Exercise 9-13 Revenue and Spending Variances [LO9-3]

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.10 per car washed.

The actual operating results for August are as follows:

Required:

Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,400 $ 0.20 Depreciation $ 8,000 Rent $ 2,000 Administrative expenses $ 1,500 $ 0.05 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August appear below.

Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $ 53,130 Expenses: Cleaning supplies 4,550 Electricity 1,675 Maintenance 1,050 Wages and salaries 6,380 Depreciation 8,000 Rent 2,200 Administrative expenses 1,805 Total expense 25,660 Net operating income $ 27,470 Required: Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

examining Porter's Five Forces as a tool for looking at the pressures on profits. Specifically, you will be looking at defining Porter's Five Forces and applying this tool to the market structures and pressures on profits of a chosen group of firms •Chose one of the following groups and use Porter's Five Forces to analyze the pressures on profits for your chosen group's firms. ◦Group 1: the accommodations industry (e.g., Hilton, Marriott Bonvoy, InterContintental Hotel Group). ◦Group 2: the wireless telecommunications industry (e.g., Verizon, AT&T, T-Mobile). •If you want to dig deeper into how one of the firms views the challenges it faces, you might want to look at the firm's investor page.

An investor is reviewing two proposals, assuming similar risk profiles and a 14% required return, which one should the investor buy? Why?

Lee Vista:

Purchase Price: $464,000

Cash flows from operations:

Year 1 $48,000

Year 2 $49,440

Year 3 $50,923

Year 4 $52,451

Year 5 $54,025

Cash flow from sale on year 5 $560,000

Colony Park:

Purchase Price: $500,000

Cash flows from operations:

Year 1 $56,000

Year 2 $57,400

Year 3 $58,835

Year 4 $60,306

Year 5 $61,814

Cash flow from sale on year 5 $597,000

Where are the deer? Random samples of square-kilometer plots were taken in different ecological locations of a national park. The deer counts per square kilometer were recorded and are shown in the following table.

A)  Find SS_TOT, SS_BET, and SS_W and check that SS_TOT = SS_BET + SS_W. (Use 3 decimal places.)

B) Find d.f._BET, d.f._W, MS_BET, and MS_W. (Use 4 decimal places for MS_BET, and MS_W.)

C) Find the value of the sample F statistic. (Use 2 decimal places.)

Margot is walking in a straight line from a point 40 feet due east of a statue in a park toward a point 34 feet due north of the statue. She walks at a constant speed of 4 feet per second.

(a) Write parametric equations for Margot's position t seconds after she starts walking. (Round your coefficients to four decimal places as needed.)

(b) Write an expression for the distance from Margot's position to the statue at time t. (Round your coefficients to four decimal places as needed.)

(c) Find the times when Margot is 36 feet from the statue. (Round your answers to two decimal places)

The English Premier League has 20 teams, throughout the season, each team plays each of the other teams once at home and once away. (e.g. Everton plays Liverpool at Anfield, which is Liverpool’s home field, and Everton plays Liverpool at Goodison Park, which is Everton’s home field.) Teams are awarded 3 points for a win, 1 point for a draw, and 0 points for a loss

(a) How many combinations of wins, losses, and draws are possible for a team throughout the season, regardless of the order?

(b) How many ways can a team win 6 out of 10 games? Here, order matters, and you are only considering those 10 games.