The Gulf Sea Turtle Conservation Group (GSTCG), a non–profit group of volunteers working to collect data on nesting sea turtles and to promote sea turtle conservation, is considering creating a video to educate people about sea turtle conservation. The cost of duplicating a video on a DVD and mailing the DVD is $5.56. In a GSTCG member meeting, the video plan was discussed.
The first two columns of Table 1 below shows the expected demand for the DVD at different suggested donation levels, and they can act as a single-price monopolist if they choose to. The receipts will be used to fund GSTCG supplies for their data collection and conservation work. At the end of each sea turtle nesting season, any excess funds
are donated by the GSTCG to a local non-profit sea turtle research and rehabilitation facility.
a. Complete Table 1 by computing the Total Revenue, Marginal Revenue, Total Cost, and Profit columns, each rounded to two decimal places. The cost of duplicating a video on a DVD and mailing the DVD, the Marginal Cost, is $5.56. (1 point)
Table 1
|
Suggested Donation per DVD Request |
Anticipated Number of DVD Requests |
Total Revenue |
Marginal Revenue |
Total Cost |
Profit |
|
$19.00 |
0 |
$0 |
$0 |
$0 |
$0 |
|
$15.00 |
2 |
$30 |
$15 |
$11.12 |
$18.88 |
|
$9.50 |
5 |
$38 |
$4.00 |
$22.24 |
$15.76 |
|
$7.75 |
9 |
$77.50 |
$6.58 |
$55.60 |
$21.90 |
|
$3.00 |
15 |
$45 |
$-6.50 |
$83.40 |
$-38.40 |
|
$0.00 |
24 |
$0 |
$-9 |
$111.20 |
$-111.20 |
b. The President wants the GSTCG to provide videos to generate the most possible donations (Total Revenue). What price is the President of the GSTCG favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)
c. The Education Outreach Committee wants the GSTCG to provide videos to the most possible number of people. What price is the Educational Outreach Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)
d. The Treasurer of the GSTCG wants the DVD program to be as efficient as possible so that the marginal revenue equals marginal cost. What price is the Treasurer favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)
e. The Fundraising Committee wants the DVD program to generate as much profit in donations as possible. What price is the Fundraising Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)
In: Economics
Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows:
| Front office personnel (desk, clerks, etc.) | $ | 8,800 | |
| Administrative and executive salaries | 4,400 | ||
| Interest on resort purchase | 3,400 | ||
| Advertising | 600 | ||
| Housekeeping | 2,400 | ||
| Depreciation on reservations computer | 80 | ||
| Room maintenance | 880 | ||
| Carpet-cleaning contract | 50 | ||
| Contract to repaint rooms | 440 | ||
| $ | 21,050 | ||
| Pine Valley | Oak Glen | Mimosa | Birch Glen | Total | |||||||||||
| Revenue (000s) | $ | 6,150 | $ | 9,190 | $ | 10,180 | $ | 7,530 | $ | 33,050 | |||||
| Square feet | 57,550 | 79,475 | 43,345 | 86,795 | 267,165 | ||||||||||
| Rooms | 86 | 122 | 66 | 174 | 448 | ||||||||||
| Assets (000s) | $ | 95,795 | $ | 141,875 | $ | 75,075 | $ | 59,650 | $ | 372,395 | |||||
Required:
1. Based on annual revenue, what amount of the central office costs are allocated to each resort?
2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools?
3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort?
Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.)
| Req. 1 | |||||||||||||
|
Req. 2
Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? (Enter your answers in thousands of dollars.)
