Consider the market for rental apartments. The price elasticity of demand for rental apartments is estimated to be 0.15

a. What impact would higher home prices have on the market price and quantity of rental apartments?

b. What would happen to the revenue going to landlords? Identify the revenue going to landlords before and after the increase in home prices using supply-and-demand diagrams..

Please explain why the correct answer is correct

Fadwa is the general manager at the 125-room select-service. Fadwa has just taken a call from Lawrence's hotel. Because of an internal oversight, Lawrence's hotel is overbooked by 70 group rooms next Saturday. Lawrence would like to purchase that number of rooms from Fadwa at their previously agreed upon walk rate of $75 per night. Fadwa's normal ADR is $129.00 and her cost of cleaning a room is $17. Currently, Fadwa had 55 occupied rooms (arrivals and stayovers) on the books for that day. She forecast that she could sell, at her normal ADR, another 30 rooms by Saturday. Fadwa typically generates $8 in ancillary revenue from each of her occupied rooms. Before replying to Lawrence's request, she summarized her forecasted rooms sale-related information in a chart so she could better understand the impact of accepting or rejecting Lawrence's walked guests. FILL IN THE CHART AND ANSWER THESE QUESTIONS BELOW

a. What would be Fadwa’s ADR if she accepted all of Lawrence’s walked rooms?

Answer:

b. What would be Fadwa’s RevPOR with the walked rooms?

Answer:

c. What would be Fadwa’s RevPOR without the walked rooms?

Answer:

d. What would be the net total revenue (RevPOR – Rooms dept. cost POR) difference in her hotel's revenue if Fadwa agree to take the rooms?

Answer:

e. What would be the percentage difference in her hotel’s net total revenues if Fadwa agree to take the rooms?

Answer:

f. If you were Fadwa, would you accept the walked rooms from Lawrence’s hotel? Why or why not.

Answer:

Mental Health provides counseling and stress management programs for overworked students.

Fixed costs are: rent for the building (that includes utilities and maintenance); and the Director's salary. These total $20,000 per month.

Each counseling session uses 60 minutes of therapist time and $3 in materials. Each stress management session uses 20 minutes of trainer time and $3 in materials.

Mental Health hires therapists and trainers on a freelance contract bases and does not provide them any benefits. The hourly wage rate for therapists is $40 per hour and stress management trainers is $30 per hour. They are paid for actual services rendered.

At the end of December 2019, the Director projected they would sell 1000 counseling sessions at $120 each and 10,000 stress management sessions at $25 each in 2020.

A) Complete The Here For You Clinic Annual Static (Projected) Budget for 2020 below

Revenue

Total Cost

Profit

Revenue Breakdown

Counseling Services

Stress Management Services

Cost Breakdown

         Fixed cost

Counselor services

Stress Management Trainer Services

          Supplies

Jump into your time machine and fast forward to December 31. As 2020 comes to a close, the director sees that they actually provided 1000 counseling services. 100 of those services were provided during their “Holidays in July” promotion offering the sessions for $75 each. The remainder were sold at full price.

Actually provided 12,500 stress reduction sessions. 4,000 of these were sold during the July promotion at $15 each. The remainder were sold at $25.

Therapist and stress trainer contracted hourly rates remained the same throughout the year. The spending on fixed costs were exactly as projected.

B)   What is Mental Health's flexible budget amount for: revenue, fixed cost, supplies, counselors, and stress trainers?

C) What is Mental Health's actual revenue, total cost, variable cost and profit?

D) Examine the Revenue Variance. What is the total Revenue Variance? What is the Revenue Price Variance? What is the Revenue Volume Variance?

E) Examine the Cost variance. What is the total Cost Variance? Of the Variable Cost variance, what is the Volume variance and what is the Management variance?

F) Interpret Mental Health's budget variance results for 2020. What contributed most to the change in profit? What recommendations would you make for 2021?

