Review Question

1. What is sales revenue forecasting?

2. What types of data are needed to forecast sales or revenues?

3. What is cost estimation?

4. What is the first step managers need to complete when estimating costs?

20. How does technology affect costs?

22. Identify three environmental factors that affect business decisions related to costs.

25. How does technological innovation generally affect a firm' s costs?

27. What is meant by the learning curve?

28. What are controllable costs?

Exercise and Problems

6. Mega Profits Company estimated its annual total cost function to be: Y = $150,000 + $.57 x Assuming that Y represents total cost and x equals the number of units sold, use this equation to answer the following questions:

a. What is the firm' s total fixed cost?

b. What is the firm' s variable cost per unit?

c. Compute total costs if the firm sells 100,000 units.

d. Compute total costs if the firm sells 200,000 units.

e.  If the firm' s product sells for $1.00, how many units does the firm need to sell to break even?

f.  If the firm' s product sells for $1.50, how many units does the firm need to sell to break even?

7. Morrison Hotel uses its banquet room to host parties, dinner dances, and business meetings. The hotel serves meals and provides a variety of services for each event. A local consultant analyzed recent cost data and estimated the total cost function per event to be as follows: Y = $1,000 + $9.00 x Assuming that Y represents total cost and x equals the number of guests, use this equation to answer the following questions:

a. What is the firm' s total fixed cost per event?

b. What is the firm' s variable cost per guest?

c. Compute total costs if 50 guests attend the event.

d.  Compute total costs if 100 guests attend an event.

e.  If the hotel charges $25.00 per guest, how many guests must attend for the hotel to break even at each event?

f.  If the hotel charges $28.00 per guest, how many guests must attend for the hotel to break even at each event?

g.  If the hotel charges $28.00 per guest, would you advise this hotel to host events for 50 or fewer guests? Why or why not?

3. Durango Mountain Bike Company wants to open a bicycle repair shop in a suburb of a major metropolitan area. The industry association estimates that 20 percent of bicycles are repaired by similar service companies and that the average owner spends $100 per bicycle on maintenance each year. The census and local chamber of commerce data indicate that there are 10,000 bicycles in the county. Three other competitors exist within a twenty-five-mile radius of the proposed business location. Based on a consumer survey, the owners believe that they can capture 30 percent of the market in the first year of operation. Based on these data, address the following requirements:

a.  What is the potential number of bicycles likely to be commercially repaired?

b. What is the total potential bicycle repair revenue available in the market?

c. How much revenue can Durango Mountain Bike expect to generate?

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals.

A random sample of 35 home theater systems has a mean price of ​$144.00. Assume the population standard deviation is $15.90.

A. Construct a 90% confidence interval for the population mean.

The 90% confidence interval is (__,__)

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​convenient, use technology to construct the confidence intervals.

A random sample of 50 home theater systems has a mean price of ​$130.00. Assume the population standard deviation is $15.50.

Construct a​ 90% confidence interval for the population mean.

The​ 90% confidence interval is __,__

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals.

A random sample of 60 home theater systems has a mean price of $111.00. Assume the population standard deviation is $16.20.

The 90% confidence interval is(--,--)

The 99% confidence interval is(--,--)

Which interval is wider?

In Python

Suppose there is a movie theater who charges ticket based on ages. Less than 3 years old, free; between 3 to 12, $10; more than 12 years old, $15. Please design a program with loop to,

1) Ask the name then age of the audience,

2) Based on audience's input, tell the audience (with the person's name) how much is the ticket,

3) Stop the program when type in 'quit' in your program.

You are considering opening a drive-in movie theater and running it for ten years. You have spent after-tax $10,000 researching the land that will be used for theater, but if you take the project you expect to incur another immediate after-tax expense of $20,000 as you work with a consulting firm to decide how to most efficiently run the business.

