Customers arrive at a department store according to a Poisson process with an average of 12 per hour.

a. What is the probability that 3 customers arrive between 12:00pm and 12:15pm?

b. What is the probability that 3 customers arrive between 12:00pm and 12:15pm and 6 customers arrive between 12:30pm and 1:00pm?

c. What is the probability that 3 customers arrive between 12:00pm and 12:15pm or 6 customers arrive between 12:30pm and 1:00pm?

d. What is the probability that a total of 10 customers arrive between 12:00pm and 12:15pm and 12:45pm and 1:00pm? That is, the total count is 10 for both of these time intervals combined.

Quantitative Methods in BUSN

Solve this problem using Excel Solver

1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the hotel:

1. We want to figure out how many rooms of each type to build based on maximizing revenue if we fill up the hotel. We expect to charge $190 for a suite that is non-smoking and $140 for a budget room that is non-smoking. Smoking room customers for both suites and budget rooms will have to pay an additional $20 per night.
2. We can spend up to $7,500,000 on construction of our hotel. The cost to build a non-smoking budget room is $12,000. The cost to build a non-smoking suite is $15,000. It is $3,000 additional for a smoking room of either type for smoke detectors and sprinklers.
3. We require that the number of budget rooms be at least 1.5 times the number of suites, but no more than 3 the number of suites.
4. There needs to be at least 80 suites, but no more than 200.
5. Industry trends recommend that smoking rooms should be less than 50% of the non-smoking room and in addition, we require our builder gives us at least 4 smoking rooms.

Answer the following using your Solver answers:

1. How many of each room type should be built, and what would the revenue be for a night when our hotel was fully booked?
2. Without re-running Solver, what happens to our revenue if we get an additional $1,500,000 for building? Explain in words how you got this answer without re-running solver. Over what amount of construction costs can you use this procedure?
3. Over what range of room price can our budget non-smoking rooms vary over for us to get the same answer for the quantity of each type of room?

Case Study #27 100 Case Studies in Pathiphysiology (BRUYERE) Patient Case Question 3. Why might the healthcare provider have inquired about possible shortness of breath or chest pain with exercise?

Problem 18-27 (LO. 1, 3)

Tom and Gail form Owl Corporation with the following consideration:

The installment note has a face amount of $350,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $240,000). Regarding these transactions, provide the following information:

If an amount is zero, enter "0".

a. Tom's recognized gain or loss is $_____________.

b. Tom's basis in the Owl Corporation stock is $______________.

c. Owl Corporation's basis in the installment note is $________________.

d. Gail's recognized gain or loss is $_______________.

e. Gail's basis in the Owl Corporation stock is $_________________.

f. Owl Corporation's basis in the inventory is $______________ and equipment is $______________. Its basis in the patentable invention is $.

g. Would your answers to the preceding questions change if Tom received common stock and Gail received preferred stock?
______________(YES/NO), because there ____________ (IS A/IS NOT) requirement that the transferors receive the same type of stock.

h. Would your answers change if Gail was a partnership instead of an individual?
_____________(YES/NO), because there ____________(IS A /IS NOT) requirement that the transferors be individuals.

i. Gail is considering an alternative to the plan as presented above. She is considering selling the inventory to an unrelated third party for $50,000 in the current year instead of contributing it to Owl. After the sale, she will transfer the $50,000 sales proceeds along with the equipment and patentable invention to Owl for 60 shares of Owl stock. Whether or not she pursues the alternative, she plans to sell her Owl stock in six years for an anticipated sales price of $700,000. In present value terms and assuming she later sells her Owl stock, determine the tax cost of (1) contributing the property as originally planned, or (2) pursuing the alternative she has identified.

Assume a discount rate of 6%. The present value factors at 6% are 1.000 for year 1 and 0.7050 for year 5. Further, assume Gail's marginal income tax rate is 28% and her capital gains rate is 15%.

If required, round your answers to the nearest dollar.

Tax cost associated with sale of Owl stock for $700,000 is $_______________. Tax cost associated with the current sale of inventory for $50,000 and subsequent sale of Owl stock for $700,000 is $________________. The present value of the tax cost of the alternative is
$_______________.

Mrs. Main. is a 27-y/o gravida 3, para 2, who was admitted at term at 6:30 p.m. She stated that she had been having contractions 7 to 10 minutes apart since 4 p.m. They last 30 seconds. She also stated that she had been having "a lot of false labor" and hoped that this was "the real thing". Her membranes are intact. Mrs. Main's temperature, pulse and respirations are normal, and her blood pressure is 124/80. The fetal heart tones are 134 and regular. Mrs. Main vaginal assessment is 4/ 80%/ +1 She reported her findings to the doctor and he ordered Fentanyl 50 mcg every hour as needed for pain.