|
Req. 3
Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
|
Complete a Balance Sheet ABC Corporation |
|||
| Income Statement | |||
| For the Year Ended December 31, 2014 | |||
| Sales Revenue | 792,845 | ||
| Less: Operating Expenses | |||
| Wages Expense | 80,350 | ||
| Office Expense | 21,700 | ||
| Utilities Expense | 31,000 | ||
| Advertising Expense | $ 8,400 | ||
| Insurance Expense | 82,000 | ||
| Employee Compensation Expense | 10,000 | ||
| Bad Debt Expense | 25,000 | ||
| Pension Expense | 40,000 | ||
| Depreciation Expense | 33,759 | ||
| Total Operating Expenses | 332,209 | ||
| Income from Operations | 460,636 | ||
| Other Revenue/Expenses | |||
| Rent Revenue | 12,000 | ||
| Interest Income | 19,561 | ||
| Interest Expense | (1,175) | 30,386 | |
| Income before Taxes | 491,021 | ||
| Income Tax Expense | (63,800) | ||
| Net Income | 427,221 | ||
| ABC Corporation | ||
| Adjusted Trial Balance | ||
| December 31, 2014 | ||
| Debit | Credit | |
| Accounts Payable | $ 65,340 | |
| Accounts Receivable | 190,300 | |
| Accumulated Depreciation: Building | $ 5,400 | |
| Accumulated Depreciation: Equipment | 29,359 | |
| Accumulated Other Comprehensive Income | 15,000 | |
| Additional Paid in Capital - Treasury Stock | 21,000 | |
| Advertising Expense | 8,400 | |
| Allowance for Doubtful Accounts | 25,000 | |
| Bad Debt Expense | 25,000 | |
| Bonds Interest Expense | 43,088 | |
| Bonds Payable | 1,600,000 | |
| Building | 150,000 | |
| Cash | 1,270,676 | |
| Common Stock | 101,000 | |
| Depreciation Expense | 33,759 | |
| Dividends | 41,000 | |
| Employee Compensation Expense | 10,000 | |
| Employee Stock Option Outstanding Account | 10,000 | |
| Equipment | 50,000 | |
| Fair value adjustment (Trading) | (8,000) | |
| Income Taxes Expense | 63,800 | |
| Income Taxes Payable | 63,800 | |
| Insurance Expense | 82,000 | |
| Interest Expense | 1,175 | |
| Interest Income | 19,561 | |
| Interest Receivable | 16,000 | |
| Inventory | - | |
| Investment in Bonds of Intuit Corp | 200,000 | |
| Investment in Bonds of Intuit Corp - Discount | 18,615 | |
| Land | 75,000 | |
| Lease Equipment | 43,796 | |
| Lease Liability | 33,293 | |
| LT (Debt) Investments (HTM) | 177,824 | |
| Notes Payable | 236,175 | |
| Office Expense | 21,700 | |
| Patent | 37,500 | |
| Pension Expense | 40,000 | |
| Pension-Related Asset | 10,000 | |
| PIC in Excess of Par - Common Stock | 33,000 | |
| Premium on Bonds Payable | 118,630 | |
| Prepaid Insurance | 17,400 | |
| Purchases | 350,000 | |
| Rent Revenue | 12,000 | |
| Retained Earnings | - | |
| Sales Revenue | 792,845 | |
| Short-term Investments | 167,000 | |
| Treasury Stock | - | |
| Unearned Rent Revenue | 24,000 | |
| Unrealized Holding Gains and Losses | 8,000 | |
| Utilities Expense | 31,000 | |
| Wages Expense | 80,350 | |
| Wages Payable | $ 12,750 | |
| Total | $ 3,236,768 | $ 3,236,768 |
| ABC Corporation | ||
| Statement of Retained Earnings | ||
| For the Year Ended December 31, 2014 | ||
| Beginning Balance | ||
| Add: Net Income | $ 427,221 | |
| Less: Dividends | 41,000 | |
| Ending Balance | $ 386,221 | |
In: Accounting
Modified True/False
Please indicate if the statement below is true or false. If the statement is false, indicate and make the correction to make the statement true!!!!!!!!!!!!!
1. General obligation bonds are less restrictive than revenue backed bonds with few limitations regarding the amount that can be issued.
True/False ____________________
Correction to make true ___________________________________________________________________________________
2. When issuing revenue backed bonds, receipts from all issuing governments sources are pledged to pay the interest and principal back to the bond purchasers.
True/False _______________________
Correction to make true
____________________________________________________________________________________
3. The theory of tax expenditures is what drives the rationale for investors to purchase State/local bonds of either type (general obligation/revenue backed)
True/False________________________
Correction to make true
___________________________________________________________________________________
4. The Federal American Recovery Act, signed into law by President Obama, provided a mechanism that achieved the goals of federal grant policy by correcting for externalities and providing for a macroeconomic stabilizing mechanism.
True/False _____________________
Correction to make true
____________________________________________________________________________________
5. Intergovernmental grants do not provide a mechanism in which you can effectively substitute the granting government’s tax revenue for that of the recipient government.
True/False ___________________
Correction to make true
____________________________________________________________________________________
6. Financing government expenditure through a user fee is similar to tax financing because in both revenue streams there is always a direct relationship between the amount of payment and the level of service received.
