Sector hotel, a 500-room hotel, rents hotel rooms for $120/night. At the current sales level of 400 rooms per night, Glitz currently makes a profit of $30/room:

                                   Per room

Sales                          $120

Costs                              90

Profit                              30

It costs Sector $90/night to maintain a room ($60 in depreciation, $25 in variable maintenance and $5 in fixed booking costs). Sector has been approached by Conventions2000.com to purchase a block of 300 rooms for $80/room per night. If this special order is accepted, Conventions2000.com would take care of all booking costs for the rooms booked through Conventions2000.com.

Required:

1. Which are the relevant costs?
2. What is the net change in net income if Glitz accepts the special offer from Conventions2000.com?
3. What other issues should Glitz consider before accepting this special offer?

A trucking company determined that the distance traveled per truck per year is normally distributed, with a mean 60 thousand miles and a standard deviation of 11 thousand miles.

How many miles will be traveled by at least 65% of the truck?
The number of miles that will be traveled by at least 65% of the truck is ____ miles

A community playhouse needs to determine the​ lowest-cost production budget for an upcoming show. They have to determine which set pieces to construction and which to rent. The organization has only two weeks to construct the set. The theater has two carpenters who work up to 12 hours a​ week, each at ​$12 an hour.​ Additionally, the theater has a scenic artist who can work 15 hours per week to paint as needed at ​$14 per hour. The set needs 20 flats​ (walls), two hanging​ drops, and three wooden tables​ (props). The number of hours required for each piece for carpentry and painting is shown below.​ Flats, hanging​ drops, and props can also be rented at a cost of ​$75​, ​$500​, and ​$400 ​each, respectively. How many of each unit should be built by the theater and how many should be rented to minimize total​ cost?

The optimal integer solution is to build __ flat(s) and rent __ ​flat(s); build __hanging​ drop(s) and rent __hanging​ drop(s); build __prop(s) and rent__ prop(s). This solution gives the ▼(minimum, maximum) ​cost, which is ​$__.

The data in the below portion of a frequency distribution shows the amount of miles run per day by people in a running club. What is the mean of the grouped data?

Miles (per day)            Frequency

1-2                               22

3-4                               30

5-6                               3

7-8                               28

9-10                             5

At 25oC, 20% of a certain type of laser diodes have efficiency below 0.3 mW/mA. For five diodes, selected by simple random sampling from a large population of such diodes, find the probability of the following events.
(a) All five have efficiency above 0.3 at 25oC.
(b) Only the second diode selected has efficiency below 0.3 at 25oC. (c) Exactly one of the five diodes has efficiency below 0.3 at 25oC.

(d) Exactly two of the five diodes have efficiency below 0.3 at 25oC.

Fatima Hopkins, the CEO of Central Adventures, is having difficulties with all three of her top management level employees. With one manager making questionable decisions, another threatening to leave, and the third likely ‘in the red’, Fatima is hoping there is a simple answer to all her difficulties. She is asking you (her accountant) for some advice on how to proceed.

Central Adventures owns and operates three amusement parks in Michigan: Funland, Waterworld, and Treetops. Central Adventures has a decentralized organizational structure, where each park is run as an investment center. Park managers meet with the CEO at least once annually to review their performance, where each park manager’s performance is measured by their park’s return on investment (ROI). The park manager then receives a bonus equal to 10% of their base salary for every ROI percentage point above the cost of capital.

Fatima’s first difficulty is with the Funland park. Funland is an outdoor theme park, with twelve roller coaster rides and several other attractions. This park has first opened 1965, and most of the rides have been in operation for 20+ years. Attendance at this park has been relatively stable over the past ten years. The park manager of Funland, Janet Lieberman, recently shared with Fatima a proposal to replace one of their older rides with a new roller coaster, a hybrid steel and wood roller coaster with a 90 degree, 200 foot drop and three inversions. The proposal indicated that the ride would cost $8,000,000 with an estimated life of 20 years. In addition, this new style of coaster would require additional maintenance and insurance, costing $125,000 each year. However, it projected that this new attraction would boost attendance, earning the park an additional $1,190,000 per year in revenues. Janet ultimately decided not to invest in this new attraction. Fatima (doing a quick mental calculation) saw that the investment had a payback period of eight years—much shorter than the life of the roller coaster—and is perplexed at Janet’s decision.

