Please answer/discuss the following questions?

Assume you are the RM for a newly opened theme park in a major southwestern city. Your guests will consist primarily of families visiting the park, as well as schoolchildren on field trips and church youth groups. Yours is the only such park within 150 miles. Identify at least five non-cost factors you would want to consider as you determine the prices that will be charged for the menu items you will sell. Explain why you selected each factor chosen.

A Bacon Factory is located in a small town. Also in the town is a Water Park. The smell of the Bacon factory has adversely affected the Water Park such that it has put in air cleaning equipment to eradicate the odor created by the factory.

The cost function of the Bacon Factory is: CBF= B² + 4B^1/2 + (1 − x)²

where B denotes the quantity of bacon produced annually and x denotes the quantity of pollutants that A creates in a given year.

Thus, the Bacon Factory can limit production costs by eliminating its air scrubbers. However, the air pollution increases the costs for the water park W, whose cost function is: C_WP = W² + 2x where W denotes the number of visitors to the Water Park on an annual basis. Suppose that the unit price of admission to the water park is $3 and that the unit price of bacon is $32.5 per unit.

1. Compute the profit maximizing visits (represented by W) created by Firm W (assuming W behaves competitively in the output market). Notice that W does not choose x. Also, compute W’s profits.

2. Suppose now that the two firms B and W merge, creating B&W. The management of B&W now maximizes B&W’s profits by appropriately choosing x, B, and W. Find the quantities of Bacon, Water Park Visits, and pollutants that the new firm produces. Also, find the profits of B&W.

Recording Entries under the Fair Value Option—Equity Method

Assume that Fireside Inc. purchased 30% of the common stock of Theater Supplies Corporation on January 1, 2020, for $270,000. Fireside Inc. elected to account for its investment using the fair value option. During the year, Fireside Inc. reported net income of $216,000 and declared and paid dividends of $40,500. The fair value of Fireside’s investment in Theater Supplies common stock is $283,500. Assume that Fireside Inc. has significant influence over Theater Supplies Corporation.

a. What amount would Fireside Inc. report on its balance sheet on December 31, 2020, for its investment in Theater Supplies Corporation?

b. What amount would Fireside Inc. report in its income statement for the year ended December 31, 2020, for its investment in Theater Supplies Corporation?

Note: Use a negative sign to indicate a loss.

Option #1: NFP financial reporting

The Four Corners Theater’s mission is to increase access to the arts for the community of Four Corners. The Theater group owns a debt-financed theater and puts on several plays throughout the year, as well as providing facilities for many other activities. Four Corner’s Theater is a well-established, not-for profit organization exempt under IRC Sec. 501(c)(3).

Identify whether the following activities would be subject to unrelated business income tax (UBIT) and explain why or why not.

1. Rental of the facility to the high school drama club.
2. Fees for summer acting classes for primary school students.
3. Sale of tickets to plays put on by the Four Corner’s Theater group.
4. Sale of season ticket membership list to a local book store.
5. Rental of two apartments in the facility.
6. Rental of meeting space to other local 501(c)(3) organizations for their monthly meetings.
7. Internet sales of gift shop items with the Four Corner’s Theater logo.
8. Lease of the facility’s parking lot to the local university on football game days.

Serial Case

1. C6-72Calculate and compare cost estimates using high-low and regression methods (Learning Objectives 4 & 5)

This case is a continuation of the Caesars Entertainment Corporation serial case that began in Chapter 1. Refer to the introductory story in Chapter 1, here for additional background. (The components of the Caesars serial case can be completed in any order.)

Caesar Entertainment Corporation’s Form 10-K contains a variety of data in addition to financial statements. Below is a list that contains Caesars’ food and beverage costs (adapted) taken from its Statements of Operations for the past 22 years. In addition, the number of hotel rooms and suites owned by Caesars at the end of each of those 22 years has been gathered from other information provided in the Form 10-Ks.