3. After her membranes ruptured, her contractions began coming every 4 minutes and lasted 45 to 55 seconds. They were moderately strong. Why is it important to relax during her contractions? How can you help her with this?

Mrs. Main. is a 27-y/o gravida 3, para 2, who was admitted at term at 6:30 p.m. She stated that she had been having contractions 7 to 10 minutes apart since 4 p.m. They last 30 seconds. She also stated that she had been having "a lot of false labor" and hoped that this was "the real thing". Her membranes are intact. Mrs. Main's temperature, pulse and respirations are normal, and her blood pressure is 124/80. The fetal heart tones are 134 and regular. Mrs. Main vaginal assessment is 4/ 80%/ +1 She reported her findings to the doctor and he ordered Fentanyl 50 mcg every hour as needed for pain

2. As Mrs. Main was getting into bed, her membranes ruptured. What is the first thing that should be done when this occurs? Why?

Mrs. Main. is a 27-y/o gravida 3, para 2, who was admitted at term at 6:30 p.m. She stated that she had been having contractions 7 to 10 minutes apart since 4 p.m. They last 30 seconds. She also stated that she had been having "a lot of false labor" and hoped that this was "the real thing". Her membranes are intact. Mrs. Main's temperature, pulse and respirations are normal, and her blood pressure is 124/80. The fetal heart tones are 134 and regular. Mrs. Main vaginal assessment is 4/ 80%/ +1 She reported her findings to the doctor and he ordered Fentanyl 50 mcg every hour as needed for pain.

4. When would it be appropriate to give her the Fentanyl the doctor ordered? What safety measures should be taken at the time the medication is given? Also, at what point is it unsafe to give the medication to her and why?

QUESTION 1
Rockwater, a wholly owned subsidiary of Brown & Bread, a global engineering and construction company, is a worldwide leader in underwater engineering and construction. Norman Chambers, hired as CEO in late 2019, knew that the industry’s competitive world had changed dramatically. “In the 1990s, we were a bunch of guys in wet suits diving off barges into the North Sea with burning torches,” Chambers said. But competition in the subsea contracting business had become keener in the 2000s, and many smaller companies left the industry. In addition, the focus of competition had shifted. Several leading oil companies wanted to develop long-term partnerships with their suppliers rather than choose suppliers based on low-price competition.
With his senior management team, Chambers developed a vision: “As our customers’ preferred provider, we shall be the industry leader in providing the highest standards of safety and quality to our clients.” He also developed a strategy to implement the vision. The five elements of that strategy were: services that surpass customers’ expectations and needs; high levels of customer satisfaction; continuous improvement of safety, equipment reliability, responsiveness, and cost effectiveness; high-quality employees; and realization of shareholder expectations. Those elements were in turn developed into strategic objectives. If, however, the strategic objectives were to create value for the company, they had to be translated into tangible goals and actions.
Rockwater’s senior management team transformed its vision and strategy into the balanced scorecard’s four sets of performance measures. One perspective included three measures of importance to the shareholder. Return-on-capital-employed and cash flow reflected preferences for short-term results, while forecast reliability signaled the corporate parent’s desire to reduce the historical uncertainty caused by unexpected variations in performance. Rockwater management added two financial measures. Project profitability provided focus on the project as the basic unit for planning and control, and sales backlog helped reduce uncertainty of performance. Rockwater wanted to recognize the distinction between its two types of customers: Tier I customers, oil companies that wanted a high value-added relationship, and Tier II customers, those that chose suppliers solely on the basis of price. A price index, incorporating the best available intelligence on competitive position, was included to ensure that Rockwater could still retain Tier II customers’ business when required by competitive conditions. The company’s strategy, however, was to
3 | P a g e
emphasize value-based business. An independent organization conducted an annual survey to rank customers’ perceptions of Rockwater’s services compared to those of its competitors. In addition, Tier I customers were asked to supply monthly satisfaction and performance ratings. Rockwater executives felt that implementing these ratings gave them a direct tie to their customers and a level of market feedback unsurpassed in most industries. Finally, market share by key accounts provided objective evidence that improvements in customer satisfaction were being translated into tangible benefits.
From another perspective, Rockwater executives defined the life cycle of a project from launch (when a customer need was recognized) to completion (when the customer need had been satisfied). Measures were formulated for each of the five business-process phases in this project cycle: Identify: number of hours spent with prospects discussing new work; Win: tender success rate; Prepare and Deliver: project performance effectiveness index, safety/loss control, rework; and Closeout: length of project closeout cycle. Formerly, the company stressed performance for each functional department. The new focus emphasized measures that integrated key business processes. The development of a comprehensive and timely index of project performance effectiveness was viewed as a key core competency for the company. Rockwater felt that safety was also a major competitive factor. Internal studies had revealed that the indirect costs from an accident could be 5 to 50 times the direct costs. The scorecard included a safety index, derived from a comprehensive safety measurement system that could identify and classify all undesired events with the potential for harm to people, property, or process. The Rockwater team deliberated about the choice of metric for the identification stage. It recognized that hours spent with key prospects discussing new work was an input or process measure rather than an output measure. The management team wanted a metric that would clearly communicate to all members of the organization the importance of building relationships with and satisfying customers. The team believed that spending quality time with key customers was a prerequisite for influencing results. This input measure was deliberately chosen to educate employees about the importance of working closely to identify and satisfy customer needs.
At Rockwater, improvements came from product and service innovation that would create new sources of revenue and market expansion, as well as from continuous improvement in internal work processes. The first objective was measured by percent revenue from new services and the
4 | P a g e
second objective by a continuous improvement index that represented the rate of improvement of several key operational measures, such as safety and rework. But in order to drive both product/service innovation and operational improvements, a supportive climate of empowered, motivated employees was believed necessary. A staff attitude survey and a metric for the number of employee suggestions measured whether or not such a climate was being created. Finally, revenue per employee measured the outcomes of employee commitment and training programs.
The balanced scorecard has helped Rockwater’s management emphasize a process view of operations, motivate its employees, and incorporate client feedback into its operations. It developed a consensus on the necessity of creating partnerships with key customers, the importance of order-of-magnitude reductions in safety related incidents, and the need for improved management at every phase of multiyear projects. Chambers sees the scorecard as an invaluable tool to help his company ultimately achieve its mission: to be number one in the industry.
Required:
a) According to Kaplan and Norton, what characteristics/features make the balanced scorecard so special for its worldwide adoption?
b) Outline the five-pronged strategy crafted by Rockwater in developing the scorecard.