True/False ________________
Correction to make true
____________________________________________________________________________________
7. From the point of view of the investors, revenue backed bonds are a less risky investment as compared to general obligation bonds both of which can be issued by a State or local government.
True/False____________________
Correction to make true
____________________________________________________________________________________
8. A rationale for utilizing user charges on all residents to finance the cost of construction of a convention center is that this investment in the community gives individuals the option of using it in the future.
True/False ______________________
Correction to make true
__________________________________________________________________________________
9. The fundamental economic characteristic regarding government bonds and some private-activity bonds issued by states and localities is that the federal government does not tax the interest income received by investors, either under the individual or corporate income taxes.
True/False__________________
Correction to make true
____________________________________________________________________________________
10. A categorical federal grant will restrict the utilization of the funds to a specific purpose or use.
True/False _______________
Correction to make true
____________________________________________________________________________________
11. Policymakers (i.e. politicians) tend to regard fees as less appealing than taxes when debating proposals to increase revenues.
True/False _____________________
Correction to make true
____________________________________________________________________________________
In: Finance
On the “CJE” worksheet, prepare the closing entries in good form for Grizzlies, Inc. at the end of December 31, 2017. Again, all numbers should be cell references or formulas, not manually entered.
| Grizzlies, Inc. | ||||||||||
| Worksheet | ||||||||||
| For the Year Ended December 31, 2017 | ||||||||||
| Unadjusted | Adjusted | |||||||||
| Trial Balance | Adjustments | Trial Balance | Income Stmt | Balance Sheet | ||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. |
| Cash | 36,000 | 36,000 | 36,000 | |||||||
| Accounts Receivable | 277,000 | 277,000 | 277,000 | |||||||
| Inventory | 242,500 | 242,500 | 242,500 | |||||||
| Prepaid Insurance | 11,200 | 4,200 | 7,000 | 7,000 | ||||||
| Prepaid Rent | 3,000 | 1,200 | 1,800 | 1,800 | ||||||
| Store Supplies | - | 2,100 | 2,100 | 2,100 | ||||||
| Shop Supplies | 7,500 | 3,600 | 3,900 | 3,900 | ||||||
| Store Equipment | 120,000 | 120,000 | 120,000 | |||||||
| Accumulated Depreciation - Store Equipment | 13,200 | 15,840 | 29,040 | 29,040 | ||||||
| Office Equipment | 32,000 | 32,000 | 32,000 | |||||||
| Accumulated Depreciation - Office Equipment | 2,550 | 10,200 | 12,750 | 12,750 | ||||||
| Accounts Payable | 49,000 | 49,000 | 49,000 | |||||||
| Salaries Payable | 10,800 | 10,800 | 10,800 | |||||||
| Interest Payable | 360 | 360 | 360 | |||||||
| Utilities Payable | 1,300 | 1,300 | 1,300 | |||||||
| Unearned Consulting Revenue | 14,000 | 10,500 | 3,500 | 3,500 | ||||||
| Unearned Rent Revenue | 16,800 | 15,400 | 1,400 | 1,400 | ||||||
| Note Payable | 18,000 | 18,000 | 18,000 | |||||||
| Common Stock | 300,000 | 300,000 | 300,000 | |||||||
| Retained Earnings | 189,350 | 189,350 | 189,350 | |||||||
| Dividends | 12,800 | 12,800 | 12,800 | |||||||
| Sales Revenue | 1,576,150 | 1,576,150 | 1,576,150 | |||||||
| Consulting Revenue | 10,500 | 10,500 | 10,500 | |||||||
| Rent Revenue | 15,400 | 15,400 | 15,400 | |||||||
| Interest Revenue | ||||||||||
| Cost of Goods Sold | 975,000 | 975,000 | 975,000 | |||||||
| Sales Salaries Expense | 275,000 | 7,560 | 282,560 | 282,560 | ||||||
| Office Salaries Expense | 150,000 | 3,240 | 153,240 | 153,240 | ||||||
| Miscellaneous Administrative Expense | 5,650 | 5,650 | 5,650 | |||||||
| Miscellaneous Selling Expense | 13,900 | 13,900 | 13,900 | |||||||