The project entails an immediate $100,000 capital expenditure, which can be depreciated over 10 years. You expect to sell this capital investment for $25,000 at the end of the ten year project. Working capital expenses for the project are $50,000 immediately, $40,000 incurred two years from today, both of which are fully recovered in ten years (at the end of the project).

The project’s operating costs are expected to be $100,000 for each of the first five years and then (starting between t=5 and t=6) grow at -5% per year through the end of the project (i.e., through t=10). You expect the project’s revenues to start at $100,000 starting one year from today and remain constant for the life of the project.

1. ) You decide to use 10% as the project’s opportunity cost of capital. Your expected tax rate is 25%. What is the project’s NPV?

Sophie Bradford is the manager of Anthem's traditional Sunday​ Flicks, sponsored by the Anthem Student Association. The admission price is deliberately set at a very low $ 3.5. Each​ Sunday, a film has two showings and a maximum of 1,600 tickets can be sold for each showing. The rental of the auditorium is $ 280 and labor is $455​,including $120 for Bradford.Bradford must pay the film distributor a​ guarantee, ranging from $ 270 to $ 800, or 40% of gross admission​ receipts, whichever is higher. Before and during the​ show, she sells​ refreshments; these sales average 10% of gross admission receipts and yield a contribution margin of 50 %.

Requirement 1: On June 3, Bradford screened The Descendants. The film grossed $10,500. The guarantee to the distributor was $700 or 40% of gross admission receipts, whichever is larger. What operating income was produced for the student association.

Requirement 2: Recompute the results if the film grossed $1,400

Requirement 3: The​ "four-wall" concept is increasingly being adopted by movie producers. In this​ plan, the​ movie's producer pays a guaranteed fixed rental to the theater owner​ for, say, a​ week's showing of a movie and the producer receives the ticket receipts less the fixed rental. As a theater​ owner, how would you evaluate a​ "four-wall" offer?

art major x=86 x=80 s=4 theater major x=88 x=84 s=6 find the z score for each student b. based on the z score which student performed better within their class c. Find the coefficient of variation for both art and theater classes d. which class was more variable. 3. A landscaper wishes to use several different types of plants. The categories include color (red, yellow, and green), type (flowers and shrubs}, and height (tall, medium and short). how many different combinations can he/she use if she selects one color, one type and one height

4. In a recent study, the following data was obtained in response to the question, do not favor recycling in your neighborhood

No Yes No Opinion

Males 35 20 25

Female 15 25 20

If a person is picked at ramdom

a. what is the probability that the person is either male or has no opinion

b. male given they have no opinion

c. male with opinion

d. has no opinion given they are male

e. a female and a No

f. a No given they are female

g. either female or is a Yes

h. No opinion given they are female

1. Compare and contrast the fields of clinical psychology and counseling psychology. Describe each specialization. In what ways are they similar? In what ways do they differ? Include three similarities and three differences in your answer.

2. When psychologists conduct scientific studies, they have one of three goals: to describe, to correlate, or to experiment. Describe each goal, including how they differ from one another.

3. You're sitting in the theater watching a movie when the fire alarm goes off. You jump and get out of your seat to leave the theater, but the alarm stops and an announcement is made that the alarm was unintentional and there is no emergency. You calm down and go back to enjoying your movie.

Name and explain the roles of the divisions of the autonomic nervous system in your responses.

4. Explain two ways in which the left and right hemispheres of the cerebrum differ in function.

5. Define and differentiate between sensation and perception. Use an example to illustrate your descriptions. Be sure to use the term that describes the conversion of environmental energy into neural signals.

6. Define and differentiate between bottom-up and top-down processing. Give an example of each in a single sensory experience.

1. Find a 95% confidence interval for the mean amount of money per capita spent on healthcare. (To do this you will need to use the variable health $ per capita in the Global Health Summary data set.) Round your answer to the nearest cent.
2. Describe what requirements must be met for this interval to be valid and whether you think that this data set meets these requirements.
3. Using a complete sentence, interpret the meaning of the confidence interval using the context of the problem.