A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $100  each month for the three-month season. The team pays the players and manager a total of $1000 each month. The team charges $10 for each ticket, and the average customer spends $8 at the concession stand. Attendance averages 30 people at each home game.

1st attempt

Part 1   (4 points)

The team earns an average of   $   in revenue for each game and   $   of revenue each season.

With total costs of   $   each season, the team finishes the season with   $   of profit.

Part 2   (1 point)

In order to break even, the team needs to sell      tickets for each game. Round to the nearest whole number.

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500  each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 100 people at each home game.

Part 1. The team earns an average of $________________ in revenue for each game and $______________ of revenue each season.

With total costs of $_____________ each season, the team finishes the season with $________________ of profit.

Part 2   In order to break even, the team needs to sell   tickets for each game. Round to the nearest whole number.

PROBLEM

In the Hotel management domain, we have the following concepts:
Hotel Hotel chain Hotel room      
Reservation Hilton Hilton San Diego Bayfront
Meeting room Ballroom Guest Room
Catering Service Internet Service       TV Service
Guest Parking Service       Item on bill      

You are asked to design a model, using a UML class diagram to relate the abovementioned concepts:

Correctly use UML notations for relations such as generalization, association, aggregation, composition. Be careful to distinguish objects from classes.

You may introduce additional concepts into the picture to make your model more appropriate.
For each Class in your diagram, you should define at least one attribute and one operation.

Use multiplicity whenever appropriate.

Note that if you are not sure about a concept, you should do research on the problem domain.

Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster.

Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years.

The marketing team at Six Flags expects the coaster to increase attendance at the park by 5%. This translates to 110,199.00 more visitors at an average ticket price of $39.00. Expenses for these visitors are about 11.00% of sales.

There is no impact on working capital. The average visitor spends $20.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 38.00%. The tax rate facing the firm is 38.00%, while the cost of capital is 9.00%.

What is the project cash flow for year 0? (answer in terms of MILLIONS)

What is the project cash flow for year 1? (express answer in millions)

What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? (Six Flags expects the first year project cash flow to grow at 5% per year, going forward)
(Express answer in millions)

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows: Division Time Usage(thousands of minutes) Number of Reservations (thousands) Luxury 220 104 Resort 110 143 Standard 440 273 Budget 330 780 During this period, the cost of the call center amounted to $870,000 for personnel and $660,000 for equipment and other costs.

Required: a. Determine the allocation to each of the divisions using the following:

1. A single rate based on time used. (Do not round intermediate calculations.)

2. Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost). (Do not round intermediate calculations.)

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows:

During this period, the cost of the call center amounted to $890,000 for personnel and $630,000 for equipment and other costs.

Required:

a. Determine the allocation to each of the divisions using the following:

1. A single rate based on time used. (Do not round intermediate calculations.)

2. Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost). (

1. Ore-Ida is the one of the largest potato processors in the world. Explain why Ore-Ida buys it potatoes from farmers instead of growing potatoes itself?
2. Why would Ikea, a wood furniture and home furnishings manufacturer, buy forests and woodlands?

Currently, your firm plans on depreciating an upcoming project’s PPE from an initial value of $800k to a final book value of $100k over a 10 year period. You’ve been asked to value a possible change in the depreciation scheme which will accelerate this process by depreciating the machine over a 6 year period (let’s assume this is legal to do). If you accelerate depreciation, you will still be depreciating to a final book value of $100k. If the project’s discount rate is 12% and the firm’s tax rate is 35%, by how much will the project’s NPV change if you switch to the accelerated depreciation schedule?

Donald has recently lost his job as the President of a large North American country and has returned to the family hotel business. Their most prestigious hotel Tramp Tavern has been closed for two years whilst it has undergone refurbishment and the hotel is about to be relaunched. The hotel runs conventionally and has a number of cost centres such as Reception, Concierge, Repairs and Maintenance which are relatively fixed. The hotel also has variable costs relating to cleaning and servicing rooms. You have been provided with the following data regarding the re-furbished Tramp Tavern: Available Rooms 400 Average Room Tariff (per night) $230 Fixed Financing Costs $10 million Fixed Operating Costs $15 million Variable Operating Costs (per night when occupied) $50 Required a) What is the breakeven point (in total room rentals for the year) for the Tramp Tavern? Show the percentage of occupancy that the hotel must achieve in order to break even (show all calculations) (2.5 marks)
b) Donald expects the property to achieve 70% occupancy over the year. What will be his Net Profit (Loss) for the year if they achieve that level of occupancy? (2.5 marks)
c) Hotel rooms (like airline seat tickets) are services that are referred to as ‘perishable’ in that they expire if they are not used on a certain date (they cannot be stored). Donald has determined that he can increase the hotel’s occupancy from 70% to 95% by subscribing to a last-minute deals provider. However, should he do so the average room tariff Tramp Tavern will receive will fall from $230 per night to $190 per night. Provide the profit calculation to demonstrate whether Donald should or should not go ahead with the offer from the lastminute deals provider to sign. (2.5 marks)
d) Briefly discuss any other business issues that Donald should consider before making up his mind whether to proceed with the last-minute deals agreement.

Donald has recently lost his job as the President of a large North American country and has returned to the family hotel business. Their most prestigious hotel Tramp Tavern has been closed for two years whilst it has undergone refurbishment and the hotel is about to be relaunched. The hotel runs conventionally and has a number of cost centres such as Reception, Concierge, Repairs and Maintenance which are relatively fixed. The hotel also has variable costs relating to cleaning and servicing rooms. You have been provided with the following data regarding the re-furbished Tramp Tavern: Available Rooms 400 Average Room Tariff (per night) $230 Fixed Financing Costs $10 million Fixed Operating Costs $15 million Variable Operating Costs (per night when occupied) $50 Required a) What is the breakeven point (in total room rentals for the year) for the Tramp Tavern? Show the percentage of occupancy that the hotel must achieve in order to break even (show all calculations) (2.5 marks) b) Donald expects the property to achieve 70% occupancy over the year. What will be his Net Profit (Loss) for the year if they achieve that level of occupancy? (2.5 marks) c) Hotel rooms (like airline seat tickets) are services that are referred to as ‘perishable’ in that they expire if they are not used on a certain date (they cannot be stored). Donald has determined that he can increase the hotel’s occupancy from 70% to 95% by subscribing to a last-minute deals provider. However, should he do so the average room tariff Tramp Tavern will receive will fall from $230 per night to $190 per night. Provide the profit calculation to demonstrate whether Donald should or should not go ahead with the offer from the lastminute deals provider to sign. (2.5 marks) d) Briefly discuss any other business issues that Donald should consider before making up his mind whether to proceed with the last-minute deals agreement. (