Problem 1

The

King Hotel

has 400 rooms. Each room rents for $62 per day and has a variable cost of $12 per day.

The hotel’s monthly fixed costs are $450,000.

(Assume that each month has 30 days.)

Required:

1.

Compute the breakeven point in rooms

rented.

2.

Compute the daily occupancy percentage that the hotel must have in order to break even.

3.

Compute the total number of rooms that must be paid for and occupied

per month

to earn a profit of

$100,000?

Consider the following hypothetical scenario: The city council has just approved the construction of an amusement park in your town. You are responsible for studying the impact of the new amusement park on the local economy and the surrounding community. Write a paper of approximately 500 words that addresses all of the questions below. Include the graphs, where indicated: o Question 1: You know that the amusement park will increase the traffic flow in the streets around the amusement park. There are both businesses and neighborhoods adjacent to the increased traffic flow. The cost to the community is estimated to be $6 per person.  What kind of externality is this? Why? o Graph the market for amusement park business, labeling the demand curve, the social-value curve, the market equilibrium level of output, and the socially optimal level of output.  What is the per-unit amount of the externality? o Question 2. You know that the amusement park will have events in the evening. This will increase both foot traffic and street traffic at night. You believe this will improve the safety of the surrounding businesses, with an estimated benefit of $2 per park attendee. What kind of externality is this? Why? o Question 3 Create a new graph illustrating the market for amusement park business for these two externalities together. Label the demand curve, the social-value curve, the market equilibrium level of output, and the final socially optimal level of output.  What is the per-unit amount when both externalities are considered?  Discuss both government and private solutions that would result in an socially optimal outcome.

Record the following transactions in the journal of Capital Project Fund and
Governmental Activities. (You must prepare the journal form using Excel)

1. A capital projects fund issued $10,000,000, 5 percent bonds for $10,100,000 to finance the
construction of a little league baseball park. Premiums received are to be used to service the
debt issue.

2. The Parks and Recreation Special Revenue Fund transferred $300,000 for use in construction.

3. A construction contract was awarded in the amount of $10,200,000.

4. A bill was received from the contractor for $5,100,000

.
5. The contractor bill is paid, and 6% retain is withheld.

6. The park renovations were completed and the final bill of $5,100,000 was received. The
contractor bill and retained are approved for payment in full. Total construction expenditures
were allocated as follows: $960,000,000 to building, and the remainder to equipment.

7. The capital projects fund temporary accounts were closed, and the capital projects fund was
closed by transferring remaining funds to the debt service fund for use in debt repayment.

Internal Control Case Study

Harper Theater is located in Midtown Mall. The cashier’s booth is near the entrance to the theater. Two cashiers are employed. Once works from 1-5 pm, the other from 5-9 pm.   Each cashier is bonded. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier’s shift.

After purchasing a ticket, the customer takes the ticket to an usher stationed at the entrance to the theater lobby some 60 feet from the cashier’s booth. The usher tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the usher.

At the end of each cashier’s shift, the theater manager removes the ticket roll from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. The manager also sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company’s accounting department. Receipts from the first shift are stored in a safe located in the manager’s office.

Required: using Microsoft Word, answer the following questions and attach the document to this assignment:

1. Identify the internal control procedures and their application to the cash receipts transactions of the Harper Theater. You will find the Internal Control Procedures (Proper documentation, Adequate insurance, Separation of assets from custody, Separation of duties, and Use of technology). For each Internal Control Procedure, identify any Internal Control Procedures that Harper Theater has in place and/or is missing. Be specific and use at least 300 words for your answer.
2. If the usher and cashier decide to collaborate to misappropriate cash, what actions might they take? For each action, what internal control might be employed to stop the misappropriation of cash? Be specific and use at least 200 words for your answer.

DO NOT COPY PREVIOUS ANSWERS THEY ARE INCORRECT

Internal Control Case Study

Harper Theater is located in Midtown Mall. The cashier’s booth is near the entrance to the theater. Two cashiers are employed. Once works from 1-5 pm, the other from 5-9 pm.   Each cashier is bonded. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier’s shift.

After purchasing a ticket, the customer takes the ticket to an usher stationed at the entrance to the theater lobby some 60 feet from the cashier’s booth. The usher tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the usher.

At the end of each cashier’s shift, the theater manager removes the ticket roll from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. The manager also sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company’s accounting department. Receipts from the first shift are stored in a safe located in the manager’s office.

