8. Adam, Bonnie, Chuck, Dave and Elaine are engineers from different companies attending a professional conference at the University of Arizona in Tucson. There are seven hotels near the campus. Each engineer will stay at a randomly picked hotel. a. What is the probability that they will all stay at the same hotel? b. What is the probability that they will all stay at different hotels? c. Adam has a crush on Bonnie, what is the probability that they will stay at the same hotel? d. What is the probability that exactly two of the five engineers will stay at the same hotel with no one else staying at a same hotel?

12/31/03 had the following balances in its S.E section of the B.S:

Common Stock, $.50 par $300k

APIC - Common Stock $4 million

APIC - Share Repurchase $50k

R.E $2 million

Treasury Stock, at cost, 30k shares $(600k)

During 2004 completed the follwing transactions:

2/20: Issued40k shares of common stock (with a $.50 par value) in exchange for a machine w/ an appraised value of $800k

6/17: Resold 15k shares of treasury stock for $240k (The treasury stock was resold relates to common stock that was originally issue for $18 per share & was reacquired for $20 per share during 2003.)

12/2: Issued 10k shares of common stock for $24 per share. Share issue costs to promote the stock issuance totaled $15k

12/31: Reported NI of $1.5 million and other comprehensve income of $200k on the companys statement of comprehensive income.

Using the info provided above, what would they report within its 12/31/2004 S.E section of the B.S.

Provide the following amounts as they would appear in the B.S at 12/31/2004.

#1: APIC - Common Stock __________

#2: Retained Earnings __________

#3: Treasury Stock __________

#4: Common Shares Issued __________

Integrative Exercise
Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel

Using the High-Low Method to Estimate Variable and Fixed Costs

Located on Swiftcurrent Lake in Glacier National Park, Many Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 20X1 to begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Native Americans living near the park. Due to the great success of the canoes, the hotel began manufacturing and selling paddles as well in 20X3. Many hotel guests purchase a canoe and paddles for use in self-guided tours of Swiftcurrent Lake. Because production of the two products began in different years, the canoes and paddles are produced in separate production facilities and employ different laborers. Each canoe sells for $500, and each paddle sells for $50. A 20X3 fire destroyed the hotel’s accounting records. However, a new system put into place before the 20X4 season provides the following aggregated data for the hotel’s canoe and paddle manufacturing and marketing activities:

Required:

1. High-Low Cost Estimation Method

a. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the canoe product line.

b. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the paddle product line.

2. Cost-Volume-Profit Analysis, Single-Product Setting
Use CVP analysis to calculate the break-even point in units for

a. The canoe product line only (i.e., single-product setting)

b. The paddle product line only (i.e., single-product setting)

3. Cost-Volume-Profit Analysis, Multiple-Product Setting

The hotel's accounting system data show an average sales mix of approximately 300 canoes and 1,200 paddles each season. Significantly more paddles are sold relative to canoes because some inexperienced canoe guests accidentally break one or more paddles, while other guests purchase additional paddles as presents for friends and relatives. In addition, for this multiple-product CVP analysis, assume the existence of an additional $30,000 of common fixed costs for a customer service hotline used for both canoe and paddle customers. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined (i.e., the multiple-product setting).

4. Cost Classification

a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period costs.

All manufacturing costs are costs. All marketing costs and customer hotline costs are costs

b. For the period costs, further classify them into either selling expenses or general and administrative expenses.

Marketing costs are selling oriented; therefore, the marketing period costs would be further classified as . Customer hotline costs relate to the customer service section of the value chain and would be further classified as .

5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting

If both the variable and fixed production costs (refer to your answer to Requirement 1) associated with the canoe product line increased by 5% (beyond the estimate from the high-low analysis), how many canoes and paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3.

6. Margin of Safety

Calculate the hotel’s margin of safety (both in units and in sales dollars) for Many Glacier Hotel, assuming the same facts as in Requirement 3, and assuming that it sells 700 canoes and 2,500 paddles next year.
total MOS units above total BE units

$ MOS in sales dollars

Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel

Using the High-Low Method to Estimate Variable and Fixed Costs

Located on Swiftcurrent Lake in Glacier National Park, Many Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 20X1 to begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Native Americans living near the park. Due to the great success of the canoes, the hotel began manufacturing and selling paddles as well in 20X3. Many hotel guests purchase a canoe and paddles for use in self-guided tours of Swiftcurrent Lake. Because production of the two products began in different years, the canoes and paddles are produced in separate production facilities and employ different laborers. Each canoe sells for $500, and each paddle sells for $50. A 20X3 fire destroyed the hotel’s accounting records. However, a new system put into place before the 20X4 season provides the following aggregated data for the hotel’s canoe and paddle manufacturing and marketing activities:

Required:

1. High-Low Cost Estimation Method

a. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the canoe product line.

b. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the paddle product line.