Requirements (use excel)

1. Using the high-low method, find the following cost estimates:
   1. Variable food and beverage cost per hotel room/suite
   2. Fixed food and beverage cost per hotel room/suite
2. Perform a regression analysis using Excel. Use # of hotel rooms & suites as the X and the Food and beverage costs as the Y in your regression analysis.
   1. What is the estimated variable food and beverage cost per hotel room/suite?
   2. What is the estimated fixed food and beverage cost per hotel room/suite?
   3. In your opinion, is the number of hotel rooms and suites a good predictor of Caesars’ food and beverage costs? Why or why not?

The Tikatuli Theater is owned by Mithila Ali. All Facilities were completed on January 31, 2020. At this time the ledger showed: No 101 cash Taka TK 6000. No 141 land taka 10000, No.146 Buildings (concession Stand, projection room, ticket booth, and screen) Taka 8000. No 157 Equipment Tk 6000. No 201 Accounts payable Tk 2000. No. 276 Mortgage payable TK 8000 and No.301 Mithila Ali, capital 20000 Tk. During February the following transaction occurred.
Feb 2: Ordered two additional films at tk 1500 each
Feb 3: Made taka 3000 payment on mortgage and tk 1000 for accounts payable due.
Feb 4: Tikatuli Theater contracted with Bolaka Institute to operate the concession receipts. Bolaka is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession Stand.
Feb 9: Received one of the films to order on February 2 was billed Taka. The film will be shown in February.
Feb 10: Purchased Theater supplies on credit 1500.
Feb 11: Receive a credit memorandum for unsatisfactory theater supplies purchased on feb 10 and returned for credit taka 500.
Feb 17: Received state from Bolaka showing gross concession receipts of tk 1000 and the balance due to Tikatuli Theater of taka 170 (Tk 1000*17%) for February Bolaka paid one half of the balance due and will remit the remainder on march 5
Feb 20: Prepaid Tk. 900 rental on special film to be run in March 25
Feb 30: Cost of unused Supplies Taka 1000.
Instructions:
a. Record the transactions using appropriate journal.
b. Post them in appropriate accounts. (prepare only Cash, Purchase, Accounts payable, Rent expense, Supplies Account)
[10]
Question 5. [Marks: 10]
a)

Consider a new hotel deciding on cleaning staff hiring for the upcoming season. Cleaning times depend on whether it is a stay-over room or a check-out. Suppose that a guest will check-out on a given day with probability 40%. From your experience in similar hotels you estimate that a stay-over room cleaning time is well-described with normal distribution with average 15 minutes and standard deviation 1 minute. Check-out room cleaning time is also normal but with average 30 minutes and standard deviation 10 minutes.

i. Consider an occupied room (stay-over or check-out), what is the average cleaning time for such a room?

ii. Find the variance for the cleaning time for an occupied room.

iii. Suppose that the hotel has 200 rooms, and you estimate that on a given day a room will be occupied with probability 90%. Only occupied rooms need cleaning. Find the average total cleaning time for the hotel. iv. Find the variance of the total cleaning time for the hotel.

Hints: remember var(X) = EX^2 − (EX)^2 .

Firms pursuing a differentiation strategy primarily seek to:

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: Price ($) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2 The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits. Calculate the price, quantity, and profit if: The amusement park charges a different price in each market. The amusement park charges the same price in the two markets combined. Explain the difference in the profit realized under the two situations.

HAS TO BE SOLVED IN EXCEL

Exercise 5A–1 High-Low Method LO5–11 NEEDS to be solved and shown in excel The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 1,736 $  4,127 February 1,904 $4,207 March 2,356 $5,083 April 960 $2,857 May 360 $   1,871 June 744 $2,696 July 2,108 $4,670 August 2,406 $ 5,148 September 840 $   2,691 October 124 $   1,588 November 720 $2,454 December 1,364 $3,529 Required: Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month