Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically:

• MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for $250K. These amounts represent MM’s charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each functions independently of the other offerings.

• If a customer purchases all aforementioned items together, the total amount owed to MM is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at midpoint, 25 percent at completion).

• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K payable to MM.

Stone, a customer, approach MM with the hopes of reinventing its image to a younger customer base. Stone has a verbal agreement with MM that is based on MM’s unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page for total consideration of $1.5M and payment terms noted above. The agreement creates enforceable rights and obligations pursuant to MM’s customary business practices. None of these items can be redirected by MM to another customer. MM performed a credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date if Stone cancels the contract with MM for reasons other than MM’s failure to perform under the contract as promised.

Stone makes a payment on November 30, 20X5, in the amount of $750K (50% of total consideration of $1.5M) pursuant to the agreement. From the date of the quote, it takes MM six months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly accept newly developed technology. On the basis of its experience with similar technology, MM has determined that it takes over three months for Stone’s users to begin to download its apps.

Required

MM’s CFO is trying to understand the new revenue recognition model and has asked you to explain how MM would account for the above scenario under the new standard.

1. How should MM account for the above offering with Stone under the new revenue recognition model?

2. How would your conclusions change if:

   a. The app sold to Stone is actually downloaded more than 500K times in the first month? b. MM believed at the outset that there is about a 75 percent chance that the app will be downloaded more than 500K times and it is probable that there will not be a significant reversal of revenue?

Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing
offerings to its customers. Specifically:
• MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook
page for $250K. These amounts represent MM’s charges for these items when MM sells
them separately to customers. The TV commercial, the app, and the Facebook page are
not interrelated; that is, each functions independently of the other offerings.
• If a customer purchases all aforementioned items together, the total amount owed to MM
is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the
remaining 50 percent due over the rest of the development period (25 percent at mid-
point, 25 percent at completion).
• If the app is downloaded 500K times or more in the first month, there is a one-time bonus
of $250K payable to MM.
Stone, a customer, approaches MM with the hopes of reinventing its image to a younger
customer base. Stone has a verbal agreement with MM that is based on MM’s unsigned quote to
Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page for total
consideration of $1.5M and payment terms noted above. The agreement creates enforceable
rights and obligations pursuant to MM’s customary business practices. None of these items can
be redirected by MM to another customer. MM performed a credit check on Stone and has
determined that Stone has the intention and ability to pay MM for fulfilling its portion of the
contract. Stone is required to pay MM for performance completed to date if Stone cancels the
contract with MM for reasons other than MM’s failure to perform under the contract as
promised.
Stone makes a payment on November 30, 20X5, in the amount of $750K (50% of total
consideration of $1.5M) pursuant to the agreement. From the date of the quote, it takes MM six
months to develop and produce the TV commercial, two weeks to complete the Facebook page,
and three months to complete a fully functioning app. MM does not think that the app will be
downloaded 500K times in the first month because Stone’s customer base does not quickly
accept newly developed technology. On the basis of its experience with similar technology, MM
has determined that it takes over three months for Stone’s users to begin to download its apps.
Required
MM’s CFO is trying to understand the new revenue recognition model and has asked you to
explain how MM would account for the above scenario under the new standard.
1. How should MM account for the above offering with Stone under the new revenue
recognition model?
Case 17-7c: Mesmerizing Marketers Page 2
Copyright 2019 Deloitte Development LLC
All Rights Reserved.
2. How would your conclusions change if:
a. The app sold to Stone is actually downloaded more than 500K times in the first
month?
b. MM believed at the outset that there is about a 75 percent chance that the app will
be downloaded more than 500K times and it is probable that there will not be a
significant reversal of revenue?

Copyright 2016 Deloitte Development LLC All Rights Reserved.

Case 17-7 Mesmerizing Marketers

Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically:

• MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for $250K. These amounts represent MM’s charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each functions independently of the other offerings.

• If a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at mid-point, 25 percent at completion).

• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K payable to MM.

Stone, a customer, approaches MM with the hopes of reinventing its image to a younger customer base. Stone has a verbal agreement with MM that is based on MM’s unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page. The agreement creates enforceable rights and obligations pursuant to MM’s customary business practices. None of these items can be redirected by MM to another customer. MM performed a credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date if Stone cancels the contract with MM for reasons other than MM’s failure to perform under the contract as promised.

Stone makes a payment on November 30, 20X5, in the amount of $750K pursuant to the agreement. From the date of the quote, it takes MM six months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly accept newly developed technology. On the basis of its experience with similar technology, MM has determined that it takes over three months for Stone’s users to begin to download its apps.

Required

MM’s CFO is trying to understand the new revenue recognition model and has asked you to explain how MM would account for the above scenario under the new standard.

1. How should MM account for the above offering with Stone under the new revenue recognition model?

2. How would your conclusions change if: a. The app sold to Stone is actually downloaded more than 500K times in the first month?

?

Case 17-7c: Mesmerizing Marketers Page 2

Copyright 2016 Deloitte Development LLC All Rights Reserved.

b. MM believed at the outset that there is about a 75 percent chance that the app will be downloaded more than 500K times and it is probable that there will not be a significant reversal of revenue?

Case 17-7 Mesmerizing Marketers
Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically:
• MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for $250K. These amounts represent MM’s charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each functions independently of the other offerings.
• If a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at mid-point, 25 percent at completion).
• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K payable to MM.
Stone, a customer, approaches MM with the hopes of reinventing its image to a younger customer base. Stone has a verbal agreement with MM that is based on MM’s unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page. The agreement creates enforceable rights and obligations pursuant to MM’s customary business practices. None of these items can be redirected by MM to another customer. MM performed a credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date if Stone cancels the contract with MM for reasons other than MM’s failure to perform under the contract as promised.
Stone makes a payment on November 30, 20X5, in the amount of $750K pursuant to the agreement. From the date of the quote, it takes MM six months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly accept newly developed technology. On the basis of its experience with similar technology, MM has determined that it takes over three months for Stone’s users to begin to download its apps.
Required
MM’s CFO is trying to understand the new revenue recognition model and has asked you to explain how MM would account for the above scenario under the new standard.
1. How should MM account for the above offering with Stone under the new revenue recognition model?
2. How would your conclusions change if:
a. The app sold to Stone is actually downloaded more than 500K times in the first month?
b. MM believed at the outset that there is about a 75 percent chance that the app will
be downloaded more than 500K times and it is probable that there will not be a
significant reversal of revenue?

Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing
offerings to its customers. Specifically:

• MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for $250K. These amounts represent MM’s charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are
not interrelated; that is, each functions independently of the other offerings.

• If a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at mid-point, 25 percent at completion).

• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K payable to MM.

Stone, a customer, approaches MM with the hopes of reinventing its image to a younger
customer base. Stone has a verbal agreement with MM that is based on MM’s unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page. The agreement creates enforceable rights and obligations pursuant to MM’s customary business practices. None of these items can be redirected by MM to another customer. MM performed a
credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date if Stone cancels the contract with MM for reasons other than MM’s failure to perform under the contract as promised.

Stone makes a payment on November 30, 20X5, in the amount of $750K pursuant to the agreement. From the date of the quote, it takes MM six months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly accept newly developed technology. On the basis of its experience with similar technology, MM has determined that it takes over three months for Stone’s users to begin to download its apps.

Required
MM’s CFO is trying to understand the new revenue recognition model and has asked you to explain how MM would account for the above scenario under the new standard.

1. How should MM account for the above offering with Stone under the new revenue
recognition model?

2. How would your conclusions change if:

a. The app sold to Stone is actually downloaded more than 500K times in the first
month?

b. MM believed at the outset that there is about a 75 percent chance that the app will
be downloaded more than 500K times and it is probable that there will not be a
significant reversal of revenue?

