Giggles Comedy Emporium provides entertainment for birthday parties. Over the last year, Giggles has entertained at over 150 birthday parties. Giggles’ business is booming! The company has parties booked solid for the next six months. Customers generally must book 6-8 months in advance to secure a spot. Mark Spear, the owner of Giggles Comedy Emporium, however, is worried. His business is busy, his customers are extremely happy, his employees are happy, but he is barely breaking even. He cannot understand, with his business being so successful, why he is barely able to pay himself a wage. Mark has asked you to help him figure out what he is doing wrong.

The services provided at each party vary. Some customers only want a clown to perform and they handle the other party details themselves. Other customers want a full package – food, cake, entertainment, cleanup, party favours, decorations, and costumes for the kids. Mark has identified the following services that can be provided at a party.

• Clown: most, if not all, parties include a clown who performs for one hour at the party. Mark pays the clown $40 for each party.
• Food (excluding cake): when customers order food for their party through Giggles, Mark outsources this service to Carl’s Catering. Carl charges an average of $12 per child for food.
• Cake: Mark orders birthday cakes through his sister, Sarah, who has a small bakery and makes custom cakes for Giggles. Her smallest cake is 8” (which will serve up to 10 kids) and costs $40. She also makes a 10” cake for $60 (which serves 20 kids).
• Cleanup: Giggles also provides cleanup service. Cleaning staff are paid $15 per hour. Cleanup averages 2 hours per 20 kids.
• Party favours: Party favours can also be ordered through Giggles. These cost $5 per bag to assemble.
• Decorations: Giggles will also fully decorate a party. Decorating staff are paid $15 per hour and take one hour to decorate a party for 20 kids. Decorations cost an average of $50 for party of 20 kids.
• Costumes: Giggles also provides costumes for parties so the kids can dress up in a theme. On average, costumes cost $40 each and can be worn 25 times before needed to be replaced. Costumes are cleaned after every party at a cost of $5 each.  

Mark has set up a fee schedule for each service as follows:

During the two weeks, Mark catered 6 parties. Some details of the parties are shown below:

REQUIRED:

Calculate the customer-level operating income for each customer by preparing a customer profitability analysis. Rank the customers according to profitability.

The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Andreas Ltd for the year ended 30 June 2020, amounted to $85 000, including the following revenue and expense items:

The statement of financial position of the company at 30 June 2020 showed the following net assets.

Additional information

(a) Accumulated depreciation of plant for tax purposes was $30 000 at 30 June 2019, and depreciation for tax purposes for the year ended 30 June 2020 amounted to $ 6 500.

(b) The tax rate is 30%.

Required(show all workings):

Prepare a current tax worksheet and the journal entry to recognise the company’s current tax liability as at 30 June 2020.

Denison Corp. is a publicly traded company and is currently preparing its financial statements for its 20X7 year ended. Denison’s accounting income before tax is $1,800,000. The following items have been recorded in accounting income as an expense or revenue item, as appropriate: Depreciation and amortization expense $1,420,000 Dividend revenue from a taxable Canadian corporation $450,000 Fines for polluting the environment $90,000 Gain on sale of equipment $310,000 Life insurance premium expense $25,000 Meals and entertainment expense $390,000 Warranty expense $680,000 Additional information:

1. At December 31, 20X6, the net book value of the equipment was $9,700,000. During 20X7, new equipment additions totalled $450,000.

2. At December 31, 20X6, the undepreciated capital cost of the equipment was $7,400,000.

3. At December 31, 20X6, the warranty payable was $850,000.

4. During 20X7, the company sold equipment for net proceeds of $1,450,000, which had a net book value of $1,140,000 and an original cost of $2,100,000.

5. During 20X7, development costs of $520,000 were capitalized, which is the outstanding balance at December 31, 20X7. These costs are fully deductible for tax purposes.

6. In 20X7, Denison paid warranty costs of $720,000.

7. Capital cost allowance for 20X7 is $1,130,000.

8. During 20X7, Denison paid $140,000 in income tax instalments. These were debited to an income tax instalment account.

9. On July 1, 20X7, the government announced that the tax rate was increasing from 28% to 30% effective January 1, 20X8.

Required:

a) Calculate the deferred tax account balance as at December 31, 20X6.

b) Calculate the deferred tax account balance as at December 31, 20X7, the current tax expense for the year ended December 31, 20X7, and the deferred income tax expense for the year ended December 31, 20X7.

c) Prepare the journal entries to record the current and deferred income tax expense for 20X7.

