Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.75 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $349,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $142.50 (600 square feet @ $23.75 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $366,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 52-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $135.00 (600 square feet @ $22.50 per hundred square feet). Calculate the customer margin earned on this job.

Hello. Please answer all my all questions.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $351,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch—a 51-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $95.80 (400 square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.70 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $353,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 59-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $47.40 (200 square feet @ $23.70 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 7,500 hundred square feet Travel to jobs Miles driven 394,000 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $363,000 which includes the following costs: Wages $ 138,000 Cleaning supplies 28,000 Cleaning equipment depreciation 15,000 Vehicle expenses 40,000 Office expenses 68,000 President’s compensation 74,000 Total cost $ 363,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 77 % 11 % 0 % 12 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 75 % 0 % 0 % 25 % 100 % Vehicle expenses 0 % 84 % 0 % 16 % 100 % Office expenses 0 % 0 % 56 % 44 % 100 % President’s compensation 0 % 0 % 31 % 69 % 100 %

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N ranch—a 53-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N ranch was $188.80 (800 square feet @ $23.60 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.55 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 12,500 hundred square feet Travel to jobs Miles driven 287,500 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable ________________________________________ The total cost of operating the company for the year is $359,000 which includes the following costs: Wages $ 144,000 Cleaning supplies 28,000 Cleaning equipment depreciation 8,000 Vehicle expenses 39,000 Office expenses 59,000 President’s compensation 81,000 Total cost $ 359,000 ________________________________________ Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 73 % 13 % 0 % 14 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 71 % 0 % 0 % 29 % 100 % Vehicle expenses 0 % 81 % 0 % 19 % 100 % Office expenses 0 % 0 % 63 % 37 % 100 % President’s compensation 0 % 0 % 31 % 69 % 100 % ________________________________________ Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 59-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $47.10 (200 square feet @ $23.55 per hundred square feet). Calculate the customer margin earned on this job.

25. The "monopolistic" element of monopolistic competition is due to the fact that

A) the firm has no rivals that produce close substitutes.

B) the firm is large relative to the market.

C) the firm produces on the inelastic portion of its demand curve.

D) the firm, facing a downward sloping demand curve, has some control over price.

26. In the long run, an industry under monopolistic competition is characterized by excess capacity because         

A) each firm tries to take customers away from other firms by offering discounts to sell more units.

B) firms are spending money on advertising and the extra costs must be recovered.

C) each firm overestimates the capacity it needs when it fails to take into consideration how other firms will respond to the output decisions it makes.

D) entry occurs until zero profits are made, which implies that each firm is producing to the left of the minimum point of its average cost curve.

27. A duopoly is an industry                                                                                                 

A) with two types of customers.

B) with two sellers.

C) with multiple product lines.

D) a homogeneous product.

28. “Deadweight” loss occurs if

A) consumers really want a product, but production costs turn out to be higher than expected, and profits turn out to be lower than expected

B) a monopolist charges a price that is equal to marginal cost

C) a monopolist engages in first degree price discrimination

D) none of the above

29. Economic efficiency involves

A) whatever will maximize profits for sellers

B) continuing production as long as consumers value the product at least much as the marginal cost of producing more units

C) stopping production if the demand curve becomes steeper than average fixed costs

D) none of the above

30. Under two-part pricing (but with no price discrimination) with customers who have demands of varying strength, a firm that wishes to maximize profits is advised to

A) establish a cover charge based on the consumer surplus otherwise available to the highest demanders

B) ignore the Golden Rule of cost minimization, but just in this particular case

C) impose a user charge that is somewhat higher than the level of marginal cost

D) none of the above

31. A monopoly will produce the efficient rate of output if it                        

A) engages in perfect price discrimination.

B) engages in no price discrimination

C) engages in third-degree price discrimination.

D) is regulated and average-cost pricing is enforced.

32. Third degree price discrimination                                                                      

A) causes consumer surplus to be eliminated

B) is called third-degree because it works best for firms if products can be resold later on

C) will maximize profits if a firm charges a price in each market segment that equals its marginal cost multiplied by the price elasticity of demand

D) is the most difficult form of price discrimination to implement.

33. Long-run supply is typically more elastic than short-run supply because

A) the law of diminishing returns does not apply to the short run

B) firms can enter or exit the market in the long run

C) capital is fixed in the long run

D) none of the above

34. According to the “Golden Rule” of cost minimization;

A) if one input has a lower marginal product than another, it should not be employed

B) if one input costs more per hour than another, it should not be employed

C) inputs should be employed such that the ratio of their respective prices equals the ratio of their respective marginal products

D) none of the above

35. Under two-part pricing

A) profits are maximized by setting a user charge at a monopoly level

B) profits are maximized by establishing a set-up charge to capture consumer surplus that would have otherwise remained

C) profits are maximized by having the sum of the user charge and the set-up charge be as high as possible

D) none of the above

36. Some consumer surplus remains under each of the following EXCEPT                       

A) two-part pricing with multiple consumers

B) third-degree price discrimination

C) first-degree price discrimination

D) block pricing

37. In the case of an increasing cost industry in which consumer demand has decreased

A) the final, long run price will be higher than the price at the very beginning

B) the final, long run price will be lower than the price that first emerges in the short run after the decrease in demand, but in the short-run the price will become higher than the price at the very beginning

C) cost curves shift downward in the long run as firms exit the industry

D) none of the above

38. Which of the following would contribute to the emergence of an industry characterized by oligopoly?

A) the level of production consistent with minimum efficient scale is very small in comparison to the size of the overall market

B) barriers to entry that most firms would have difficulty overcoming

C) anti-trust laws that prevent most mergers

D) none of the above

39. When a profit-maximizing monopolist sells output in two distinct markets, which of the following is true?

A) Price will be higher in the market in which demand is unit-elastic.