| Depreciation Expense - Store Equipment | 15,840 | 15,840 | 15,840 | |||||||
| Depreciation Expense - Office Equipment | 10,200 | 10,200 | 10,200 | |||||||
| Store Supplies Expense | 17,500 | 2,100 | 15,400 | 15,400 | ||||||
| Shop Supplies Expense | 3,600 | 3,600 | 3,600 | |||||||
| Rent Expense | 1,200 | 1,200 | 1,200 | |||||||
| Insurance Expense | 4,200 | 4,200 | 4,200 | |||||||
| Interest Expense | 360 | 360 | 360 | |||||||
| Utilities Expense-Store | 1,118 | 1,118 | 1,118 | |||||||
| Utilities Expense-Office | 182 | 182 | 182 | |||||||
| 2,179,050 | 2,179,050 | 75,500 | 75,500 | 2,217,550 | 2,217,550 | 1,482,450 | 1,602,050 | 735,100 | 615,500 | |
| Net Income | 119,600 | 119,600 | ||||||||
| 1,602,050 | 1,602,050 | 735,100 | 735,100 | |||||||
In: Accounting
| a. What is trend in long-term debt paying ability of over the last three years for CVS - using ratios? | ||||||||||||
| b. What is trend in long-term debt paying ability of over the last three years Walgreens - using ratios? | ||||||||||||
| c. Which company has had better long-term debt paying ability over the last 3 years? Explain with ratios. | ||||||||||||
|
Income Statement for CVS |
||||||||||||
| Revenue | 12/31/2017 | 12/31/2016 | 12/31/2015 |
| Total Revenue | 184,765,000 | 177,526,000 | 153,290,000 |
| Cost of Revenue | 156,220,000 | 148,669,000 | 126,762,000 |
| Gross Profit | 28,545,000 | 28,857,000 | 26,528,000 |
| Operating Expenses | |||
| Research Development | - | - | - |
| Selling General and Administrative | - | - | - |
| Non Recurring | - | - | - |
| Others | - | - | - |
| Total Operating Expenses | - | - | - |
| Operating Income or Loss | 9,517,000 | 10,366,000 | 9,475,000 |
| Income from Continuing Operations | |||
| Total Other Income/Expenses Net | -208,000 | -671,000 | -21,000 |
| Earnings Before Interest and Taxes | 9,309,000 | 9,695,000 | 9,454,000 |
| Interest Expense | 1,041,000 | 1,058,000 | 838,000 |
| Income Before Tax | 8,268,000 | 8,637,000 | 8,616,000 |
| Income Tax Expense | 1,637,000 | 3,317,000 | 3,386,000 |
| Minority Interest | 4,000 | 4,000 | 7,000 |
| Net Income From Continuing Ops | 6,631,000 | 5,320,000 | 5,230,000 |
| Non-recurring Events | |||
| Discontinued Operations | -8,000 | -1,000 | 9,000 |
| Extraordinary Items | - | - | - |
| Effect Of Accounting Changes | - | - | - |
| Other Items | - | - | - |
| Net Income | |||
| Net Income | 6,622,000 | 5,317,000 | 5,237,000 |
| Preferred Stock And Other Adjustments | - | - | - |
| Net Income Applicable To Common Shares | 6,622,000 | 5,317,000 | 5,237,000 |
Income Statement for Walgreens
All numbers in thousands
| Revenue | 8/31/2017 | 8/31/2016 | 8/31/2015 |
| Total Revenue | 118,214,000 | 117,351,000 | 103,444,000 |
| Cost of Revenue | 89,052,000 | 87,477,000 | 76,691,000 |
| Gross Profit | 29,162,000 | 29,874,000 | 26,753,000 |
| Operating Expenses | |||
| Research Development | - | - | - |
| Selling General and Administrative | 23,605,000 | 23,873,000 | 22,085,000 |
| Non Recurring | - | - | - |
| Others | - | - | - |
| Total Operating Expenses | - | - | - |
| Operating Income or Loss | 5,557,000 | 6,001,000 | 4,668,000 |
| Income from Continuing Operations | |||
| Total Other Income/Expenses Net | -11,000 | -261,000 | 1,248,000 |
| Earnings Before Interest and Taxes | 5,546,000 | 5,740,000 | 5,916,000 |
| Interest Expense | 693,000 | 596,000 | 605,000 |
| Income Before Tax | 4,853,000 | 5,144,000 | 5,311,000 |
| Income Tax Expense | 752,000 | 953,000 | 1,032,000 |
| Minority Interest | 808,000 | 401,000 | 439,000 |
| Net Income From Continuing Ops | 4,078,000 | 4,173,000 | 4,220,000 |
| Non-recurring Events | |||
| Discontinued Operations | - | - | - |
| Extraordinary Items | - | - | - |
| Effect Of Accounting Changes | - | - | - |
| Other Items | - | - | - |
| Net Income | |||
| Net Income | 4,078,000 | 4,173,000 | 4,220,000 |
| Preferred Stock And Other Adjustments | - | - | - |
| Net Income Applicable To Common Shares | 4,078,000 | 4,173,000 | 4,220,000 |
In: Accounting
It is now 30 June and our business is preparing adjustments via a worksheet.
