You are advising the management at the company ABC regarding their pricing decisions in relation to a new product. Existing information is as follows:

Direct materials $5 per unit; direct labor $3 per unit; variable manufacturing overhead $4 per unit; variable selling and administrative expenses $3 per unit; fixed manufacturing overhead expenses $60,000; and fixed selling and administrative expenses $70,000.

There is an expectation that the company will sell 20,000 units.

Determine the unit product cost if the company uses an absorption costing approach in its cost-plus pricing.

Determine the target selling price given that the company uses a 20 percent markup percentage.

It has been brought to your attention that the company is making an investment of $200,000 in the making, marketing, and distribution of the 20,000 units of their new product. The management require a 40 percent return on this investment. Calculate the markup percentage on absorption costing given this information.

If the company only sells 15,000 units at $18 per unit what would be the return on investment?

Describe a limitation of the absorption costing approach to costing.

advice the management at company xyz regarding their pricing decisions in relation to a new product. Existing information is as follows: Direct materials $11 per unit; direct labor $3 per unit; variable manufacturing overhead $4 per unit; variable selling and administrative expenses $3 per unit; fixed manufacturing overhead expenses $60,000; and fixed selling and administrative expenses $80,000. There is an expectation that company will sell 30,000 units.

Determine the unit product cost if the company uses an absorption costing approach in its cost-plus pricing.

Determine the target selling price given that company uses a 15 percent markup percentage.

It has been brought to your attention that company is making an investment of $200,000 in the making, marketing, and distribution of the 30,000 units of their new product.

The management require a 20 percent return on this investment.

Calculate the markup percentage on absorption costing given this information. If the company only sells 25,000 units at $23 per unit what would be the return on investment?

Describe a limitation of the absorption costing approach to costing.

There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $18 for every $300 invested.  

A. What is the percentage rate of return for these 298 dairies?

B. The other two dairies have a cost structure that generates profits of $26 for every $200 invested. What is their percentage rate of return?

C. Assuming that the normal rate of profit in the economy is 10 percent, and firms cannot copy each other's technology, will there be entry or exit?

D. Will the change in the number of firms affect the two that earn $26 for every $200 invested?

• Yes, because those exiting firms will spread the technology.

• No, because the exiting firms didn't belong in the industry.

• No, because these firms are too small.

• Yes, because those two can claim a larger market share.

E. What will be the rate of return earned by most firms in the industry in long-run equilibrium?

F. If firms can copy each other’s technology, what will be the rate of return eventually earned by all firms?

A Gallup poll conducted in November of 2011 asked the following question, “What would you say is the most urgent health problem facing this country at the present time?” The choices were access, cost, obesity, cancer, government interference, or the flu. The responses were access (27%), cost (20%), obesity (14%), cancer (13%), government interference (3%), or the flu (less than 0.5%). The following is an excerpt from the Survey Methods section. “Results for this Gallup poll are based on telephone interviews conducted Nov. 3-6, 2011, with a random sample of 1,012 adults ages 18 and older, living in all 50 U.S. states and the District of Columbia. For results based on a total sample of national adults, one can say with 99.7% confidence that the maximum margin of sampling error is ±4 percentage points.” Prompt Based on this poll, find a 95% confidence interval to estimate the percentage of U.S. adults who feel that access to healthcare is the most urgent health problem facing this country. Interpret your interval in context.

1.       In most hotel companies, strategic planning is a series of tasks carried out by the GM and ownership working together to set long-term objectives, and the ways in which these objectives can be achieved by the management team. What is the missing step in this list of steps in the process of linking strategic plans to operational plans? Current Performance ; Market Potential ; _________; Baseline Financial Plan; Tactical Plan; Operating Budget; Funding plan.

a)      Economic Forecast

b)      Risk Assessment

c)       Cash Flow Forecast

d)      Strategy Impact Projects

2.       Select the group of words that is missing from the following statement. “Corporate culture is established at the _____ of an organization and can have a significant impact on the ability of managers to ensure that there is a link between strategy and every day _______ actions. Without such a link, there is a risk that _______ will be seen as only relevant to ______ and _____ ___________. They in turn may be accused of not knowing what is going on in the day to day operations of the business.”

