Mohanned decided to start a water theme park in Barka , Oman . He prepared a business plan and submitted it to Bank Muscat to take loan of OMR 5000000 . He submitted documents of his 5 villas to get the loan from bank . After the bank issued loan Mohanned went to Oman chamber of commerce and industry and requested his new theme park named as Ross Island to be legally registered . After checking the documents the ministry registered the theme park as Ross Island LLC . Mohanned had partners who invested in this new business who were shareholders . The tourists who came to his place and the citizens who came to the Ross Island kept increasing . The entry tickets pricing was affordable many visitors came to his park . So Mohanned started Ross Island also in Salalah .

1 ) Is Mohanned an entrepreneur or Intrapreneur ? Define entrepreneur and intrapreneur .

2 ) Mohanned requested OMR 5000000 loan from Bank Muscat . What is this request called in Business Plan ? Define it .

3 ) Write the management team of Ross Island in your own words in two sentences .

4 ) Write the executive summary for Ross Island theme park in your own words in two sentences .

5 ) Write the company description of Ross Island in your own words in two sentences .

6 ) What are the advantages and disadvantages of starting this theme park ?

7 ) Mohanned decides to start one more Ross Island in Salalah . Is this called Market expansion ? Explain it .

8 ) He registered Ross Island as LLC . Define LLC .

9 ) Mohanned submitted documents of his 5 villas . What are these documents called ?

10 ) Do you think that this business will be successful ?

On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

Hy’s is a nationwide hardware and furnishings chain. The manager of the Hy’s Store in Boise is evaluated using ROI. Hy’s headquarters requires an ROI of 8 percent of assets. For the coming year, the manager estimates revenues will be $4,720,000, cost of goods sold will be $2,973,600, and operating expenses for this level of sales will be $472,000. Investment in the store assets throughout the year is $3,440,000 before considering the following proposal.

A representative of Ace Appliances approached the manager about carrying Ace's line of appliances. This line is expected to generate $1,420,000 in sales in the coming year at Hy’s Boise store with a merchandise cost of $1,079,200. Annual operating expenses for this additional merchandise line total $150,000. To carry the line of goods, an inventory investment of $1,020,000 throughout the year is required. Ace is willing to floor-plan the merchandise so that the Hy store will not have to invest in any inventory. The cost of floor planning would be $124,500 per year. Hy’s marginal cost of capital is 8 percent. Ignore taxes.

Required:

a. What is Hy’s Boise store's expected ROI for the coming year if it does not carry Ace's appliances? (Enter "ROI" answer as a percentage rounded to 2 decimal places (i.e., 32.16).)

b. What is the store's expected ROI if the manager invests in Ace's inventory and carries the appliance line? (Enter "ROI" answer as a percentage rounded to 2 decimal places (i.e., 32.16).)

c. What would the store's expected ROI be if the manager elected to take the floor plan option? (Enter "ROI" answer as a percentage rounded to 2 decimal places (i.e., 32.16).)

d. Would the manager prefer (a), (b), or (c) if evaluated using ROI?

e-1. What is Hy’s Boise store's expected EVA for the coming year if it does not carry Ace's appliances?

e-2. What is the store's expected EVA if the manager invests in Ace's inventory and carries the appliance line?

e-3. What would the store's expected EVA be if the manager elected to take the floor plan option?

e-4. Would the manager prefer (a), (b), or (c) if evaluated using EVA?

Case 401

Hotel Front Office Management

Ana Chavarria, front office manager, and Lorraine DeSantes, director of marketing and sales, have just returned from a computer conference at which they were able to look at the latest property management systems for hotels. Ana is enthusiastic about updating and adopting front office applications for reservations, registration, room status, posting, call accounting, checkout, and night audit. Lorraine is sure the marketing and sales applications will help her department be more efficient. Both realize the cost involved in obtaining modules for a property management system. What would you suggest they do prior to discussing this issue with Margaret Chu, general manager of The Times Hotel? Assuming Ms. Chu is willing to consider the purchase of a PMS, how should Ana and Lorraine proceed? Whom should they include in developing a PMS adoption plan, and why? What areas should they investigate?

E10.12 Interfund Transactions

Interfund transfers of the general fund of Timberline County for 2020 were as follows:

1. $2,000,000 advance to the Park Development special revenue fund, to permit initial expenditures under a project to be fully supported by a federal grant.

2. $1,500,000 to the Timberline County Fire Protection District (a special revenue fund) as the county’s contribution to fire and emergency medical service activities for the year.

3. $500,000 from the Roads capital projects fund, unspent proceeds of a bond issue.