The second dilemma concerns the Waterworld park. Waterworld is an indoor water park, operating year-round. Run by park manager David Copperfield, Waterworld was built in 2016 and has increased attendance by 20% every year since. David recently sent you an email complaining that, based on the current bonus payout schedule, Janet Lieberman’s bonus last year was significantly higher than his. He points to the increasing attendance, and says that his park is being punished for having opened so recently (his park assets are much more recent than the roller coasters at Funland). He currently has an employment offer from another company at the same base pay rate, which he says he will accept if his performance is not appropriately acknowledged. Fatima needs to look at the relative performance across parks to determine how to proceed with David.

Central Treetops includes a high ropes course and has a series of ziplines that criss-cross over the Chippewa River. For many years, it was a popular venue for corporate team-building activities, so it is equipped with a main indoor facility with cafeteria and overnight guest rooms. This park has lost popularity in recent years, and has been ‘in the red’ for the past two years. If the park is not profitable this year, you will need to decide whether to close it - permanently. Included in the ‘Fixed COGS’ for Treetops is a $86,000 mortgage payment on the land and buildings for the park, which would still need to be paid by Central Adventures if the park is closed. Incidentally, you recently had a conversation with the regional head of the YMCA, who would like to open a summer camp in the central Michigan region. If you decided to close Treetops, you are fairly certain that you could lease that land to the YMCA for $250,000 annually.

A partial report of this year’s financial results for Central Adventures shows the following:

The ‘Selling and administrative costs’ are all incurred directly by each park, and are determined at the beginning of each year (that is, they do not change with the number of tickets sold). In addition to the information above, there are $2,542,920 in corporate costs, which are currently allocated evenly between the three parks. These costs are primarily due to employee benefits costs, which are billed at the corporate level. If the Treetops park is closed, the allocated corporate costs would decrease by $12,000. Central Adventures has a cost of capital of 12 percent (and Fatima uses the cost of capital as their required rate of return) and are subject to 18% income taxes.

Fatima needs to evaluate this year’s performance results before she can make any decisions. Is David’s complaint about the performance evaluation metrics valid? Is that also affecting management decisions in the form of Janet’s rejection of the proposed new rollercoaster? And is the company better off without Treetops? She sets off to the company accountant’s office to help get some answers.

Required:

Write your response in the form of a 1-2 page memo to Fatima Hopkins, from the perspective of the company accountant. Be sure to include all your financial analyses, clearly showing your calculations, to support your conclusions. Be sure to include the following points in your memo, and provide the appropriate financial analysis(es) to support your conclusions.

a. Evaluate Janet Lieberman’s (the Funland park manager) decision. Explain why it was/was not in Central Adventure’s overall best interest for Funland to reject the new rollercoaster.

B. Evaluate the validity of David Copperfield’s (the Waterworld park manager) complaint. Explain why it is (or is not valid), and what further information would be necessary.

Think about the last movie you saw in a movie theater. What aspects of the movie had international components in it? Are there more international elements included than compared to your favorite movie from 10 years ago?

In a telephone conversation with a sales representative of a linen company, the manager of a hotel ordered $1,000 worth of sheets. Following the conversation, the manager wrote a memo to the file documenting the agreement, initialed it, and sent a copy to the sales representative. One of the linen company’s competitors learned of this contract and contacted the hotel to tell them that the sheets were poorly manufactured and that they should stop buying from the linen company and buy everything from the competitor. The hotel then cancels the contract and starts buying from the competitor.

The linen company’s sheets are not poorly manufactured. The linen company can sue both the competitor and the hotel for losses suffered, one for a tort and one for breach of contract, but the linen company is not allowed to recover twice for the same harm.

What is the tort that the linen company can sue for and who is the defendant?

Who should they sue for the breach of contract claim?

What damages would be recoverable from each defendant so that it would not be recovering the same damages twice?

Does the Statute of Frauds create a defense to the lawsuit against the hotel?

Why or why not?

Its a law question