a)      Head Office, Departmental, Management, Shareholders, Financial Institutions

b)      Top, Customer, Strategy; Owners, Senior Management

c)       Head Office, Departmental, Strategy, Owners, Financial Institutions

d)      Top, Departmental, Strategy, Owners, Senior Management

3.       Complete this list of the types of data that a hotel business will need in order to be able to plan effectively: target, budget, actual, ______, benchmark

a)      Estimated

b)      Historical

c)       Forecast

d)      Real

4.       Select the group of words missing from this summary of what represents a good business plan: It provides ownership or their representatives with a clear, whole business view of what needs to be managed. It provides a _______ view of the business within an adaptable planning horizon. It helps operational managers to ______ a short-sighted, departmental view of the business. It achieves a more effective use of ________, including working capital. It provides a framework for _____ management. It also identifies the planning systems and technology required to support performance management and _________.

a)       Birdseye, Avoid, Capital, Risk, Budgeting

b)      Strategic, Create, Capital, Risk, Budgeting

c)       Strategic, Avoid, Capital, Risk, Measurement

d)      Forecast, Avoid, Capital, Risk, Measurement

According to a research​ institution, the average hotel price in a certain year was ​$91.85. Assume the population standard deviation is ​$18.00 and that a random sample of 41 hotels was selected. Complete parts a through d below. a. Calculate the standard error of the mean. sigma Subscript x overbarequals​$ nothing ​(Round to two decimal places as​ needed.) b. What is the probability that the sample mean will be less than ​$93​? Upper P left parenthesis x overbar less than $ 93 right parenthesisequals nothing ​(Round to four decimal places as​ needed.) c. What is the probability that the sample mean will be more than ​$96​? Upper P left parenthesis x overbar greater than $ 96 right parenthesisequals nothing ​(Round to four decimal places as​ needed.) d. What is the probability that the sample mean will be between ​$91 and ​$92​? Upper P left parenthesis $ 91 less than or equals x overbar less than or equals $ 92 right parenthesisequals nothing ​(Round to four decimal places as​ needed.) Enter your answer in each of the answer boxes.

18. Armond is a shareholder of Brix and Mater Hotel Corporation. For the last few years, business has not been profitable for Brix and Mater. The firm has lost money on its operations. There has been some profit through sales of company assets, but the board of directors has refused to declare a dividend. This last year, the firm’s accountants failed to file fed­eral in­come tax returns and the board refused to pay the tax. Armond takes a close look at the firm and protests to the board, in particular over the fail­ure to declare a dividend, but the board ignores the complaint.

a. Which of these events, if any, would form a ground for a court to order the dissolution of Brix and Mater, on Armond’s petition?

b. If the court denies the petition, could Armond and the other shareholders dissolve Brix and Mater?

Work & Rest is an all inclusive hotel operating as a monopoly in a mid-sized community. The manager estimates that the hotel's total costs are described by the equation C = 0.1Q² + 20Q + 5000, where Q is the number or persons serviced and P is the price paid per person. Although it is located in a mid-sized community, it is close to a major highway that runs along the east coast. Often times, travelers would use the services of Work & Rest as a stop in their commute between two major citys. As such, the market demand for its service is described by the equation P = 170 - 0.2Q.

1. Given the current market conditions, Work & Rest's profit-maximizing quantity is  and the price charged per person is  ( 4 points)

Consider that after a series of reports from special interest groups, the local government decides to regulate Work & Rest by using the optimal pricing policy.

2. Given the successful implementation of the government's policy, Work & Rest's profit-maximizing quantity is  (2 points)

3. Given the successful implementation of the government's policy, what is Work & Rest's profit at its profit maximizing quantity?  (4 points)I

4. If the policy remains in place, and there are no further external shocks to the market, is it likely that West & Rest will continue to operate and provide service? (In the space provided enter will or will not)

In the long run, West & Rest  continue to provide service in this mid-sized community