4. $3,000,000 to the County Hospital (enterprise fund), as the city’s cost of services provided.

5. $2,900,000 to the Airport Fund (enterprise fund) to temporarily finance the maintenance of runways.

6. $2,000,000 from the Park Development special revenue fund, to repay the advance.

Required

For each of the above interfund transfers, state how the transaction is reported on the general fund’s balance sheet and/or statement of revenues, expenditures, and changes in fund balances.

Most Major airports have separate lots for long-term and short-term parking. The cost to park depends on the lot you select , and how long you stay. Considering this rate structure on the lot you select, and how long you stay. Consider this rate structure from the Salt Lake International Airport during the summer of 2016.

Long-Term (Economy) Parking

-The First Hour is $2.00, and each additional hour or fraction thereof is $1.00

-Daily maximum $9.00

-Weekly maximum $60

Short Term Parking

-The first 30 minutes are $2.00 and each additional 20 minutes or fraction thereof is $1.00

-Daily maximum $32.00

Write a program using matlab that asks the user the following:

-Which lot are you using?

-How many weeks, hours, days, and minutes did you park? Your program should calculate the parking bill.

Find as many programming languages as possible which fit the following categories. When you find a language which fits the category, indicate the following information:

• The name of the language
• The year the language was released
• A sample bit of code to prove that the language belongs to the given category.

For full marks, you must find at least two languages for each category. To make the assignment more interesting, extra points will be awarded to the person who finds the most languages for each category. (That is, extra points are available for each of the categories.)

Categories

1. Languages with a built-in integer data type.
2. Languages with a built-in floating point data type
3. Languages with a built-in decimal data type.
4. Languages with a built-in complex number data type.
5. Languages with a built-in character data type.
6. Languages with a built-in mutable string data type.

Overbooking is the practice of selling more items than are currently available. Overbooking is common in the travel industry; it allows a vehicle (airline, train, bus, cruise ship, hotel, and so forth) to operate at or near capacity, despite cancellations, no-shows, or late arrivals.

Overselling is when more confirmed customers show up to use the vehicle than there is space available. When this happens, at least one customer will be denied the service that they paid for, either voluntarily (sometimes with an incentive provided by the supplier) or involuntarily. This is called getting "bumped."

Suppose that for a particular flight, an airline believes that 1% of ticket holders do not make the flight. The jet making the trip holds 188 passengers. If the airline sells 191 tickets, what is the probability that the flight will be oversold and they will have to bump a passenger? Assume that cancellations are independent.

Calculate the probabilities that one, two, and three people will be bumped, and then use those values to determine the probability that at least one passenger will be bumped. Give each answer to four decimal places. Avoid rounding within calculations.

?(one person is bumped)=

?(two people are bumped)=

?(three people are bumped)=

?(at least one person is bumped)=

1. Who is Tommy Saleh, what is his job title and duties and what type of hotel does he work for?

2. What event did he have to analyze to determine if his company should go forward with it? Summarize the process he and his company went through to make their decision on whether or not to hold the event.

