Please very important to explain all the transactions answers

Chapter 12 Monte Carlo Simulation and Risk Analysis

3. A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is given below. The demands are all assumed to be normally distributed.

Seating Zone    Seats available Ticket price    Mean Demand    Standard Deviation

First Level Sideline    15,000    $100.00 14,500 750

Second Level    5,000 $90.00    4,750    500

First Level End Zone    10,000    $80.00    9,000 1250

Third Level Sideline 21000 $70.00 17,000 2500

Third Level End Zone    14000 $60.00 8,000 3000

Determine the distribution of total revenue under these assumptions using an Excel data table with 50 simulated trials. Summarize your results with a histogram.

Sales Variances

Foote Corporation produces and sells two lines of shoes: Runner and Dress shoes.

The ACTUAL results for 2017 were:

                                                                 Runner            Dress Shoes

Sales Volume (units)                                225,000               95,000

Sales Revenue                                         $ 7,042,500          $5,795,000

Total Variable cost                                   2,902,500             3,192,000

The BUDGET results for 2017 were:

                                                                 Runner            Dress Shoes

Sales Volume (units)                                280,000               70,000

Sales Revenue                                         $ 9,100,000          $4,025,000

Total Variable cost                                   3,248,000             2,247,000

Additional Information

Market size(units):                                Runner                 Dress Shoes

2017 Actual                                        1,325,000                175,000

2017 Budget                                       1,530,000                220,000

Required:

1) Calculate the following (DON’T FORGET TO CALCULATE THE CM/U)

       a) Sales Price Variance    b) Sales Volume Variance

       c)Sales Mix Variance       d) Sales Quantity Variance

       e) Market Share Variance

2)Based on your calculations above, provide a brief comment detailing success (improvement or gain) and one failure(loss or miss) the sales team experienced in 2017 (5Markes)

You manage a local tex-mex restaurant called “Garage Taco Bar.” You have recently switched all of your business to takeout due to the pandemic and you want to make sure you are still making enough money to stay open. The owner says that to keep everything running you need to be making more than $3,000 per day in takeout orders. Looking back on your records you take a random sample of 8 days and determine the following sample statistics. Assume the daily revenue is approximately normal.

Garage Taco Bar daily revenue: x1=$3,103, s1=$154

You decide you should run a hypothesis test to determine if you should stay open.

a. Define the hypotheses for this test. Is this a one-tailed or two-tailed test? If one-tailed, is it upper- or lower-tailed?

b. Give a rejection region for this test based on an α=0.05 significance level.

c. Solve for the test statistic and interpret the results of the test.

Management discovers that a supervisor at one of their restaurant locations removes excess cash and resets sales totals throughout the day on the point of sale (POS) system. At closing the supervisor deposits cash equal to the recorded sales on the POS system and keeps the rest. The supervisor forwards the close-of-day POS reports from the POS system along with a copy of the bank deposit slip to the company’s revenue accounting department. The revenue accounting department records the sales and the cash for the location in the general ledger and verifies the deposit slip to the bank statement. Any differences between sales and deposits are recorded in an over/short account and, if necessary, followed up with the location supervisor. The customer food order checks are serially numbered, and it is the supervisor’s responsibility to see that they are accounted for at the end of each day. Customer checks and the transaction journal tapes from the POS system are kept by the supervisor for one week at the location and then destroyed.

1. What control procedures in the above case allowed the fraud to occur?

2. What audit procedures would have detected the fraud?

Principal Skinner Company produces gourmet cheeses. Selected results from the most current year were as follows:

                             Sales revenue                               $3,500,000

                             Operating income                           560,000

                             Assets 1/1                                     5,000,000

                             Assets 12/31                                5,800,000

                             Current liabilities 12/31               925,000

                             Long-term Liabilities 12/31      3,050,000

Production manager Marge Simpson is considering investing in the purchase of a new fermenting station that will increase the plant’s production capacity. Based on her research, Marge thinks the station would cost $2,200,000 and would increase sales revenue by $1,750,000 and operating income by $450,000.

