Compute the anticipated room rate using the Rule-of Thumb, or Building Cost rate.

(Note: More information may be GIVEN than is needed.)

a. In a common-size analysis, what percentage would you show for Income taxes for 2010?

b. In a vertical, common sized analysis, what percentage would you show for Operating expenses for 2009?

c.

What percentage of sales was the gross profit margin in 2010?

Shaver Manufacturing, Inc. offers dental care insurance to its employees. A recent study by the director of human resources shows that the annual cost per employee had a normal probability distribution, with an average expense of $ 1,280 and an average dispersion of $ 420 annually. Based on the information obtained, we want to identify: what percentage of employees generated: more than $ 1,500 per year of dental expenses; between $ 1,500 and $ 2.00 per year for dental expenses; calculate the percentage that did not generate expenses for dental care; what was the cost of the 10% of employees that generated higher expenses for dental care. Use all the tools learned in the course and carry out the analysis required for the study detailing an individual sentence of interpretation for each situation.

• Think about some of your friends and what you have discovered by visiting their homes. Do they buy different things than you do? If so, why? How might a company distinguish you from them in terms of its targeting?
• Is it always harder to find new customers than it is to retain old ones or does it depend on the business you're in?
• Does one-to-one marketing have to be expensive? How can small organizations interact with their customers in a cost-effective way?
• Are large companies better off using multi segment strategies and small companies better off using niche strategies? Why or why not?
• How have companies such as JCPenney and Sears tried to change their position (reposition their stores)?
• Do you think hotel companies have segmented the market too much and confused customers?

21. A public park is a public good because:

a. it is both excludable and rival good.

b. it is excludable but non rival

c. it is non-excludable but rival

d. it is non-excludable and non-rival.

22. If there are 5 firms in the market each with 10% of the market share, and another 10 firms that have the remaining market split between them equally, we can say that C4 or Concentration Ratio is 55%.

True or False

23. Regulated monopolies THAT operate on cost plus pricing, may make some positive economic profit.

True or False

24.

A monopoly faces a demand curve like:

if it finds that it's MR = MC occurs at Q = 3, what is the profit that the firm will make?

a. 60

b. 20

c. There is insufficient information

d. 6.66

Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Administration Janitorial Groceries Gifts Departmental costs before allocations $210,000 $60,000 $3,900,000 $350,000 Employee-hours 490 300 2,750 150 Space occupied—square feet 800 1,300 9,400 600 Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise fund. The general fund has two activities: education and parks/recreation. For convenience, assume that the general fund holds $123,000 cash and a new school building costing $1 million. The city utilizes straight-line depreciation. The building has a 20-year life and no salvage value. The enterprise fund has $62,000 cash and a new $600,000 civic auditorium with a 30-year life and no salvage value. The enterprise fund monitors just one activity, the rental of the civic auditorium for entertainment and other cultural affairs.

The following transactions for the city take place during 2017. Assume that the city’s fiscal year ends on December 31.

1. Decides to build a municipal park and transfers $70,000 into a capital projects fund and immediately expends $20,000 for a piece of land. The creation of this fund and this transfer were made by the highest level of government authority.

2. Borrows $110,000 cash on a long-term bond for use in creating the new municipal park.

3. Assesses property taxes on the first day of the year. The assessment, which is immediately enforceable, totals $600,000. Of this amount, $510,000 will be collected during 2017 and another $50,000 is expected in the first month of 2018. The remainder is expected about halfway through 2018.

4. Constructs a building in the park in (b) for $80,000 cash so that local citizens can play basketball and other sports. It is put into service on July 1 and should last 10 years with no salvage value.

5. Builds a sidewalk around the new park for $10,000 cash and puts it into service on July 1. It should last for 10 years, but the city plans to keep it up to a predetermined quality level so that it will last almost indefinitely.

6. Opens the park and charges an entrance fee of only a token amount so that it records the park, therefore, in the general fund. Collections during this first year total $8,000.