Complete the following adjustments in the worksheet (if no adjustment is necessary enter "0" in the relevant box). The ref is the number of the adjustment
Then answer the 3 questions at the bottom of the table.
1 Prepaid 12000 rent on 1 April for three months. Adjustments have been done for April and May.
2 30 June is a Sunday. Wages are paid fortnightly (8000) with the last payment made on Friday 21 June. As the busienss operates from Monday to Firday we need to accrue one week.
3 Earned 2500 of Subscriptions Revenue which had already being paid for by the client.
4 Work in Progress (for Services) is calculated to be 3000. (Use accrued revenue).
5 Office Supplies were counted on 30 June. They totalled 4000.
6 Depreciation for June is 2000.
7 Interest on Note Payable is 1000. This is payable in July.
| Worksheet for the month ended 30 June | |||||||
| Unadjusted TB | Adjustments | Adjusted TB | |||||
| Account | Dr | Cr | Ref | Dr | Cr | Dr | Cr |
| Cash At Bank |
30000 |
Answer | |||||
| Accounts Receivable | 40000 | Answer | |||||
| Inventory | 20000 | Answer | |||||
| Office Supplies | 5000 | Answer | Answer | Answer | Answer | ||
| Prepaid Rent | 4000 | Answer | Answer | Answer | Answer | ||
| Accrued Revenue | 0 | Answer | Answer | Answer | Answer | ||
| Equipment | 70000 | Answer | |||||
| Accum Depreciation | 35000 | Answer | Answer | Answer | Answer | ||
| Accounts Payable | 30000 | Answer | |||||
|
Interest Payable |
0 | Answer | Answer | Answer | Answer | ||
|
Salaries Payable |
0 | Answer | Answer | Answer | Answer | ||
|
Unearned Revenue |
3000 | Answer | Answer | Answer | Answer | ||
| Notes Payable | 75000 | Answer | |||||
| Owners Capital | 31500 | Answer | |||||
| Income Summary | |||||||
| Service Revenue | 150000 | Answer | Answer | Answer | Answer | ||
| Subscriptions Revenue | 100000 | Answer | Answer | Answer | Answer | ||
| COGS | 60000 | Answer | |||||
| Bank Fees | 500 | Answer | |||||
|
Depreication Expense |
15000 | Answer | Answer | Answer | Answer | ||
|
Interest Expense |
6000 | Answer | Answer | Answer | Answer | ||
| Rent Expense | 26000 | Answer | Answer | Answer | Answer | ||
| Salaries Expense | 141000 | Answer | Answer | Answer | Answer | ||
| Supplies Expense | 7000 | Answer | Answer | Answer | Answer | ||
| Total | 424500 | 424500 | Answer | Answer | |||
| Has this business made a profit or loss? | Answer Loss OR Profit |
| What are total assets | Answer 130000 OR 167000 |
| Will owners equity increase or decrease? | Answer Decrease OR Increase OR Cannot say |
Please answer all parts of the question.
In: Accounting
The following are the information for Chun Equipment Co. for 2018. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)
| Salaries expense | $ | 122,420 | Interest receivable (short term) | $ | 640 | ||
| Common stock | 52,000 | Beginning retained earnings | 51,193 | ||||
| Notes receivable (short term) | 16,150 | Operating expenses | 94,060 | ||||
| Allowance for doubtful accounts | 6,980 | Cash flow from investing activities | (103,210 | ) | |||
| Accumulated depreciation | 34,800 | Prepaid rent | 13,900 | ||||
| Notes payable (long term) | 123,360 | Land | 47,400 | ||||
| Salvage value of equipment | 6,670 | Cash | 24,050 | ||||
| Interest payable (short term) | 2,530 | Inventory | 161,560 | ||||
| Uncollectible accounts expense | 13,920 | Accounts payable | 57,290 | ||||
| Supplies | 3,130 | Interest expense | 32,450 | ||||
| Office equipment | 78,930 | Salaries payable | 11,190 | ||||
| Interest revenue | 5,600 | Unearned revenue | 59,760 | ||||
| Sales revenue | 519,590 | Cost of goods sold | 186,013 | ||||
| Dividends | 12,000 | Accounts receivable | 112,530 | ||||
| Rent expense | 5,140 | ||||||
Required
Prepare a multistep income statement and balance sheet for Chun Equipment Co. for 2018.
