Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000.

i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group?

ii. How much will the profit for AG Travel and Tour be?

iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product?

iv. What will be the profit for AG Travel and Tour in the case of (iii) above?

v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge?

vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above?

Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000. i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group ii. How much will the profit for AG Travel and Tour be? iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product iv. What will be the profit for AG Travel and Tour in the case of (iii) above v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge? vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above

Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of (iii) above?

v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above?

2. The Cahora Bassa dam, located in Mozambique, is the highest dam in Africa. The hydroelectric facility within the dam generates an average 1,925 MWe. Nearly all of this electricity is exported to South Africa. The power station is linked to Pretoria, 1,420 km away, by a 533.0 kV high-voltage DC (HVDC) transmission line. a. The transmission line consists of eight cables made of aluminum with a steel core for strength and structural support. The total cross-sectional diameter of each cable is 28 mm, while the cross-sectional diameter of the steel core is 14 mm (consider the cross-sectional area as a steel circle in the middle of an an aluminum circle). Treat each cable as if it consisted of one steel and one aluminum resistor arranged in parallel, while the cables themselves are arranged in parallel with each other. What is the total resistance of the transmission line? Material resistivities:

ρ_steel=7.2〖*10〗^(-7) Ω•m

ρ_alum=2.7*10^(-8) Ω•m.

(15 points)

b. On average, how much current flows through the transmission lines? What is the power loss in the line? What is the percentage of power loss relative to the average power generated? (10 points)

c. If the power were transmitted at 333.0 kV over the same cables, what would the power loss percentage be? (10 points)

d. If the dam’s power is sold wholesale to South Africa for US$90.00/MWh, how much revenue would be lost per year, transmitting at 333.0 kV instead of 533.0 kV? (note: the 1,920 MW average production already accounts for the dam’s capacity factor) (5 points)

e. Say you are interested in doing a life cycle assessment to estimate the amount of energy used to build the Cahora Bassa power system, from dam to end user (not the amount energy produced by the system itself). Consider the major parts of the Cahora Bassa power system, from the dam, to the power lines, to the electrical equipment, and everything that was required to manufacture and build them. List ten energy-consuming materials or processes that would be used as inputs in a life-cycle assessment of the construction of this system. (10 points)

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

For each of the following independent situations, calculate the amount(s) required.

Required:

1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $348,600. The variable cost per unit is $0.35. What price does Jefferson charge per unit? Note: Round to the nearest cent.
$

2. Sooner Industries charges a price of $127 and has fixed cost of $360,500. Next year, Sooner expects to sell 19,800 units and make operating income of $198,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

3. Last year, Jasper Company earned operating income of $17,600 with a contribution margin ratio of 0.2. Actual revenue was $220,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required.
$

4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $96,250 and 25,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

For each of the following independent situations, calculate the amount(s) required.

Required:

1. At the break-even point, Jefferson Company sells 95,000 units and has fixed cost of $349,700. The variable cost per unit is $0.15. What price does Jefferson charge per unit? Note: Round to the nearest cent.
$

2. Sooner Industries charges a price of $129 and has fixed cost of $421,000. Next year, Sooner expects to sell 14,400 units and make operating income of $191,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

3. Last year, Jasper Company earned operating income of $22,900 with a contribution margin ratio of 0.25. Actual revenue was $229,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required.
$

4. Laramie Company has variable cost ratio of 0.40. The fixed cost is $90,000 and 30,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

1. Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

   For each of the following independent situations, calculate the amount(s) required.

   Required:

   1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $351,900. The variable cost per unit is $0.30. What price does Jefferson charge per unit? Note: Round to the nearest cent.
   $

   2. Sooner Industries charges a price of $136 and has fixed cost of $391,500. Next year, Sooner expects to sell 15,500 units and make operating income of $175,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

   Variable cost per unit	$
   Contribution margin ratio		%

   3. Last year, Jasper Company earned operating income of $13,320 with a contribution margin ratio of 0.15. Actual revenue was $222,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required.
   $

   4. Laramie Company has variable cost ratio of 0.35. The fixed cost is $135,200 and 26,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

   Price	$
   Variable cost per unit	$
   Contribution margin per unit	$

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

For each of the following independent situations, calculate the amount(s) required.

Required:

1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $346,500. The variable cost per unit is $0.10. What price does Jefferson charge per unit? Note: Round to the nearest cent.

$

2. Sooner Industries charges a price of $98 and has fixed cost of $476,500. Next year, Sooner expects to sell 16,300 units and make operating income of $174,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

3. Last year, Jasper Company earned operating income of $18,400 with a contribution margin ratio of 0.2. Actual revenue was $230,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required.

$

4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $82,500 and 25,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

For each of the following independent situations, calculate the amount(s) required.

Required:

1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $346,800. The variable cost per unit is $0.10. What price does Jefferson charge per unit? Note: Round to the nearest cent.
$

2. Sooner Industries charges a price of $116 and has fixed cost of $395,500. Next year, Sooner expects to sell 16,700 units and make operating income of $179,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

3. Last year, Jasper Company earned operating income of $22,500 with a contribution margin ratio of 0.25. Actual revenue was $225,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required.
$

4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $110,000 and 25,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

For each of the following independent situations, calculate the amount(s) required.

Required:

1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $349,900. The variable cost per unit is $0.20. What price does Jefferson charge per unit? Round to the nearest cent.
$

2. Sooner Industries charges a price of $93 and has fixed cost of $481,500. Next year, Sooner expects to sell 19,300 units and make operating income of $175,000. What is the variable cost per unit? What is the contribution margin ratio? Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

3. Last year, Jasper Company earned operating income of $28,920 with a contribution margin ratio of 0.3. Actual revenue was $241,000. Calculate the total fixed cost. Round your answer to the nearest dollar, if required.
$

4. Laramie Company has variable cost ratio of 0.55. The fixed cost is $102,650 and 21,900 units are sold at breakeven. What is the price? What is the variable cost per unit? The contribution margin per unit? (Round answers to the nearest cent.)