Required

1. Calculate Principal Skinner’s current sales margin, asset turnover, and return on investment.
2. Calculate Principal Skinner’s sales margin, asset turnover, and return on investment assuming the company purchases the new fermenting station.
3. Assume Marge Simpson’s annual bonus is based on the company’s return on investment. Will Marge support the purchase of the new fermenting station? Why or why not?

The sales of certain products in three cities are given in the 4 by 3 matrix below. City 1 City 2 City 3

Tablets 61 68 37

Laptop Computers 51 66 39

Cell Phones 58 77 65

Personal DVR 38 76 40

The cost of the items depend if they were sold "Retail" or "Wholesale". The Retail costs were: $182 for tablets, $301 for laptops, $434 for cell phones, and $1,657 for DVRs. The Wholesale costs were: $349 for tablets, $425 for laptops, $161 for cell phones, and $1,657 for DVRs. To get the total revenue at each city for Retail and Wholesale, we would need to put the information above (on retail and wholesale costs) into a matrix that has rows and columns and multiply it by the 4 by 3 matrix on sales at each city for each item. After multiplying these two matrices, we would have a matrix that has rows and columns. The total wholesale revenue from city 2 would be in row and column

Colah Company purchased $1.9 million of Jackson, Inc., 7% bonds at par on July 1, 2018, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2018, the Jackson bonds had a fair value of $2.19 million. Colah sold the Jackson bonds on July 1, 2019 for $1,710,000. The purchase of the Jackson bonds on July 1. Interest revenue for the last half of 2018. Any year-end 2018 adjusting entries. Interest revenue for the first half of 2019. Any entries necessary upon sale of the Jackson bonds on July 1, 2019, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale.

Required: 1. Prepare Colah’s journal entries for above transaction.

2. Fill out the following table to show the effect of the Jackson bonds on Colah’s net income, other comprehensive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019.

1. Consider a monopolist with a fixed cost of 500 and MC = 10 per unit. Demand in the market is P = 110 − q.

a. If the monopolist charges a linear price (the same price to all consumers) what is its price, quantity and profit? What is the DWL?

b. If the demand curve represents the demand for an individual consumer, if the monopolist can engage in first-degree price discrimination, what is the two-part tariff it charges? What is the resulting DWL?

c. Now again reconsider the monopolist charges a linear price (no price discrim- ination). The government decides to impose a per-unit tax of $20. What is the resulting output and price the consumers pay? What is the monopolist’s profit now that there is the tax imposed in the industry, and what is the DWL? Explain your answer, relative to part a. What is the tax revenue generated?

d. Can you suggest an alternative way the government can raise the same tax revenue in which there is less DWL than in part (c)?

1. A.)What price will be charged by this firm (in the short-run) B.)What quantity will be sold by this firm in the short-run? C.) What profit will be earned by this firm (in the short-run) at that price and output?
2. Given #1 above, what happens in the long-run? Will the final price be higher or lower than what you found above? Assume that the costs remain the same and remember that this is a monopolistically competitive industry.
3. Given #2 above, what would happen if costs increase? In other words, if we’re at long-run equilibrium, and the minimum wage rises to $20/hr, what will happen to the price in the long-run? (increase/decrease/uncertain)

4. Q	Price	Total Cost	Marginal Cost	Total Revenue	Marginal Revenue	Avg Total Cost
   0	12	0	---------------------		-----------------
   1	11	5
   2	10	8
   3	9	11
   4	8	16
   5	7	25
   6	6	36
   7	5	49
   8	4	64
   9	3	81
   10	2	100

Events Income Statement Balance Sheet While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to prepaid insurance. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustments relating to the depreciation of plant assets. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to unearned revenue. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to an accrued expense. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to an accrued revenue. The failure to post the related adjusting entry will cause the following misstatements: Slide 17 Slide 17 17of18