Prepare a multistep income statement for Chun Equipment Co. for 2018.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepare the balance sheet for Chun Equipment Co. for 2018. (Be sure to list the assets in the order of their liquidity.)
|
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In: Accounting
Based on the data below, what is the following?
1. Mean
2. Median
3. Standard deviation
4. Min
5. Max at the minimum
| Years | Weekend | Daily Tour Income | Number of Tourists=y | Daily Gross Revenue | Total Daily Income |
| 1 | Friday | 3378 | 432 | 4838.95 | 8216.95 |
| 1 | Saturday | 1198 | 139 | 3487.78 | 4685.78 |
| 1 | Sunday | 3630 | 467 | 4371.3 | 8001.3 |
| 2 | Friday | 4550 | 546 | 6486.48 | 11036.48 |
| 2 | Saturday | 2467 | 198 | 3437.39 | 5904.39 |
| 2 | Sunday | 3593 | 452 | 4571.43 | 8164.43 |
| 3 | Friday | 898 | 119 | 2515.15 | 3413.15 |
| 3 | Saturday | 2812 | 342 | 5462.11 | 8274.11 |
| 3 | Saturday | 2650 | 321 | 5498.89 | 8148.89 |
| 4 | Friday | 3230 | 402 | 5071.14 | 8301.14 |
| 4 | Saturday | 4798 | 523 | 8051.43 | 12849.43 |
| 4 | Sunday | 3253 | 353 | 4291.95 | 7544.95 |
| 5 | Friday | 2848 | 347 | 4545 | 7393 |
| 5 | Saturday | 4632 | 534 | 8865.01 | 13497.01 |
| 5 | Sunday | 3767 | 412 | 4710.64 | 8477.64 |
| 6 | Friday | 4499 | 529 | 10752.74 | 15251.74 |
| 6 | Saturday | 3868 | 422 | 6435.63 | 10303.63 |
| 6 | Sunday | 2489 | 288 | 3389.37 | 5878.37 |
| 7 | Friday | 3448 | 367 | 6129.58 | 9577.58 |
| 7 | Saturday | 3612 | 406 | 7357.12 | 10969.12 |
| 7 | Sunday | 1937 | 216 | 2121.76 | 4058.76 |
| 8 | Friday | 2548 | 294 | 4738.86 | 7286.86 |
| 8 | Saturday | 2833 | 317 | 4141.98 | 6974.98 |
| 8 | Sunday | 2214 | 284 | 4878.35 | 7092.35 |
| 9 | Friday | 1520 | 169 | 4102.49 | 5622.49 |
| 9 | Saturday | 4322 | 462 | 8639.55 | 12961.55 |
| 9 | Sunday | 1833 | 203 | 3946.71 | 5779.71 |
| 10 | Friday | 2271.63 | 235 | 4236.31 | 6507.94 |
| 10 | Saturday | 2407.88 | 266 | 5613.27 | 8021.15 |
| 10 | Sunday | 1772.17 | 182 | 5580.17 | 7352.34 |
| 11 | Friday | 1494 | 177 | 3833.52 | 5327.52 |
| 11 | Saturday | 1998 | 213 | 3986.57 | 5984.57 |
| 11 | Sunday | 1388 | 165 | 2721.56 | 4109.56 |
| 12 | Friday | 1925 | 190 | 3952.19 | 5877.19 |
| 12 | Saturday | 2695 | 243 | 6281.3 | 8976.3 |
| 12 | Sunday | 1525 | 172 | 3356.14 | 4881.14 |
| 13 | Friday | 1725 | 187 | 3822.59 | 5547.59 |
| 13 | Saturday | 2450 | 253 | 4141.75 | 6591.75 |
| 13 | Sunday | 1407.5 | 173 | 3312.41 | 4719.91 |
| 14 | Friday | 2394 | 242 | 4571.5 | 6965.5 |
| 14 | Saturday | 3012 | 311 | 6363.3 | 9375.3 |
| 14 | Sunday | 2058 | 239 | 3502.22 | 5560.22 |
| 15 | Friday | 2427 | 267 | 5881.13 | 8308.13 |
| 15 | Saturday | 3189 | 336 | 10409.13 | 13598.13 |
| 15 | Sunday | 2109 | 178 | 4955.05 | 7064.05 |
| 16 | Friday | 2244 | 184 | 4347.41 | 6591.41 |
| 16 | Saturday | 3195 | 274 | 4935.17 | 8130.17 |
| 16 | Sunday | 1017 | 114 | 3486.27 | 4503.27 |
| 17 | Friday | 3470 | 325 | 6290.99 | 9760.99 |
| 17 | Saturday | 5323 | 478 | 13132.55 | 18455.55 |
| 17 | Sunday | 2345 | 242 | 5014.45 | 7359.45 |
| 18 | Friday | 1671 | 177 | 2740.23 | 4411.23 |
| 18 | Saturday | 2321.94 | 246 | 4423.31 | 6745.25 |
| 18 | Sunday | 1542 | 182 | 2650.48 | 4192.48 |
In: Statistics and Probability
A company operates a solar installation in the desert in Western Australia. It is reviewing its operating practices with a view to making them more efficient
