A restaurant has the following table of values for some of its burrito sales during January from the previous 10 years
| Years | 2007 | 2009 | 2010 | 2011 | 2013 | 2015 |
| Price | 10.50 | 9 | 10.75 | 11 | 13 | 12.25 |
| Sales | 110 | 165 | 105 | 98 | 75 | 80 |
a. Find a cubic model for the price demand functions. What is the correlation coefficient?
b. Using your cubic model, find a model for the revenue
c. What price will the revenue be maximized
d. Does your answer from part c guarantee that the profit will be maximized? why or why not?
In: Advanced Math
computer plz
The concept of present value is used to evaluate and make the investment decisions by investors. This criteria of discount rate and present value is used to make decision to select appropriate investment projects. If you have 2 investment projects with the same costs as the following:
First: For the first project total revenue at the end of every year is $1575 and the interest rate is 7.5%. Second: For second project, total revenue at the end of every year is $1750 and the interest rate is 15%.
Evaluate these two investment projects through 2 years period and decide which project is better to select.
In: Economics
Joshua company had the following information in 2016.
Accts Rec 12/31/16.....$15000
Allowance for uncollected account 12/31/16 (before adjustment).....$950
credit service revenue during 2016.....$45000
Cash service revenue during 2016.....$15000
Collections from customers on account during 2016.......$45000
If uncollectible accounts are determined by the aging-of-receivables method to be $ 1 240, the uncollectible account expense for 2016 would be $ 290. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2016 would be
In: Accounting
Supply the missing dollar amounts for the 2017statement of earnings of Kwan Company for each of the following independent cases:
| Case A | Case B | Case C | |
| Sales revenue | $ 8,000 | $ 6,000 | |
| Sales returns and allowance | 150 | 275 | |
| Net sales revenue | 5,920 | ||
| Beginning inventory | 11,000 | 6,500 | 4,000 |
| Purchases | 5,000 | 9,420 | |
| Transportation-in | 120 | 170 | |
| Purchase returns | 350 | 600 | |
| Cost of goods available for sale | 14,790 | 13,370 | |
| Ending inventory | 10,000 | 10,740 | |
| Cost of sales | 5,400 | ||
| Gross profit | 1,450 | ||
| Expense (operating) | 1,300 | 520 | |
| Pretax earnings (loss) | $ 800 | $ 500 | $ 0 |
In: Accounting
On January 1, 2017, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2017, and December 31, 2018. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%.
Required:
1. Determine the transaction price for the contract with Gibson.
Transaction price $ _______
2. Prepare the journal entries to record Fulton’s sales revenue on January 1 and interest revenue on December 31.
In: Accounting
Suppose that land is specific to corn, capital is specific to
automobiles, labor is mobile between sectors, and payments are as
follows:
Automobiles: Sales revenue = 200; payments to labor = 100; payments
to capital = 100
Corn: Sales revenue = 100; payments to labor = 40; payments to land
= 60
Holding the price of automobiles constant, suppose the increase in
the price of corn is 20% and the increase in the wage is 10%.
What is the impact of this on the income of land and the income of
capital? What has happened to the real income of land? What has
happened to the real income of capital? What has happened to the
real income of labor?
In: Economics
InterBearing is a major manufacturer of Bearings. In the initial example, this producer of bearings is a monopoly. The Total Cost Function is: TC = 1000 + 8Q & the Demand Function is Q = 21 – PQ
In: Economics
| Fortis Healthcare (amount in Rs. Millions) | |||
| 2018 | 2017 | 2016 | |
| Net Profit | -9,344 | 4,793 | 397 |
| Total Revenue | 47,005 | 47,397 | 43,524 |
| Net Profit Margin | 13.69% | 40.64% | 20.84% |
| Apollo Hospitals (amount in Rs. millions) | |||
| 2018 | 2017 | 2016 | |
| Net Profit (PAT) | 596 | 1,311 | 2,352 |
| Total Revenue | 82,756 | 72,774 | 62,597 |
| Net Profit Margin | 0.70% | 1.80% | 3.80% |
Please make a comparative analysis in 250 words for both companies over three years. Make sure the analysis goes into reason for the changes and sounds professional.
