Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46

Chapter 8 hand-in Homework
Pat I
A random sample of 15 customers’ waiting time in a bank was selected, giving the following results in minutes:

0.38
2.34
3.02
3.2
3.54
3.79
4.21
4.5
4.77
5.1
5.13
5.55
6.1
6.19
6.46

1) Based on the sample above, what is the point estimate of the true percentage (same as True Population) of customers’ waiting time in a bank?  
2) To estimate the true percentage of customers’ waiting time in a bank, how large a sample must be taken to insure the estimate is off by no more than + 2% with 99% certainty?  

3) What would happen to the sample size above if the error was increased to 4%?  

4) What would happen to the sample size in question 2 above if the error was decreased to 1%?  
Part II
A bottle of water distributor wants to estimate the amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company. The water bottling company’s specifications state that the standard deviation of the amount of water is equal to 0.02 gallon. A random sample of 50 bottle is selected, and the sample mean amount of water per 1-gallon bottle is 0.995 gallon.

Construct a 99% confidence interval estimate for the population mean amount of water included in a 1-gallon bottle.

b) On the basis of these results, do you think that the distributor has a right to complaint to the water bottling company? Why?

c) Must you assume that the population amount of water per bottle is normally distributed? Explain.

Part III
In a survey of 529 travelers, 386 said that location was very important and 323 said that room quality was very important in choosing a hotel.
a) Construct a 95% confidence interval estimate for the population proportion of travelers who said that location was very important for choosing a hotel.
b) The percentage of travelers that said that location was very important for choosing a hotel is a statistic or a parameter? Explain
c) If we need to conduct a follow up study, what sample size is need to estimate the population proportion of travelers who said that location was very important for choosing a hotel with 95% confidence within ± 5%?

Horner Construction Co. uses the percentage-of-completion

method. In 2018, Horner began work on a contract for

$22,000,000; it was completed in 2019. The following cost data

pertain to this contract for the year-ended 2018... Cost incurred

during the year: $7,800,000... Estimated costs to complete:

$5,200,000. The following cost data pertain to this contract for the

year-ended 2019... Cost incurred during the year: $5,600,000...

Estimated costs to complete: n/a. If the completed-contract method

of accounting was used, the amount of gross profit (loss)to be

recognized for years 2018 and 2019 would be

a. 2018: $9,000,000... 2019: $ 0

b. 2018: $8,600,000... 2019: ($400,000)

c. 2018: $ 0... 2019: $8,600,000

d. 2018: $ 0... 2019: $9,000,000

You are an intern at the health department of your city. An outbreak of coronavirus has been detected in a hotel in your city. 10 guests are infected. You must decide whether to quarantine the hotel or not. There are 1000 guests in the hotel. From previous experience, we know that at least half of them will be infected if the quarantine goes in to effect. If there is no quarantine the virus will spread more rapidly to the general population in the city. What would you do? Your city has 8 million population. The death rate of this virus is 2%, the cost of lock down of hotel is AED 1M per day. The length of the quarantine is 2 months. What would you do? Use the five step ethical decision making approach to resolve this case and indicate which approach you will be taken.

1. The Sleep Well Corporation operates many hotels throughout the world. Suppose one of its Chicago hotels is facing difficult times because of the opening of several competing hotels. To accomodate its flight personnel, Air One has offered Sleep Well a contract for the coming year that provides a rate of $75 per night per room for a minimum of 45 rooms for 365 flights. This contract would assume Sleep Well of selling 45 rooms of space nightly, even if some of the rooms are vacant on some nights. Assume zero variable costs. The Sleep Well manager has mixed feelings about the contract. On several peak nights during the? year, the hotel could sell the same space for $175 per room. Suppose the Sleep Well manager signs the contract. What is the opportunity cost of the 45 rooms on October? 20, the night of a big convention of retailers when every nearby hotel room is? occupied? What is the opportunity cost on December? 28, when only 9 of these rooms would be expected to be rented at an average rate of $105??

If the? year-round rate per room averaged $85?, what percentage of occupancy of the 45 rooms in question would have to be rented to make Sleep Well indifferent about accepting the? offer?

PLEASE EXPLAIN HOW YOU GOT THE ANSWER WITH STEPS.

True or False:

1. The annual percentage rate is the simple percentage cost of all finance charges over the life of the loan on an annual basis.
2. With a discount method single-payment loan, the entire interest charge is subtracted from the principal before you receive the money, and at maturity you repay the principal.
3. The APR is lower when money is lent under the discount method than when it is lent under the simple interest method.
4. Amortization refers to the process in which a large proportion of the early payments of an installment loan goes to cover principal, and the later payments have a larger proportion going towards the payment of interest.
5. Life insurance and health insurance are designed to transfer the catastrophic risk you can't afford to keep onto the insurance companies.

On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,540,000. During 2018, costs of $2,180,000 were incurred with estimated costs of $4,180,000 yet to be incurred. Billings of $2,680,000 were sent, and cash collected was $2,430,000.

In 2019, costs incurred were $2,680,000 with remaining costs estimated to be $3,870,000. 2019 billings were $2,930,000 and $2,655,000 cash was collected. The project was completed in 2020 after additional costs of $3,980,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Required:
1. Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method?
2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred).
2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurred).
3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019.

Also, What is construction expenses to date for 2019?

You purchased land 3 years ago for $75,000 and believe its market value is now $120,000. You are considering building a hotel on this land instead of selling it. To build the hotel, it will initially cost you $205,000, an expense that you plan to depreciate straight line over the next three years. Wells Fargo offered you a loan for $60,000 at an 8% interest rate to be repaid over the next 4 years. You anticipate that the hotel will earn revenues of $334,000 each year, while expenses will be a mere $75,000 each year. The initial working capital requirement will be $14,000 which will be recovered in the last year. The tax rate is 28%. Your estimated cost of capital is 15%. What is the net present value of this project?