Determine the appropriate account to for the journal entry for the month of May by placing the appropriate identification number(s) in the debit o credit column provided for each item. The company uses a perpetual inventory system.

Group of answer choices

Sold merchandise with a cost of $250 for cash of $450, terms net 30 The account to be credited for $450 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Sold merchandise with a cost of $250 for cash of $450, terms net 30. The account to be credited for $250 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Purchased merchandise from Supplier, Inc. on account for $2,000, terms 2/10, n/30. The account to be debited is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Returned $500 of merchandise that had been purchased from Supplier, Inc. The account to be credited is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Sold merchandise costing $550 to Bike World for $900 on account, terms 2/10, n/30. Bike World will pay $40 freight costs per the shipping terms. The account to be debited for $550 is :

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Accepted a return of merchandise from Bike World. Granted a credit on account of $100. The account to be debited for $100 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Purchased merchandise from AB Supply on account for $1,600; terms 1/10, n/30 The account to be credited for $1,600 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Paid freight of $90 on the shipment from Supplier, Inc. per the shipping terms of the purchase. The account to be credited for $90 is:

As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided.

1. A count reveals that $45 of brochures and posters (supplies) were used.

2. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. Assume that 2 months’ worth of depreciation is required.

3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1.

4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) Round to nearest dollar.

5. One month’s worth of insurance has expired.

6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center.

7. A count reveals that $1,025 of baking supplies were used.

8. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15.

9. Because the cookie-making class occurred unexpectedly on December 31 and is for such a large group of children, Natalie’s assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour.

10. An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December. The $60 deposit received on December 19 for another class also remains unearned.

November Trial Balance:

COOKIE CREATIONS INC.

                                                                     Trial Balance

                                                               November 30, 2017                         

                                                                                                                                         Debit     Credit  

            Cash................................................................................................... $   340

            Accounts Receivable....................................................................................................... 300

            Supplies.............................................................................................. 220

            Prepaid Insurance........................................................................................................ 1,200

            Equipment........................................................................................... 1,200

            Website............................................................................................... 600

            Accounts Payable...........................................................................................................                          $   650

            Unearned Service Revenue..........................................................................................................                          60

            Notes Payable...........................................................................................................                          2,000

            Common Stock    ........................................................................................................... 800

            Service Revenue..........................................................................................................                          400

            Utilities Expense..........................................................................................................                       50            

                                                                                                                                       $3,910 $3,910

Instructions Using the information gathered from above and from the November trial balance, do the following:

(c) Prepare a trial balance at December 31, 2017.

Solution for A:

I. Stockholders' Equity

A. Determine how Target Corporation got its initial financial start in terms of debt (liabilities) or equity (capital). Support your response.

B. Analyze the equity section of Target corporation's balance sheet as compared to its industry average. Rate Target corporation's performance against its competitors.

C. Review Target corporation's dividend policy and its history. Based on the information, discuss the trends over the past year.

II. Income Measurement/Revenue Recognition

A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together on a unified project to outline the accounting principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. Research IAS-18, Revenue, and discuss how it would apply to Target corporation.

B. Review Target corporation's revenue over the past two years. Analyze the change in revenue (increase/decrease) and give the reasons for this change.

C. Reflecting upon Target corporation's balance sheet, identify the unearned revenue accounts listed. How does Target cororation handle the proper accounting treatment with regard to recognizing revenue from unearned revenue accounts?

Income statements

A monopolist with a constant marginal cost of production of 10 maximizes its profit by choosing to produce where the price elasticity of demand is –3. (Recall that MR = p(1 + 1/ε) where MR is marginal revenue, p is price and ε is the point price elasticity of demand.)

A. If price is decreased (from its profit maximizing level) by a small amount, revenue of the monopolist will increase.

B. If the monopolist’s fixed cost increases, its profit maximizing price also increases.

C. The price set by the monopolist is equal to 30.

D.Since marginal cost is constant, both profit-maximizing and revenue-maximizing quantities are equal.

Thank you for your help! (Please show process)