In order to compare the satisfaction of customers of 2 competitor companies of , 174 customers of company A and 355 customers of company B were chosen randomly. Customers were required to rate the companies from level 1 (least satisfaction) to 5 (maximum satisfaction). The results are included below. Check whether the difference in the mean level of customers' satisfaction of the two companies is statistical important at 1%. The results are included below:

Company A   Company B
Sample Size   174   355
Sample mean   3.51   3.24
Sample Standard Deviation (S)   0.51   0.52

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

In 2021, the Westgate Construction company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows.

Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.

Westgate recognizes revenue over time according to percentage of completion.

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

2a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred)

2b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts for construction costs incurred)

2c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts for construction costs incurred)

3.  Complete the information required below to prepare a partial balance sheet for 2021and 2022 showing any items related to the contract. Indicate whether any of the amounts shown are contract assets or contract liabilities

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

5.Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

Technology advancements have become a driving force for national and economic growth to transact across the global. Service providers have become so alarmed with the rate at which customers are able to download a web page. In one of the optic fiber survey, it was noted that the most customers tend to experience a mean download time of a resource web page is normally distributed to 8.5 seconds. After analysis by the census office, the data obtained had a standard deviation of 4.5 seconds.

1. What probability of page downloads take less than 5 seconds?
2. What is the probability that the download time will be between 5 and 11 seconds?
3. How many seconds elapse before 25% of downloads are complete?
4. If 10 downloads are randomly selected, how many downloads are expected to take more than 12 seconds
5. What is the probability that the download time will be between 10 and 12 seconds

Create an excel workbook for the following questions. Answer these questions under your Solver work for each respective problem.

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?

Fill out the summary of T-Accounts for

1. Revenue and Expenses (Temporary Income Statement Accounts)

       -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense.

2. Assets (Permanent Balance Sheet Accounts)

      -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent.

3. Liabilities and Equities (Permanent Balance Sheet Accounts)

      -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings

4. What are the total Assets?

5. What are the total Liabilities & Shareholder's Equity?

    Note: Total assets and Liabilities + Shareholders equity should balance.

1. Jan. 1: Log issued $40,000 of common stock.
2. Jan. 1: Log paid $18,000 cash to purchase an equipment. The equipment has an estimated useful life of 5 years and an estimated salvage value of $3,000.
3. Jan. 1: Log paid $7,000 cash for two years of insurance coverage starting on Jan. 1, 2020.
4. March 1:Log rented a building and paid $2,400 for one year’s rent (starting 3/1).
5. April 1: Log purchased $5,700 of inventory on account.
6. June 1:Log sold $23,000 of software on account. The cost is $3,500.
7. Sept. 1: Log collected $7,000 cash from its customers for the previous sales on account.
8. Oct 31: Log paid $5,000 cash for employee wages earned during the first ten months (Jan 1 to October 31, $500 per month).
9. Nov 1: Log paid $3,300 cash to suppliers for inventory purchases made on account.
10. Dec 1: Log started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Log received $3,600 of cash from customers for one year of subscription fees (for online services from Dec 1, 2020 to Nov 30, 2021).

Additional Info:

-Xenon uses Straight Line Depreciation

-Two months of employee wages was accrued on Dec. 31, 2020. Xenon plans to pay employees Jan. 1 2021

1. Jan. 1: Xenon issued $40,000 of common stock.
2. Jan. 1: Xenon paid $18,000 cash to purchase an equipment. The equipment has an estimated useful life of 5 years and an estimated salvage value of $3,000.
3. Jan. 1: Xenon paid $7,000 cash for two years of insurance coverage starting on Jan. 1, 2020.
4. March 1:Xenon rented a building and paid $2,400 for one year’s rent (starting 3/1).
5. April 1: Xenon purchased $5,700 of inventory on account.
6. June 1: Xenon sold $23,000 of software on account. The cost is $3,500.
7. Sept. 1: Xenon collected $7,000 cash from its customers for the previous sales on account.
8. Oct 31: Xenon paid $5,000 cash for employee wages earned during the first ten months (Jan 1 to October 31, $500 per month).
9. Nov 1: Xenon paid $3,300 cash to suppliers for inventory purchases made on account.
10. Dec 1: Xenon started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Xenon received $3,600 of cash from customers for one year of subscription fees (for online services from Dec 1, 2020 to Nov 30, 2021).

Additional Info:

-Xenon uses Straight Line Depreciation

-Two months of employee wages was accrued on Dec. 31, 2020. Xenon plans to pay employees Jan. 1 2021

Questions

Fill out the summary of T-Accounts for

1. Revenue and Expenses (Temporary Income Statement Accounts)

       -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense.

2. Assets (Permanent Balance Sheet Accounts)

      -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent.

3. Liabilities and Equities (Permanent Balance Sheet Accounts)

      -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings

4. What are the total Assets?

5. What are the total Liabilities & Shareholder's Equity?

    Note: Total assets and Liabilities + Shareholders equity should balance.

Please compose three full paragraphs (one page single spaced) with any graphical or technical analysis as appropriate for each question d) Allocating an unexpected increase in local government revenue for street improvements.

What does yield/revenue management entail? What types of businesses, besides hotels and airlines, would benefit from revenue management? As a consumer, how do you view the practice?

Describe the output of aggregate planning. When is aggregate planning most useful?

Explain three alternatives for adjusting capacity and two alternatives for managing demand. Give relevant industry examples as to when these are best (or least) utilized to make your point.

Badger Air is an all-cargo airline that operates on four continents. Its headquarters are in the United States. It has two divisions, Cargo and Maintenance. Cargo Division flies cargo to and from international locations, but does not operate services between two points outside the United States. That is, the planes fly to and from the United States only. Badger Air also has a maintenance facility located in Hong Kong and schedules its planes in such a way that most maintenance can be done there. In addition to Badger aircraft, Maintenance Division also provides services to Asian passenger and cargo air companies.

All of the Cargo Division income is deemed to be earned in the United States. Income from the Maintenance Division is deemed to be earned in Hong Kong. Badger’s income deemed attributable to the United States is taxed at a 40 percent rate. Its income attributable to Hong Kong is taxed at a 25 percent rate. Last year, Maintenance Division had operating revenues of $46 million, excluding services performed for Cargo Division aircraft. Cargo Division revenues last year were $135 million.

Operating costs of Maintenance Division were $36 million last year and operating costs for the Cargo Division, before considering maintenance costs, totaled $54 million. No similar maintenance facilities in Hong Kong are available to Badger.

Recently, a maintenance facility opened in the Philippines. That facility proposed to Cargo Division that it could conduct the maintenance in the Philippines. The facility proposed a price of $42 million for the services that Maintenance Division in Hong Kong provided to Cargo Division. Badger management estimated that had the services been provided in United States, the costs for the year would have totaled $74 million. In its latest tax filing, Badger assigned the $74 million as the appropriate transfer price Cargo paid for the services from Maintenance. The U.S. tax authorities denied that expense and instead applied $42 million dollars as the appropriate transfer price.

Required:

1. Calculate the revenues, costs, income taxes and total taxes for both Cargo Division and the Maintenance Division using the Philippines basis. (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.)

2. Calculate the revenues, costs, income taxes and total taxes for both Cargo Division and the Maintenance Division using the U.S. basis. (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.)

3. What is the difference in tax costs to Badger between the alternate transfer prices for maintenance services, that is, the difference between a transfer price of $42 million and $74 million? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)