A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $175 in either case.

Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.)

(Click to select)Kansas CityOmaha would produce the greater gross profit of $ .

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $177 in either case.

Omaha Kansas City

Annual fixed costs ($ millions) $ 1.2 $ 1.3

Variable cost per unit $ 27 $ 42

Expected annual demand (units) 9,750 10,350

Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.)

Which would produce the greater gross profit of $ ______________.

1.a. In a survey carried out at a famous water park, 28 children out of a random sample of 80 said that they used the water slide regularly. Find a 95 % confidence interval for the true proportion of all children at the water park who uses the water slide regularly. [4]

b. The owner of the water park found that 45 children out of a random sample of 100 said that they used the pool regularly. Find a 98% confidence interval for the true proportion of all children in the water park who uses the pool. [4]

In Avocado Park, 38% of the population is made up of immigrants. Consider a random sample of 78 residents of Avocado Park.

a.How many individuals must reside in Avocado Park to consider the selection of these individuals to be independent?

b.What is the probability that more than 30 of the residents in the sample are immigrants?

c. How many immigrants should be EXPECTED to be in the sample?

d.Peacoat Fashions currently employs 78 Avocado Park residents. If there are fewer than 20 employees that are immigrants, does that suggest that immigrants are less likely to be hired at Peacoat Fashions?

Amazing Productions performs London shows. The average show sells 1,000 tickets at $60 per ticket. There are 120 shows per year. No additional shows can be held as the theater is also used by other production companies. The average show has a cast of 60, each earning a net average of $320 per show. The cast is paid after each show. The other variable cost is program-printing cost of $8 per guest. Annual fixed costs total $459,200.

1)Compute revenue and variable costs for each show.

2)Use the equation approach to compute the number of shows Amazing Productions must perform each year to break even.

3)Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,264,000. Is this profit goal realistic? Give your reasoning.

4)Prepare Amazing Production's contribution margin income statement for 120 shows performed in 2016. Report only two categories of costs: variable and fixed.

On January 3rd, 2009 Holiday Inn Hotels entered into a contract with Great Designs Inc., an interior decorating firm, to have their hotel rooms re-decorated with new carpeting, bedspreads, curtains and wall art. Holiday Inn Hotels paid Great Designs Inc., $100,000 upfront and the work was to be completed by June 1st, 2009. On June 1st, 2009 work in 30% of the rooms was still not complete. The Hotel had a large conference group checking in on June 30th, 2009 that would result in all the rooms being occupied. The Hotel, therefore, terminated its contract with Great Designs Inc., and hired a different designer to finish the work. The new designer completed the work on June 30th, 2009 at an additional cost of $15,000. Answer the following questions:

1. Did Holiday Inn Hotels act correctly in discharging its contract with Great Designs Inc.? Explain.

2. Assuming that Holiday Inn Hotels did properly terminate Great Designs Inc., to what amount of damages is Holiday Inn Hotels entitled? Explain.

suppose that a hotel has 100 rooms and the hotel is accepting overbooking anticipating some cancellations. The probability for cancellation is 0.07.

a) What is the probability that somoen who made a reservation will be turned away if this hotel has allowed for 110 resevations?

b. 105 reservation

c. why did the answer to part b go down

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seats and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.

Required:

1. How would increasing the depreciation period affect American Movieplex’s earnings?
2. Does revising the estimate pose an ethical dilemma?
3. Who would be affected if Person’s suggestion is followed?

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seat and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.

Keene: Why 25 years? We've never depreciated leasehold improvements for such a long period.

Person: I noticed that in my review of back records. But during our expansion to the Midwest, we don't need expenses to be any higher than necessary.

Keene: But isn't that a pretty rosy estimate of these assets' actual life? Trade publications show an average depreciation period of 12 years.

Read through the dilemma. For the Original Post*, you will be arguing in favor of Larry Person's proposal to increase the depreciation period for leasehold improvements. Remember to use logic and the accounting principles you have learned thus far to develop your argument. You must include at least three points as to why this route is the best route to go (with one of those points being related to the learned accounting principles).

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seat and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant. Keene: Why 25 years? We've never depreciated leasehold improvements for such a long period. Person: I noticed that in my review of back records. But during our expansion to the Midwest, we don't need expenses to be any higher than necessary. Keene: But isn't that a pretty rosy estimate of these assets' actual life? Trade publications show an average depreciation period of 12 years. Read through the dilemma.

For the Original Post*, you will be arguing in favor of Larry Person's proposal to increase the depreciation period for leasehold improvements. Remember to use logic and the accounting principles you have learned thus far to develop your argument. You must include at least three points as to why this route is the best route to go (with one of those points being related to the learned accounting principles).