Required: using Microsoft Word, answer the following questions and attach the document to this assignment:

1. Identify the internal control procedures and their application to the cash receipts transactions of the Harper Theater. You will find the Internal Control Procedures. The Internal Control procedures are establishment of clear responsibilities, proper documentation, adequate insurance, separation of assets from custody, separation of duties, and use of technology.  For each Internal Control Procedure, identify any Internal Control Procedures that Harper Theater has in place and/or is missing. Be specific and use at least 300 words for your answer.
2. If the usher and cashier decide to collaborate to misappropriate cash, what actions might they take? For each action, what internal control might be employed to stop the misappropriation of cash? Be specific and use at least 200 words for your answer.
3. Use complete sentences and good grammar.  

DO NOT COPY PREVIOUS ANSWERS THEY ARE INCORRECT

Create an excel workbook for the following questions. Answer these questions under your Solver work for each respective problem.

1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the hotel:

1. We want to figure out how many rooms of each type to build based on maximizing revenue if we fill up the hotel. We expect to charge $190 for a suite that is non-smoking and $140 for a budget room that is non-smoking. Smoking room customers for both suites and budget rooms will have to pay an additional $20 per night.
2. We can spend up to $7,500,000 on construction of our hotel. The cost to build a non-smoking budget room is $12,000. The cost to build a non-smoking suite is $15,000. It is $3,000 additional for a smoking room of either type for smoke detectors and sprinklers.
3. We require that the number of budget rooms be at least 1.5 times the number of suites, but no more than 3 the number of suites.
4. There needs to be at least 80 suites, but no more than 200.
5. Industry trends recommend that smoking rooms should be less than 50% of the non-smoking room and in addition, we require our builder gives us at least 4 smoking rooms.

Answer the following using your Solver answers:

1. How many of each room type should be built, and what would the revenue be for a night when our hotel was fully booked?
2. Without re-running Solver, what happens to our revenue if we get an additional $1,500,000 for building? Explain in words how you got this answer without re-running solver. Over what amount of construction costs can you use this procedure?
3. Over what range of room price can our budget non-smoking rooms vary over for us to get the same answer for the quantity of each type of room?

Explain what Net Operating Income is and what is meant by Net Operating Loss. What factors arre associated when calculating the Net Operating Income percentage for a hotel? Why is this measure a good way of evaluating the hotel performance?

A movie theater faces the following demand curves: Seniors: Ps = 27-Q Adults: Pa = 33 - Q The theater has a fixed cost of 50, and a constant marginal cost of 1 per ticket. a) If the movie theater uses segmenting, calculate the ticket prices charged to adults and seniors. b) How much profit does the movie theater earn from segmenting? c) Illustrate the profit maximizing choices on both inverse demand functions along with CS and profit. d) Suppose the theater is legally prevented from using price discrimination. Calculate and illustrate the aggregate inverse demand. What price will they charge per ticket? How much profit will they earn? e) Find the total consumer surplus without price discrimination and illustrate it on the aggregate inverse demand. Under which scenario are the consumers better off?

A survey found that​ women's heights are normally distributed with mean 62.4 in. and standard deviation 2.1 in. The survey also found that​ men's heights are normally distributed with mean 67.3 in. and standard deviation 3.1 in. Most of the live characters employed at an amusement park have height requirements of a minimum of 56 in. and a maximum of 63 in.

1.Find the percentage of men meeting the height requirement. What does the result suggest about the genders of the people who are employed as characters at the amusement​ park?

2.Find the percentage of women meeting the height requirement. What does the result suggest about the genders of the people who are employed as characters at the amusement​ park?

Wilson and Sons Corp. has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Wilson family has drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. In order to decide how many of each of the four kinds of rooms to plan for, the Wilson family will consider the following information.

• After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.
• Construction costs vary. The cost estimate for a lagoon view room is $12,000 and for a beachfront room is $15,000. Air purifying systems and additional smoke detectors and sprinklers add $3000 to the cost of any smoking room. Wilson and Sons Corp. has raised $6.3 million in construction guarantees for this portion of the building.
• There will be at least 100 but no more than 180 beachfront rooms.
• Design considerations require that the number of lagoon view rooms be at least 50% more than beachfront rooms but no more than 150% of beachfront rooms.
• Industry trends recommend that the number of non-smoking rooms be at least 50% more the number of smoking rooms.

Formulate a linear programming model to maximize revenue and solve in Excel.

Include in your answer the:

1. Model
2. Excel input
3. Answer report
4. Description of the optimal solution