EXERCISE 6-2. [LO 2] Mansard Hotels has five luxury hotels located in Boston, New York, Chicago, San Francisco, and Los Angeles. For internal reporting purposes, each hotel has an income statement showing its revenue and direct expenses. Additionally, the company allocates to each hotel a share of general administrative and advertising costs (e.g., salary of the company president, salary of the company CFO, hotel chain advertising, etc.) based on relative revenue.

a. Write a paragraph explaining why the allocation of general administrative and advertising costs to the specific hotels is potentially useful or potentially harmful.

Margaret Moore is the only owner of Carla Vista Park, a public camping ground near the Lake Mead National Recreation Area. Margaret has compiled the following financial information as of December 31, 2022.

(a)

Determine Margaret Moore’s net income from Carla Vista Park for 2022.

(b)

Prepare a balance sheet for Carla Vista Park as of December 31, 2022.

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?

Melissa recently paid $625 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $725 fee to register for the conference, $415 per night for three nights’ lodging, $205 for meals, and $395 for cab fare. (Leave no answers blank. Enter zero if applicable.) (Round your answer to the nearest dollar amount.)

a. What amount of the travel costs can Melissa deduct as business expenses?

b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,590 for transportation, $880 for lodging, and $390 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses?

c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense?

d. Suppose that Melissa’s permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $725 for the registration fee. She drove 105 miles over the course of three days and paid $169 for parking at the conference hotel. In addition, she spent $295 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel and she bought dinner on her way home each night from the conference. What amount of the travel costs can Melissa deduct as business expenses? (Use standard mileage rate. Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

Melissa recently paid $625 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $405 fee to register for the conference, $360 per night for three nights’ lodging, $280 for meals, and $240 for cab fare. (Leave no answers blank. Enter zero if applicable.) (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

a. What amount of the travel costs can Melissa deduct as business expenses?
b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses?
c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense?
d. Suppose that Melissa’s permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $405 for the registration fee. She drove 117 miles over the course of three days and paid $152 for parking at the conference hotel. In addition, she spent $625 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel and she bought dinner on her way home each night from the conference. What amount of the travel costs can Melissa deduct as business expenses? (Use standard mileage rate.)

Melissa recently paid $760 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $370 fee to register for the conference, $365 per night for three nights’ lodging, $250 for meals, and $300 for cab fare. (Leave no answers blank. Enter zero if applicable.) (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

A. What amount of the travel costs can Melissa deduct as business expenses?
Deductible Amount:

B. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,710 for transportation, $1,285 for lodging, and $475 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses?
Deductible Amount:

C. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense?
Deductible Amount:

D. Suppose that Melissa’s permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $370 for the registration fee. She drove 153 miles over the course of three days and paid $190 for parking at the conference hotel. In addition, she spent $430 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel and she bought dinner on her way home each night from the conference. What amount of these costs can Melissa deduct as business expenses? (Use standard mileage rate.)
Deductible Amount:

(Ch5.1) WasteKing uses a fleet of trucks in its business, and wants to know how distance affects these costs. It’s Miles driven and Operating costs during the recent 5 months were as follow: in January 18,300 miles driven with the total operating cost of $11,200; in February 16,500 miles with $10,700; in March 14,500 miles with $9,600; in April 11,500 miles with $7,020; and in May 10,300 miles driven with $7,200 of operating cost. Using the high-low method, what is the variable cost per mile?

Select one:

a. All listed choices are incorrect.

b. $0.5225 rounded.

c. $0.50 rounded.

d. $0.61 rounded.

5. In detail, summarize what the information that a five-number summary for the variable Per Capita Income provides for the City of Chicago.

Consider a city with three consumers: 1, 2, and 3. The city provides park land for the enjoyment of its residents. Parks are a public good, and the amount of park land (which is measured in acres) is denoted by z. The demands for park land for the three consumers are as follows:

D1 =40–z, D2 =30–z, D3 =20–z.

These formulas give the height of each consumer’s demand curve at a given level of z. Note that each demand curve cuts the horizontal axis, eventually becoming negative. For the problem to work out right, you must use this feature of the curves in deriving DΣ. In other words, don’t assume that the curves become horizontal once they hit the axis.

(a) The height of the DΣ curve at a given z is just the sum of the heights of the individual demands at that z. Using this fact, compute the expres- sion that gives the height up to the DΣ curve at each z.

(b) The cost of park land per acre, denoted by c, is 9 (like the demand intercepts, you can think of this cost as measured in thousands of dollars). Given the cost of park land, compute the socially optimal number of acres of park land in the city.

(c) Compute the level of social welfare at the optimal z. This is just the area of the surplus triangle between DΣ and the cost line.

(d) Suppose there are two other jurisdictions, each with three consum- ers, just like the given jurisdiction. Compute total social welfare in the three jurisdictions, assuming each chooses the same amount of park acres as the first jurisdiction.

(e) Now suppose the population is reorganized into three homoge- neous jurisdictions. The first has three type-1 consumers (i.e., high demanders). The second has three type-2 consumers (medium demand- ers), and the third has three type-3 consumers (low demanders). Repeat (a), (b), and (c) for each jurisdiction, finding the DΣ curve, the optimal number of park acres, and social welfare in each jurisdiction.

(f) Compute total social welfare by summing the social welfare results from (e) across jurisdictions. How does the answer compare with social welfare from (d)? On the basis of your answer, are homogeneous juris- dictions superior to the original mixed jurisdictions?