In Chapter 6 you learned about revenue recognition as well as evaluating receivable balances and establishing an allowance for bad debts. Access Starbucks 10-K and answer the following (hint: you will need to explore the first footnote):

10-K link: https://www.sec.gov/Archives/edgar/data/829224/000082922414000041/sbux-9282014x10k.htm#s6571E5A222BF69F5F8068EA40E001FDA

Starbucks has provided detail for 3 categories of net revenue shown on the income statement. List each category and provide a brief summary of each category, including information such as (but not limited to): the amount of revenue in the category for the most recent year, description of revenue stream, when revenue is recognized, how it is recognized (net of what type of items) etc.

SCM 366

Revenue Management Assignment II

II. San Francisco Express Airlines, SaFE for short, flies from PHL to SFO. On a Thursday evening flight, the number of last-minute no-shows and cancellations is Poisson distributed with mean 7.5. SaFE has an unlimited number of low fare travelers who pay $300. The cost of bumping such a passenger is estimated to be $350 (due lost goodwill as well as the cost of routing their itinerary through other airlines).   SaFE offers this low fare because it also comes with a cancellation/rebooking fee of $150 – if a customer doesn’t show up for the flight or cancels her reservation, she must pay $150 to use the ticket on another flight.

To maximize revenue from this flight, how many seats should the airline overbook?

Customers are more reliable on the Friday evening flight. On that flight, the average number of no-shows and cancellations is Poisson with mean 4.5. Suppose SaFE overbooks that flight by 6 seats. What is the probability that at least 1 passenger will be bumped from this flight?

PLEASE ANSWER IT IN EXCEL SHEET WITH EXPLANATION

Problem 1: How much time do Americans living in or near cities spend waiting in traffic, and how much does waiting in traffic cost them per year? The file Congestion includes this cost for 31 cities. (Source: Data extracted from “The high Cost of Congestion,” Time, October 17, 2011, p.18.)

1. a) Compute the mean, median, first quartile, and third quartile.

2. b) Compute the range, interquartile range, variance, and standard deviation.

3. c) Compute the covariance between the time spent sitting in traffic and the cost of sitting in

   traffic.

4. d) Computethecorrelationbetweenthetimespentsittingintrafficandthecostofsittingin

   traffic.

5. e) Based on the results of (a) through (d), what conclusions might you reach concerning the

   time spent waiting in traffic and the cost of waiting in traffic?

6. f) Create a histogram for each of the two variables: the time Americans living in or near cities

   spend waiting in traffic and the cost of waiting per year.

7. g) Create a scatter plot for the two variables and fit a straight line to the points. Show the

   equation of the fitted line.

I'm not sure if this is a good issue statement for short case study. Thanks for the help!

An American multinational widely diversified media and entertainment organization, Disney Company which started their journey from 1923 are now recognized as one of the most successful enterprise in the century. Bob Iger who has lead the company with his magical, yet fundamental and strong business strategy to overcome the barriers that Disney faced in the last ten years in his career as a newly appointed CEO from 2005. One of the main issues that Disney faced entered from the mass diversification and acquisition while expanding their business firms into three main divisions, Walt Disney Parks and Resorts, Disney Media Networks, and Disney Consumer Products and Interactive Media. The main issue in this process was the inability to maintain a neutral and open behavior and lack of communication in team based works. Two external environmental factors involved in diversification process are analyzed in the report; political as in dealing with local government where Disney expands their theme park in other countries and technological factors that is required to produce content that satisfies customer demand as well as producing high quality content. Understanding these issues and implementing preventative tools will seize the misleading of the company for the next ten years. Other possible issues and external environment factors are considered as out of scope in this report.

74-year-old widower, excellent pension, $500,000, long-term care insurance, no debt, and three children. In no more than 200 words:

1. Develop an investment portfolio that meets their needs, specifying the categories of securities or other assets types.