7. Buys a new parking deck for $200,000, paying $20,000 cash and signing a long-term note for the rest. The parking deck, which is to go into operation on July 1, is across the street from the civic auditorium and is considered part of that activity. It has a 20-year life and no salvage value.

8. Receives a $100,000 cash grant for the city school system that must be spent for school lunches for the poor. Appropriate spending of these funds is viewed as an eligibility requirement of this grant. During the current year, $37,000 of the amount received was properly spent.

9. Charges students in the school system a total fee of $6,000 for books and the like. Of this amount, 90 percent is collected during 2017 with the remainder expected to be collected in the first few weeks of 2018.

10. Buys school supplies for $22,000 cash and uses $17,000 of them. The general fund uses the purchases method.

11. Receives a painting by a local artist to be displayed in the local school. It qualifies as a work of art, and officials have chosen not to capitalize it. The painting has a value of $80,000. It is viewed as inexhaustible.

12. Transfers $20,000 cash from the general fund to the enterprise fund as a capital contribution.

13. Orders a school bus for $99,000.

14. Receives the school bus and pays an actual cost of $102,000. The bus is put into operation on October 1 and should last for five years with no salvage value.

15. Pays salaries of $240,000 to school teachers. In addition, owes and will pay $30,000 during the first two weeks of 2018. Vacations worth $23,000 have also been earned but will not be taken until July 2018.

16. Pays salaries of $42,000 to city auditorium workers. In addition, owes and will pay $3,000 in the first two weeks of 2018. Vacations worth $5,000 have also been earned but will not be taken until July 2018.

17. Charges customers $130,000 for the rental of the civic auditorium. Of this balance, collected $110,000 in cash and will collect the remainder in April 2018.

18. Pays $9,000 maintenance charges for the building and sidewalk in (d) and (e).

19. Pays $14,000 on the bond in (b) on the last day of 2017: $5,000 principal and $9,000 interest.

20. Accrues interest of $13,000 on the note in (g) as of the end of 2017, an amount that it will pay in June 2018.

21. Assumes that a museum that operates within the city is a component unit that will be discretely presented. The museum reports to city officials that it had $42,000 of direct expenses this past year and $50,000 in revenues from admission charges. The only assets that it had at year-end were cash of $24,000, building (net of depreciation) of $300,000, and a long-term liability of $210,000.

Prepare the 2017 government-wide financial statements for this city. Assume the use of the modified approach.

On January 1, 2018, Star Inc. began construction of a new warehouse for its own use. The warehouse was completed in 2019. Expenditures on the project in 2018 were as follows:

            January 1, 2018           $310,000

            March 31, 2018           $600,000

            September 1, 2018      $720,000

Star borrowed $600,000 on a construction loan at 6% interest rate on January 1, 2018. The loan was outstanding throughout the construction period. During 2018, the company had $300,000 in 4% bonds and $700,000 in 8% notes outstanding. Star’s capitalized interest in 2018 using the specific interest method was:

A. $60,000.

B. $63,200.

C. $68,000.

D. $104,000.

Sustainable construction has been high on the agenda of the industry for a number of years. You have been asked to give your view on:

i. Is modern construction sustainable? You must present more than one side to a discussion of this question, finally coming to a conclusion that you support with arguments and with reference to case studies. Your case studies may range in scale and purpose.

ii. How have modern materials improved the sustainability of construction in recent years? You must include in your discussion an explanation of how this has been achieved and how successful this achievement is within the context of global sustainable development.

An investor owns a lot that is suitable for either six or nine condominium units. The per unit construction costs of the building are $80,000 with six units and $90,000 with nine units. Construction costs are the same whether construction takes place this year or next. Current market price of existing comparable condos is $100,000 per unit. Their per year rental rate is $8,000 per unit (net of expenses). If market conditions are favorable next year, each condominium will sell for $120,000 If conditions are unfavorable, each will sell for only $90,000. The risk-free rate of interest is 12 percent per year. What is the value of the lot?