. a) The solar installation generates electric power from sunlight and incurs operating costs for cleaning the solar modules (sometimes called solar panels) and replacing solar modules that have failed. The annual revenue from the electric power is variable due to variable cloudiness and solar module failure and has a mean of $2.78m and a standard deviation of $0.32m. The annual operating costs have a mean of $0.51m and a standard deviation of $0.12m. Calculate the mean and standard deviation of the annual profit = annual revenue – annual operating costs.
b) Expected revenue varies systematically from one month to another, being higher in the summer when there is more sunshine. Monthly operating costs follow the same probability model regardless of the month (same mean and standard deviation apply to all months). Calculate, if possible, the mean and standard deviation of (i) monthly operating costs (ii) monthly profits. If a calculation is not possible, give the reason.
c) The solar installation is located in the desert 100 km from the nearest office of the company that operates it and the company sends a maintenance crew out quarterly (once every 3 months) to clean dust and sand off the solar modules and check for mechanical or electrical problems. Each solar module is also monitored electronically over the Internet so that the operating company is alerted immediately when a solar module fails. On average 1.3 modules fail per month and the maintenance crew replaces any failed modules on their quarterly visits. Module failures are independent of each other and occur at random. The loss of a few solar modules does not impact revenue enough to justify the cost of sending the maintenance crew before the next quarterly visit. However the operating company decides that if more than 7 modules have failed they should send the maintenance crew out immediately to replace the failed modules. What is the probability of the maintenance crew having to go to the solar installation before the end of the regular 3-month period?
d) If 8 modules fail, the maintenance crew loads 9 replacement modules into their truck in case one is smashed during the 100 km drive, much of which is over uneven dirt tracks through the desert. Past experience shows that the probability of any individual module being smashed on this journey is 0.043. The operations manager wants the probability that the crew arrives with less than 8 working modules to be < 0.05. How many replacement modules should the maintenance crew load into their truck so as to achieve this objective? Answer this question, stating your assumptions clearly, and comment on whether the assumptions are likely to be true.
e) The solar modules are covered by a 25-year warranty which covers the cost of the replacement module itself but not the cost of driving 100 km and installing it. The operating company plans on visiting the site only once every 3 months and is therefore considering purchasing “business continuity insurance” which would cover the loss of revenue from failed solar modules for an annual premium of $5000. In order to decide whether it is worth paying this premium the company needs to calculate its expected revenue loss from failed modules. The average loss of revenue from one failed module is $200 per month. If one module fails during a 3-month period, we assume it fails in the middle of that period so that it has failed for a total of 1.5 months and the loss of revenue is 1.5*200 = $300. We make similar assumptions if 2,3,4, … modules fail during the 3 month period. Considering the probabilities of 0,1,2, …,10 modules failing during a 3-month period, what is the expected revenue loss during a 3-month period? Based on this expected loss, should the company purchase business continuity insurance?
In: Advanced Math