In: Accounting
2. The engineering team at Manuel’s Manufacturing Inc. is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel’s uses a 4-year planning horizon and a 10% per year MARR.
a. What is the discounted payback period of each investment (do linear interpolation to answer)?
b. Based on DPBP, which ERP system should Manuel purchase?
In: Economics
| Part 1 | ||||||||||||
| Aeronautics Company designs and manufactures electronic control systems for commercial airlines. | ||||||||||||
| Aeronautics Company does contract work for the two major aircraft makers and three other companies that make the narrow-body commercial jets. | ||||||||||||
| This is a very competitive field that Aeronautics Company operates in. | ||||||||||||
| It is imperative they manage the non-manufacturing overhead costs effectively in order to achieve an acceptable net profit margin. | ||||||||||||
| With declining profit margins in recent years, the CEO has become concerned that the cost of obtaining contracts and maintaining relations with its five customers may be getting out of hand. | ||||||||||||
| You have been hired to conduct a customer profitability analysis. | ||||||||||||
| Below is applicable revenue and cost information you should include in your customer profitability analysis. | ||||||||||||
| Sales | ||||||||||||
| Customer 1 | $18,000,000 | |||||||||||
| Customer 2 | 13,000,000 | |||||||||||
| Customer 3 | 4,000,000 | |||||||||||
| Customer 4 | 5,000,000 | |||||||||||
| Customer 5 | 4,000,000 | |||||||||||
| $44,000,000 | ||||||||||||
| Cost of Good Sold (COGS) as a percentage of sales is the following: | 80% | of Total Sales generated | ||||||||||
| Aeronautics Company selling and customer support team receives the following sales commissions on each customer account: | 6% | Sales generated per customer | ||||||||||
| The accounting staff determined the additional selling and customer support expenses related to the following four activity cost pools and the cost per activity. | ||||||||||||
| Usage of cost driver per customer | ||||||||||||
| Activity | Activity Cost Driver Data | Cost per unit of activity | Customer 1 | Customer 2 | Customer 3 | Customer 4 | Customer 5 | |||||
| 1. Sales Visits | Number of visit days | $1,300 | 106 | 130 | 52 | 34 | 16 | |||||
| 2. Product adjustments | Number of adjustments | 1,250 | 23 | 36 | 10 | 6 | 5 | |||||
| 3. Phone and email contracts | Number of calls/contracts | 150 | 220 | 354 | 180 | 138 | 104 | |||||
| 4. Promotion and entertainment events | Number of events | 1,400 | 82 | 66 | 74 | 18 | 10 | |||||
| In addition to the above, the sales staff used the corporate jet for trips to customers at a cost per hour as stated below and jet hours used per customer as follows: | ||||||||||||
| There is a cost of | $900 | hour | ||||||||||
| Hours used of jet | ||||||||||||
| Customer 1 | 24 | |||||||||||
| Customer 2 | 36 | |||||||||||
| Customer 3 | 5 | |||||||||||
| Customer 4 | 0 | |||||||||||
| Customer 5 | 6 | |||||||||||
| Required: | ||||||||||||
| 1. Develop a customer profitability analysis for Aeronautics Company that shows the sales, cost of goods sold, gross profit on sales, and all costs that can be assigned to the five customers. | ||||||||||||
| Include the customer profitability ratio for each customer and the company. Make sure you use cell references to make all your calculations. | ||||||||||||
| 2. What type of actions might the company take as a result of this analysis? You need to specifically reference the different customers in the analysis you have performed in your answer to this question. | ||||||||||||
| Solution: | Make sure you use cell references to make all your calculations. | |||||||||||
In: Accounting