For a monopolist:

Price is greater than marginal revenue.

Marginal revenue equals zero.

Marginal cost equals zero.

Average total cost equals marginal cost.

1. Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (π), and marginal profit (Mπ) in the following table:

Graph the firm’s demand curve and marginal revenue curve.

Graph the firm’s total cost curve, total revenue curve, and total profit curve.

Cash Received before Revenue is Earned (Deferred Revenue)

1) The Insurance Company in (1) above received the cash paid by Nordstrom. What is the entry to record on the books of the Insurance Company?

Entry on the books of the Insurance Company

2) The Insurance Company provides protection for the next 12 months. What is the entry on a monthly basis?

3) On March 1, a friend gives you a $100 Nordstrom gift card. How does Nordstrom record this entry?4) You redeem your gift card. How does Nordstrom record this entry on March 31?

Expense Incurred before Cash is Paid (Accrued Liability/Accrued Expense)

1) Nordstrom pays a total of $280,000 in wages every other Friday. What is the journal entry on June 14th?

2) Nordstrom owes employees’ wages for the last two days of June and must recognize an expense for the wages earned by employees for those days. Assume the store is open seven days a week and the daily cost is 1/14th of the biweekly amount of $280,000 or 20,000. What is the entry to adjust the records for the last two days of the month (June)?

3) Using information obtained from (1) and (2) above. What entry will be made on the next payday (July 12)?

4) Assume Granger Company takes out a 9%, 90-day, $20,000 loan with its bank on March 1. Granger will repay the principal and interest on May 30. What is the entry on Granger’s books?

5) What is the entry to record 1 month of interest at the end of March? April? 6) What is the entry when Granger repays the principal and interest on May 30?

Revenue Earned before Cash is Received (Accrued Asset/Accrued Revenue)

1) Grant Management Company rents warehouse space to tenants. The contract calls for prepayment of rent for six months at a time. Grant allows one tenant to pay $2,500 in monthly rent anytime within the first ten days of the following month. The entry on Grants books at April 30 is?

2) What is the entry when the tenant pays the rent on May 7?

Exercise 2:

1) ABC purchases a 24 month fire insurance policy on January 1 for 54,000? What is the Journal Entry on January 31?

2) On April 1, GHI Corp took out a 12% 120 day, $10,000 loan at its bank. What is the journal entry on April 30?

Complete Table 1 by computing the Total Revenue, Marginal Revenue, Total Cost, and Profit columns, each rounded to two decimal places. The cost of duplicating a video on a DVD and mailing the DVD, the Marginal Cost, is $5.56. (1 point)

Table 1

b. The President wants the GSTCG to provide videos to generate the most possible donations (Total Revenue). What price is the President of the GSTCG favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

c. The Education Outreach Committee wants the GSTCG to provide videos to the most possible number of people. What price is the Educational Outreach Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

d. The Treasurer of the GSTCG wants the DVD program to be as efficient as possible so that the marginal revenue equals marginal cost. What price is the Treasurer favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

e. The Fundraising Committee wants the DVD program to generate as much profit in donations as possible. What price is the Fundraising Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers. (1 point)

1. A 345-room hotel’s food and beverage department recorded food revenue of $3,460,397.5 and beverage revenue of $1,483,027.5. The cost of sales was 27.3% of F & B revenue, and the departmental expenses were 43.2% of F & B revenue. What is the gross profit percentage for the hotel’s F&B department?

2.

Determine the Profit Margin if the Gross Room Rate increases by 15% in year 2.

In dollar and percentage terms, how much did Net Profit increase in year 2?

In absolute and relative terms, how much did profit margin increase in year 2?

What would the Gross Room Rate need to be if a Profit Margin of 50% is required?

1. What percentage of UnitedHealths Group revenue comes from domestic and international sales and discuss why revenue is strong in the specific region? Discuss if the corporation has a competitive advantage.
2. Discuss the impact the fluctuating dollar has on UnitedHealth Groups' profits for the last twelve months. Use a graph to illustrate the fluctuations against the foreign currency
3. Discuss how UnitedHealth Groups manage its exposure to foreign exchange rate risk?
4. Discuss the types of foreign exchange exposures

How can TV Networks and Broadway

plays use revenue management?

"Revenue management is an extremely important concept within the hospitality industry, because it allows hotel owners to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results"