Flaming Foliage Sky Tours is a small sightseeing tour company in New Hampshire. The firm specializes in aerial tours of the New England countryside during September and October, when the fall color is at its peak. Until recently, the company had not had an accounting department. Routine bookkeeping tasks, such as billing, had been handled by an individual who had little formal training in accounting. As the business began to grow, however, the owner recognized the need for more formal accounting procedures. Jacqueline Frost has recently been hired as the new controller, and she will have the authority to hire an assistant.

During her first week on the job, Frost was given the following performance report. The report was prepared by Red Leif, the company’s manager of aircraft operations, who was planning to present it to the owner the next morning. “Look at these favorable variances for fuel and so forth,” Leif pointed out, as he showed the report to Frost. “My operations people are really doing a great job.” Later that day, Frost looked at the performance report more carefully. She immediately realized that it was improperly prepared and would be misleading to the company’s owner.

Required:

1. Prepare a columnar flexible budget for Flaming Foliage Sky Tours’ expenses, using air miles as the cost driver at the following activity levels: 39,000 air miles, 41,000 air miles, and 44,000 air miles.

Prepare a columnar flexible budget for Flaming Foliage Sky Tours’ expenses, using air miles as the cost driver at the following activity levels: 39,000 air miles, 41,000 air miles, and 44,000 air miles.

In spite of several favorable expense variances shown on the report above, the company’s September operating income was only about two-thirds of the expected level. Identify some of the possible reasons.

Prepare a revised expense variance report for September, which is based on the flexible budget prepared in part (1).(Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "per air mile" answers to 2 decimal places.)

Jacqueline Frost presented the revised expense report to Leif along with the memo explaining why the original performance report was misleading. Leif did not take it well. He complained of Frost’s “interference” and pointed out that the company had been doing just fine without her. “I’m taking my report to the owner tomorrow,” Leif insisted. “Yours just makes us look bad.” What are Frost’s ethical obligations in this matter? (Select which of the following statements (is) are true by selecting an "X".)

If pizza is a normal good, then which of the following could be the value of income elasticity of demand? • 0.2 • 0.8 • 1.4 • All of the above

Superior Air Flights is considering the purchase of a helicopter to connect service between its base airport and a new field being built about 30 miles away. The choppers are assumed to be needed for only 6 years until a rapid transit service is completed. Estimates of the two craft under consideration are as follows:

Which option is cheaper per year and by how much? Use an interest rate of 10%. Also, what is the cost per mile if the copper flies 150 times between its base airport and new field per year. Show all work.

1. In general, the marginal cost (MC) curve is U-shaped as you learned in the lectures and the textbook. However, exception exists. Please provide at least one industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC in the industry.

2. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car. In your opinion, is energy efficiency the same thing as economic efficiency? Please explain your opinion and state whether you support it or not.

Please answer all of the two questions by one paragraph for each

1. In general, the marginal cost (MC) curve is U-shaped as you learned in the lectures and the textbook. However, exception exists. Please provide at least one industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC in the industry.

2. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car. In your opinion, is energy efficiency the same thing as economic efficiency? Please explain your opinion and state whether you support it or not.

Please answer all of the two questions by one paragraph for each.

*please show the work

*please show the work

A four-lane freeway (two lanes in each direction) operates at capacity during the peak hour. It has 11-ft lanes, 4-ft shoulders, and there are 3 ramps within 3 miles upstream of the segment midpoint and 4 ramps within 3 miles downstream of the segment midpoint. The freeway is on rolling terrain and has 8% heavy vehicles with a peak-hour factor of 0.85. It is know that 12% of the AADT occurs in the peak hour and that the directional factor is 0.6. What is the freeway’s AADT?

Featured below are data on fuel economy (in miles/gallon) for a random sample of 12 mid-size cars.

X: {25.8, 20.2, 28.7, 24.6, 19.5, 33.1, 30.5, 27.7, 28.4, 30.9, 22.3, 24.2}

Construct a 95% confidence interval for the true mean fuel economy

Conduct a test to determine whether the true mean is higher than 25.0 miles/ gallon.

The null and alternative hypothesis

The test statistic

The p-value of the test,

Your decision and the interpretation in the context of the problem.