You have joined a northern mail order company selling winter coats. You have the coat sales by quarter for the last three years.

Year 1 Qtr 1, 24 Winter Coats Qtr 2, 12 Qtr 3, 20 Qtr 4, 36 Year 2 Qtr 1, 28 Winter Coats Qtr 2, 10 Qtr 3, 22 Qtr 4, 40 Year 3 Qtr 1, 32 Winter coats Qtr 2, 14 Qtr 3, 27 Qtr 4, 44

Use linear regression to forecast the total coats to be sold in year 4 in thousands. For the equation Y = aX + b give "a".   ____ (two decimals) Give "b" ____ (two decimals)

Give the forecast for the fourth year? ____ (two decimals)Next use the quarters to generate seasonal factors. Give the season factor for quarter one? ____ (two decimals)

Give the season factor for quarter two? _____ (two decimals)Give the season factor for quarter three? _____ (two decimals) Give the season factor for quarter four? ______ (two decimals) Give the forecasted sales for quarter one? ______ (All answers remaining to two decimals) Quarter two? ______Quarter three? ______Quarter four? _____

Founded in 1964 as Clipper Trucking Co., within two
decades Spirit Airlines was chugging through the skies as
a tiny commercial airline connecting passengers between
Florida and the Midwest. Yet by the 2000s, Spirit was
near failure—a common story in the commercial airline
business—until seasoned aviation executive and merciless
cost-cutter Bill Franke stepped in in 2006 to buy the airline
and then did something remarkable. Franke had honed his
chops cutting costs as CEO of America West Airlines in the
1990s and was an early investor in ultra-low cost Ryan Air.
Despite his detractors, Franke, along with his CEO, Ben
Baldanza, put Spirit on a steadier (if frill-free) fl ight path,
making it not only one of the few post-9/11 success stories,
but also a trend-setter and model in a deeply challenged
industry.
While larger carriers have suff ered billions of dollars in
losses and bankruptcies, Spirit was fl ying high last year with
$289 million in earnings, 40 percent more per plane than any
other domestic airline. Th e company is currently valued at
about $1.63 billion, the same as U.S. Airways Group Inc., which
is about nine times larger in terms of traffi c. Despite its tiny
size—Spirit carries just 1 percent of the nation’s fl iers on its
40-jet fl eet—only two U.S. airlines have fared better: Southwest
(with 692 Boeing jets) and Alaska Air Group Inc. (with
122 aircraft). While many airlines continue to cancel services,
lay off employees, and cut corners to maintain minimal
profi tability, in 2011 Spirit’s revenue soared 37.1 percent over
the previous year. Th e airline also fl ew 15.2 percent more seats
and added multiple routes.
So how did Franke and Baldanza transform a company
once facing bankruptcy into the most profitable airline
in the United States? By doing everything that was once
deemed impossible, yet has since—thanks to Spirit’s
innovative example—become the industry standard. That
means offering the cheapest tickets in the business and
making everything—from water to boarding passes—a
la carte. Spirit was the first U.S. airline to reintroduce
a charge for checked luggage, which has since become
commonplace.
Spirit has found its niche—the traveler who is ultra-budget
conscious and is interested in little more than getting from
A to Z at the cheapest possible price. It’s that simple, and
Spirit doesn’t pretend to embody anything else—not comfort,
not convenience, not service. Spirit’s on-time performance
is among the worst in the industry; its legroom is negligible
at best, and (not surprisingly, considering its bare bones
approach to travel), it has suff ered more than a few PR
disasters in recent years. Th ese include irate, vocal customers
like Jerry Meekins, a 76-year-old Vietnam vet with terminal
cancer, who was denied a refund by Spirit after he was told by
doctors that he had only months to live and couldn’t fl y (and
so couldn’t use his ticket); and a 2010 pilot strike that saw the
airline grounded for 10 days.

Yet Baldanza seems unphased: “We just want to have the
lowest price. Th at drives almost every other decision in the
company: how many seats to have in the airplane, what times
of day to fl y, the kinds of cities we fl y to, and so on.”
With Spirit’s enviable balance sheet, it’s likely that more
airlines will get on board with the nickel-and-diming scheme.
It may be bad news for consumers, but it’s good news to
airlines that are struggling to make a profi t in uncertain
times.

1. Spirit’s number one goals seems to be “the lowest-price airline ticket.” Is this a S.M.A.R.T Goal? Explain.

2. Will this strategic goal continue to be successful for Spirit? Why or Why Not?

3. If you were the CEO of Spirit, what goals would you add to ensure that the company prospers in the long run?

Lamplighter Company, the lessor, agrees to lease equipment to Tilson Company, the lessee, beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

Required:

selling price implied by the lease is $148443.65.

I need help with the boxes that don't have green check marks in them.

A multiple regression model is to be constructed to model the time spent using the internet per week among internet users. The explanatory variables are age, hours spent working per week and annual income.

Data has been collected on 30 randomly selected individuals:

a.) Find the multiple regression equation using all three explanatory variables. Assume that x₁ is age, x₂ is hours working per week and x₃ is annual income. Give your answers to 3 decimal places.

y^ = _____ + _______age + ________ hours working + ________ annual income

b.) At a level of significance of 0.05, the result of the F test for this model is that the null hypothesis (is) (is not) rejected.

c.) The value of R² for this model, to 3 decimal places, is equal to __________

d.) The value of s for this model, to 3 decimal places, is equal to _________

e.) The least significant explanatory variable in this model is:

a.) age
b.) hours working per week
c.) annual income

f.) Construct a new multiple regression model by removing the variable annual income. Give your answers to 3 decimal places.