B) Price will be lower in the market with the more elastic demand

C) Price will be equal in each market, as long as there is a constant marginal cost.

D) Price will be lower in the market for which there are fewer substitute goods.

40. With intertemporal price discrimination                                                               

A) each consumer is charged his/her full willingness to pay.

B) groups are charged different prices in accordance with the principles of third-degree price discrimination

C) monopolists capture all the consumer surplus.

D) Both A and C are true.

Anne and Ben are bargaining over how to split the value of a joint venture. Initially the joint venture has a value $100. Bargaining takes place as an alternating offers bargaining game. Ben gets to make two offers for every one that Anne makes. An offer by Ben is simply a suggestion of how much value should go to him and the remainder of the joint venture value will then go to Anne. If an offer is rejected, the bargaining game moves on to the next period. For each period that passes the value of the joint venture is reduced by $1. Hence, in the first period Anne and Ben are bargaining over $100. If they fail to reach agreement they will in period 2 be bargaining over $99, etc. The bargaining potentially goes on until there is nothing left to bargain over. If Anne and Ben fail to reach agreement, they each get a payoff of zero. Ben makes the first offer. If it is rejected, he makes an offer again in round 2. If that is rejected, Anne makes an offer in round 3. If rejected Ben makes an offer in round 4, and so on. Thus, Anne makes offers in rounds 3, 6, 9, . . . . Ben makes offers in the other rounds.

1) If the parties were to reach the last period of bargaining where there is still a strictly positive value to the venture, who would be making the offer in this period? Consider this period effectively the last period of the alternating offers game.

2) What is the Nash equilibrium of the last period subgame?

3) Using backward induction, what is the subgame perfect Nash equilibrium? Is agreement reached and if so, what is the value of the joint venture upon agreement? What is the agreed upon split?

Anne and Ben are bargaining over how to split the value of a joint venture. Initially the joint venture has a value $100. Bargaining takes place as an alternating offers bargaining game. Ben gets to make two offers for every one that Anne makes. An offer by Ben is simply a suggestion of how much value should go to him and the remainder of the joint venture value will then go to Anne. If an offer is rejected, the bargaining game moves on to the next period. For each period that passes the value of the joint venture is reduced by $1. Hence, in the first period Anne and Ben are bargaining over $100. If they fail to reach agreement they will in period 2 be bargaining over $99, etc. The bargaining potentially goes on until there is nothing left to bargain over. If Anne and Ben fail to reach agreement, they each get a payoff of zero. Ben makes the first offer. If it is rejected, he makes an offer again in round 2. If that is rejected, Anne makes an offer in round 3. If rejected Ben makes an offer in round 4, and so on. Thus, Anne makes offers in rounds 3, 6, 9, . . . . Ben makes offers in the other rounds.

a) If the parties were to reach the last period of bargaining where there is still a strictly positive value to the venture, who would be making the offer in this period? Consider this period effectively the last period of the alternating offers game.

b) What is the Nash equilibrium of the last period subgame?

c) Using backward induction, what is the subgame perfect Nash equilibrium? Is agreement reached and if so, what is the value of the joint venture upon agreement? What is the agreed upon split?

The Jaguar Bank of Indianapolis (JBI) starts operations on January 1, 2020 issuing equity amounting $50. JBI advertises an annual interest of 1% for its savings deposits, paid annually, and free checking accounts (i.e., no maintenance fee). On the first day of operations, JBI receives a total of $500 as checking deposits and $450 as savings deposits. The bank lends $750 for an annual interest rate of 5%. It purchases treasury bonds worth $150 which earns 2% per annum. JBI maintains the required reserve (10% of checking deposit balances) at the Fed and keeps the remaining liquidity in cash reserves. Federal Reserve pays no interest on JBI’s reserve account. Nor does JBI on checking accounts of its customers. JBI’s operational expenses during its first year of operations is $20 and the corporate tax rate is 25%. Shareholders of JBI receive 12% dividends. A customer defaults a loan amounting $250. The bank loses the principal amount as well as the expected interest income but repossess a property maintained as a collateral. The property is auctioned for $200 and $100 of the proceeds are used to purchase treasury bonds. Find the following.

-Primary Reserves = $

-Total Assets = $

-Total Liabilities = $

-Net Worth = $

-Equity Ratio = %

-Interest Income = $

-Net Profit Before Taxes = $

I'm able to solve the questions before the customer defaults.

Primary Reserves = $100

Total Assets= $1000

Total Liabilities= $950

Net Worth= $50

Equity Ratio=5%

But I don't understand how it works when a customer defaults. I would very much appreciate you show the necessary steps. I hope I can understand how it works rather than just copying the answers.