $ per unit
Sales-related OH costs allocated to A = $
Sales_related OH costs allocated to B = $
* "production setups" pool:
activity rate = $ per setup
Production setups OH costs allocated to A = $
Production setups OH costs allocated to B = $
b) using the allocated OH costs from (a), compute the profit margin
for product A and product B.
If you get a negative number, enter it with a minus sign, i.e.,
enter negative $100 as -100, not ($100)
profit margin for A = $
profit margin for B = $
In: Accounting
Assessing Revenue Recognition Timing and Income Measurement
Discuss and justify when each of the following businesses should
recognize revenue and identify any income measurement issues that
are likely to arise.
a. RealMoney.Com, a division of TheStreet.Com provides investment
advice to customers for an up-front fee. It provides these
customers with password-protected access to its website where
customers can download certain investment reports. Real Money has
an obligation to provide updates on its website.
b. Oracle Corporation develops general ledger and other business
application software that it sells to its customers. The customer
pays an up-front fee to gain the right to use the software and a
monthly fee for support services.
c. Intuit Inc. develops tax preparation software that it sells to
its customers for a flat fee. No further payment is required and
the software cannot be returned, only exchanged if defective. d. A
developer of computer games sells its software with a 10-day right
of return period during which the software can be returned for a
full refund. After the 10-day period has expired, the software
cannot be returned.
In: Accounting
2) Demand and Marginal Revenue
a) Explain why a single price monopolist faces a downward sloping demand and why their downward sloping demand results in P>MR.
b) Explain why a 1) perfectly competitive market and 2) Perfect (first degree) price discriminating monopolist determines their demand curve, in general compare their demands, and despite their difference in demand why P=MR for both.
c) For a member of a cartel (for a firm in a cartel), explain the relationship between price and marginal revenue before they form a cartel and after they form a cartel. (Hint: why do cartels also have a quota for each member?)
In: Economics
In: Accounting
Account for notes receivable and accrued interest revenue
P4-47B Lilley & Taylor, partners in an accounting practice, completed the following selected transactions:
| 2016 | ||
|---|---|---|
| Oct. | 31 | Performed service for Berger Manufacturing Inc., receiving a $30,000, three-month, 5% note. |
| Dec. | 31 | Made an adjusting entry to accrue interest on the Berger note. |
| 2017 | ||
| Jan. | 31 | Collected the Berger note. |
| Feb. | 18 | Received a 90-day, 8%, $10,000 note from Emerson Ltd., on account. |
| 19 | Sold the Emerson note to a financial institution, receiving cash of $9,700. | |
| Nov. | 11 | Loaned $20,000 cash to Diaz Insurance Agency, receiving a 90-day, 9% note. |
| Dec. | 31 | Accrued the interest on the Diaz note. |
Record the transactions in Lilley & Taylor’s journal. Round all amounts to the nearest dollar. Explanations are not required.
Show what Lilley & Taylor will report on its comparative classified balance sheet at December 31, 2017, and December 31, 2016.
Requirements
In: Accounting