c) Using the balanced scorecard (tabular format), translate Rockwater’s strategy into tangible goals and actions.
d) Outline the importance of the balance score card to Rockwater’s.
e) What factors aided Rockwater in its smooth switch to the balanced Score card?
f) How beneficial can the scorecard be to UPSA Graduate School?

Why do you think it is more important to differentiate yourself as a company when dealing with business to business transactions and customers than business to consumer customers?

Analyzing the effects of Business Transactions:
On March 1, Suresh starts software development center for developing customer-specific computer software. The
transactions for the said month are as follows:
1) Investment by owner : On March 1, Suresh invests Rs 50,000/- in cash in the company.
2) Receipt of loan : On March 2, Suresh took a loan of Rs 20,000/- from Manoj for the company.
3) Purchase of assets on credit : On March 3, Suresh purchased 2 computers with accessories, costing Rs
22,000/- each.
4) Purchases on cash : On March 4, purchased supplies of floppy disks Rs 1000/-.
5) Purchase returns : On March 6, assets’ accessories purchased on March 3, worth Rs 1000/- being faulty,
was returned to suppliers.
6) Purchases on credit: On March 10, purchased stationery for Rs 6,000/- on credit.
7) Receipt of revenue: On March 19, the company completes its maiden sale of software to a retail store
and receives a sum of Rs 15,000/-.
8) Revenues receivables: On March 20, billed customers for services rendered, Rs 19,000/-.
9) Payment of a liability: With more cash now than in the beginning, on March 21, the company paid Rs
2000/- to its creditors for stationery purchased.
10) Payment of expenses: On March 29, the company pays salaries to its employees, amounting to Rs
4000/- and office rent of Rs 1,200/-.
11) Revenues receivables: On March 30, the company completes a software package, the customer agrees
to pay the price of Rs 8,000/- a week later.
12) Payments: On March 30, Repaid a part of the Manoj's loan, Rs 5,000/- along with interest of Rs. 500/-.
13) Withdrawal by owner: On March 31, Suresh withdraws Rs 3,500/- for his personal use.
14) Depreciation is provided @ 5% for the month of March.
15) Tax @ 20% to be provided.
Required :
Prepare, for the month of March:
1. Transaction statement (in the format taught in class A+E = L+I), (15 m)
2. Income statement (5 m)
3. Balance Sheet (5 m)