• Tommy Saleh has the type of job that a lot of people probably dream of.
• He is paid to make sure his organization, the Tribeca Grand
• Hotel in New York City, remains on the cutting edge of cool.
• Whether that means hosting an informal concert in the lobby
• with the Kings of Leon, or helping to host the Tribeca
• Film Festival in their basement screening room, Tommy gets
• paid to keep his finger on the pulse of current culture.
• Budgetary planning plays a significant role in Tommy's job,
• and he is evaluated in part by how he controls costs.
• Each year, the planning process for the company's
• annual budget normally begins in the 4th quarter.
• Saleh: We probably meet around the end of September, and
• we involve the CFO, the COO, and the general managers.
• Narrator: The master budget covers all aspects of
• running the hotel, but Tommy's events budget is
• particularly significant, because, let's face it,
• there are lots of cool hotels in New York City.
• Clients choose to stay at the Tribeca knowing that Tommy's planners, event specialists and
• his concierge team are plugged into not just New York City, but the larger world stage.
• As Tommy plans and implements his events budget, the key is to maintain budgetary
• control, including budget reports that compare planned objectives with actual results.
• A budget can cover any length of time and any purpose,
• so formalized reporting systems help by identifying
• the name of the budget report, the frequency of the
• report, the purpose, and the primary recipients.
• Let's look at an example of budgetary control
• activities, and, for this, let's go back to 2002,
• when the Tribeca Film Festival was created to combat
• the economic effect of 9/11 on lower Manhattan.
• Saleh: The Tribeca Film Festival started with Robert
• DeNiro's idea of bringing something to the downtown area.
• Narrator: The hotel had to develop a budget for events they would host.
• Then, after the festival, they analyzed what they planned
• from what was actually spent, and took corrective action.
• They increased the budget for the following year—it was
• a big success—and modified future plans accordingly.
• This cycle of control activities can be used over and over, and, when
• implemented properly, can help management to evaluate performance.
• Now, if Tommy was responsible for just one hotel event
• each year, he could probably get by with a static budget.
• But he has many events, some of which occur on
• short notice, so he relies on a flexible budget,
• which is really just a series of static budgets
• that account for a wide variety of activities.
• The basic idea behind responsibility accounting is
• that large, diversified organizations, especially
• those with multiple product lines, are difficult,
• if not impossible, to manage as a single segment.
• Breaking them up into smaller segments allows responsibility to be assigned to
• managers that have the authority to make day-to-day decisions at that level.
• Evaluating a manager whose performance can be quantified,
• like a sales manager, is fairly straightforward.
• But what about someone who contributes indirectly
• to the profitability of an organization? To answer this, it's important to
• understand profit and cost centers. Profit centers in an organization do exactly
• what they sound like: they generate profits.
• Hotel profit centers are typically sleeping rooms,
• events, restaurants, and catered food functions.
• Saleh: The rooms are the main income for the hotel.
• Food and beverage is not an amenity here, only it's actually another source of revenue,
• where people want to try the shop that you have, or expect 24-hour room service.
• Narrator: Cost centers incur costs but don't directly generate revenue, but you need them.
• In a hotel, they might be marketing, engineering,
• human resources, and, yes, accounting. Okay now, let's have some fun.
• Let's take everything we've learned and apply it to a real world example.
• We mentioned the time that the Kings of Leon were staying at the Tribeca.
• Saleh: And they go, "Why don't you just put a secret gig for the, um, for our fans?"
• Narrator: Now, Tommy didn't have a "Kings of Leon secret
• gig” budget, on the off-chance that they ever showed up at
• his hotel, but since he made use of flexible budgets, he was
• ready, and had a basic idea of what his costs would be.
• Saleh: One of those projections was based upon what
• would the total night cost us when we do it from a to z.
• Narrator: Including everything from building a temporary sound system,
• to hiring doormen, and even bathroom attendants.
• Keep in mind that some of these budget items are a result
• of valuable lessons from past budgetary control activities.
• Armed with this budget, he did a quick ROI evaluation
• to determine if the event would be profitable. In the end, the event
• was a huge success. But from a profit/cost center perspective,
• what if it had been slightly unprofitable? From a marketing standpoint, there
• certainly were other benefits. Saleh: It's good
• promotion for the hotel. It's great press for the hotel.
• Narrator: So, maybe you compensate by canceling another event
• later in the year that wouldn't have had the same impact.
• The point being, budgetary control allows managers like Tommy to not only
• do their job, but to take advantage of opportunities when they arise.
• And from a responsibility accounting perspective, this has served Tommy well.
• Sure, his events help drive profits, but what they
• really do, in an industry where boutique hotels
• come and go, is to help keep the Tribeca Grand both
• relevant and hip as a key Manhattan destination.

Hotel Fawlty Towers is (as expected) not doing so well. In total, there are fixed joint costs of 4,800,000 (converted to SEK) per year. On average, you have separate income (= sales price) of SEK 1200 per guest per night. The special cost for each guest and night is 180 SEK. In total, there are 3100 overnight guests per year but a capacity of 6500 per year. The worst is during the weekends where you only have 120 overnight guests per year (included in the 3100 guests per year). Now the hotel owner, Basil, has been on a course in Revenue Management and learned there that you should put a lower price on the weekends to fill the hotel better. Together with the regular guest and strategist Major Gowen, Basil estimates that if the price per guest and night is set to SEK 700, the number of overnight stays at weekends will increase to 350 per year and if the price is set to SEK 500, the number of overnight stays at weekends will be a total of 800 per year. The price during other days does not change, nor the number of guests.

SEK = Swedish kronor. Although hotels and people are taken from the English series "Pang in the building", we are based on Swedish conditions regarding VAT rate and currency.

a)Should you lower the price on weekends? If so to SEK 700 or SEK 500? Show total results for the different options and compare with not lowering the weekend price! (6p)

b) In order to obtain additional revenue, you plan to sell various small items at the reception. Basil has heard that the gross profit margin for these goods should be 60%. What then is the selling price of a toothbrush the hotel buys for 8,00 SEK? Don't forget to add VAT with a 25% surcharge!