2. Cost-Volume-Profit Analysis, Single-Product Setting
Use CVP analysis to calculate the break-even point in units for

a. The canoe product line only (i.e., single-product setting)

b. The paddle product line only (i.e., single-product setting)

3. Cost-Volume-Profit Analysis, Multiple-Product Setting

The hotel's accounting system data show an average sales mix of approximately 300 canoes and 1,200 paddles each season. Significantly more paddles are sold relative to canoes because some inexperienced canoe guests accidentally break one or more paddles, while other guests purchase additional paddles as presents for friends and relatives. In addition, for this multiple-product CVP analysis, assume the existence of an additional $30,000 of common fixed costs for a customer service hotline used for both canoe and paddle customers. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined (i.e., the multiple-product setting).

4. Cost Classification

a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period costs.

All manufacturing costs are product  costs. All marketing costs and customer hotline costs are period  costs

b. For the period costs, further classify them into either selling expenses or general and administrative expenses.

Marketing costs are selling oriented; therefore, the marketing period costs would be further classified as selling expenses . Customer hotline costs relate to the customer service section of the value chain and would be further classified as general and administrative expense .

5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting

If both the variable and fixed production costs (refer to your answer to Requirement 1) associated with the canoe product line increased by 5% (beyond the estimate from the high-low analysis), how many canoes and paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3.

6. Margin of Safety

Calculate the hotel’s margin of safety (both in units and in sales dollars) for Many Glacier Hotel, assuming the same facts as in Requirement 3, and assuming that it sells 700 canoes and 2,500 paddles next year.
total MOS units above total BE units

$ MOS in sales dollars

Topic: Construction

Let us assume that there is a large high school to be built on the East Coast of Florida near the beach. What type of block would be recommended i.e., compressive, fire rating, architecturally pleasing to the public eye? Remember to factor in cost, permanence, maintenance and safety.

It is known that at 300K the value of Kp for a certain reaction is 10^(12). For the reaction △H is 100kJ/mole.
a.Determine if this reaction is favorable at 800K and estimate Kp(800K). explain
b. The actual value of Kp (800) is 35. Explain any discrepancy from your estimate.

This is the predicted cash flow stream of an investment project related to the launch of a new automotive vehicle for a fictitious firm:

Be aware that this is a stylized Income Statement, designed for educational purposes, in order to force your critical thinking.  

Parameters considered in the DCF:

WACC = 9.5% (weighted average cost of capital)
Price = $22,000 /unit
Variable Costs = $18,700/unit
Fixed Costs = 150K
Investment = $3.5M (including the Cost of Equipment @$1M and R&D and Mkt expenses @$2.5M)

Supporting formulas:

a) free cash = unit contribution - Fixed Cost + Depreciation;

b) unit contribution = unit sales*(price - variable costs)

Note on the Investment and depreciation: the total initial investment was $3.5M, but $1M was paid in advance to purchase equipment and expand capacity. The remaining $2.5M was used in R&D and Marketing expenses paid at the end of Year #1. Manufacturing/sales effectively start in Year #2, so depreciation is initiated then for 5 consecutive years. The immediate investment cost of manufacturing is incurred in Time 0 and it is not affected by the discount rate (i.e., initial investment). Assume that production is interrupted in Year #10, with no residual value (the machinery cannot be sold due to high levels of specificity!).

Assignment Questions:

1) Based on the simplified information provided above, discuss whether you would support this investment. Why? or Why not? (Feel free to use Excel or a Financial Calculator)

The city of​ Belgrade, Serbia, is contemplating building a second airport to relieve congestion at the main airport and is considering two potential​ sites, X and Y. Hard Rock Hotels would like to purchase land to build a hotel at the new airport. The value of land has been rising in anticipation and is expected to skyrocket once the city decides between sites X and Y.​ Consequently, Hard Rock would like to purchase land now. Hard Rock will sell the land if the city chooses not to locate the airport nearby. Hard Rock has four​ choices: (1) buy land at​ X, (2) buy land at​ Y, (3) buy land at both X and​ Y, or​ (4) do nothing. Hard Rock has collected the following data​ (which are in millions of​ euros):                                                                                       Site X Site Y Current purchase price 26 22 Profits if airport and hotel built at this site 50 40 Sale price if airport not built at this site 12 7 Hard Rock determines there is a 50​% chance the airport will be built at X​ (hence, a 50​% chance it will be built at​ Y).

14. The Longview Power Plant near Morgantown was built asan Independent Power Producer (IPP). What is the basic business model of an IPP?

Teton Village, Wyoming, near Grand Teton Park and Yellowstone Park, contains shops, restaurants, and motels. The village has two peak seasons---winter, for skiing on the 10,000-foot slopes, and summer, for tourists visiting the parks. The number of visitors(in thousands) by quarter for five years can be found in Data Table Two below

1.Develop the typical seasonal pattern for Teton Village

2. Determine the seasonally adjusted number of visitors for winter 2011.

Data Table Two

Please post the answer with the work performed in excel and not just the answer, need to show work as I don't understand how to do this and would like the steps so that I can also learn it and it shows all work. You can add screenshots of the steps to find the answer in excel.