The new regression model equation is:

y^ = ________ + _________ age + ________ hours working

g.) In the new model compared to the previous one, the value of R² (to 3 decimal places) is:

a.) increased
b.) decreased
c.) unchanged

h.) In the new model compared to the previous one, the value of s (to 3 decimal places) is:

a.) increased
b.) decreased
c.) unchanged

i.) The better model is the:

a.) original model
b.) reduced model

Bradley-Link’s December 31, 2018, balance sheet included the following items: Long-Term Liabilities ($ in millions) 9.0% convertible bonds, callable at 104 beginning in 2019, due 2022 (net of unamortized discount of $3) [note 8] $197 11.0% registered bonds callable at 107 beginning in 2028, due 2032 (net of unamortized discount of $1) [note 8] 66 Shareholders’ Equity 6 Equity—stock warrants Note 8: Bonds (in part) The 9.0% bonds were issued in 2005 at 97.5 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of the Company’s no par common stock. The 11.0% bonds were issued in 2009 at 105 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitles the holder to purchase one share of the Company’s no par common stock for $30, beginning 2019. On January 3, 2019, when Bradley-Link’s common stock had a market price of $37 per share, Bradley-Link called the convertible bonds to force conversion. 90% were converted; the remainder were acquired at the call price. When the common stock price reached an all-time high of $42 in December of 2019, 40% of the warrants were exercised. Required: 1. Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2005 and 2009. 2. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019 and the retirement of the remainder. 3. Assume Bradley-Link induced conversion by offering $160 cash for each bond converted. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019. 4. Assume Bradley-Link induced conversion by modifying the conversion ratio to exchange 55 shares for each bond rather than the 50 shares provided in the contract. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019. 5. Prepare the journal entry to record the exercise of the warrants in December 2019.

CASE 13.1 Wash & Dry, lnc.

Wash & Dry (WD) is a small manufacturing company with annual revenues for 2015 reaching $10 million. Located in Bellefonte, PA, WD produces various types of laundry and personal soaps as well as an array of paper products, such as paper towels and napkins. The unique nature of WDs products have allowed it to grow from a start-up in 2010 with revenues of $1 million to where it is today. WDs products are totally sustainable and command a higher price than competitors in the markets they serve. Their products are sold through both mass merchandisers as well as specialty retailers. WD manufactures it products in two plants in Bellefonte: one dedicated to the soap line and one to paper products. From these two plants, finished products are transported to their distribution center located in Harrisburg, PA. From there, mixed shipments of soap and paper are sent to the retailer distribution centers where they are sorted and mixed with other products going to retail stores' As a relatively small company¡ WD had a very unsophisticated set of key performance indicators (KPIs). At the plant, the KPI was "did we make what we were scheduled to make today'' At the DC, the KPI was 'did we ship what we were supposed to ship today.” Although these two KPIs seemed to work in the past, WDs growth and pressure from its retail customers for better service made it necessary for WD to consider developing a more comprehensive set of KPIs.

CASE QUESTIONS

l. If you were hired as a consultant to develop these KPIs for WD, how would you assess what KPIs they should be measuring? In general, what areas of service and cost would these KPIs address? Be sure to include both internal and customer KPIs'

2. What KPIs would you recommend for the manufacturing facility? why?

3. What KPIs should be used at the distribution center? Why?

4. How would you measure the revenue and profit impacts of these new KPIs?

iKiwi wants to be able to analyse sales information from all its stores so that any opportunities to increase revenue can be identified and acted on. They also want to be able to track product returns for quality control purposes. You are the Chief Knowledge Officer and have been asked to create two Data Warehouses:

1. Create a Data Warehouse schema (with one central table and at least four lookup tables) that iKiwi can use to monitor sales performance. Provide some context for your schema. 2. Create another Data Warehouse schema (with one central table and at least four lookup tables) to monitor products returned by customers. Provide some context for your schema.

1, Which of these is NOT a component of the Business Model?

A) The value proposition

B) The target market

C) the competition

2, Wang, Digital, Data General, Prime, and other computer companies were all created in northeastern Massachusetts! They felt that computing was professional and not personal. Computers were to be controlled by operators and not end-users. These minicomputer makers failed to see how the microcomputer would make computing ubiquitous. None of them exist today. We refer to their reason for failure as:

A) Utterly unsound economics

B) A business concept blind spot

C) An inability to compete with larger customers

D) Loss of key leadership when the founders retired.

D) the revenue sources

E) all of the above are components of the business model.

The sandwich shop is a restaurant that serves only one item, the ham sandwich. The restaurant serves two groups of customers, younger adults and senior citizens. The two segments have the following demand functions: younger adults, Q_y = 5,000 – 10P_y and senior citizens, Q_s = 10,000 – 100P_s. The restaurant has constant marginal cost of $10 and no fixed costs.

(4)a. Write the inverse demand and marginal revenue functions for each segment of the ham sandwich market.

(4)b. What are the profit maximizing price and quantity for each segment and how much profit will he earn?

(4)c. What are the price elasticities of demand for each segment at the prices and quantities you determined in part “b”

Let’s assume you were hired by Panera Bread( a restaurant with fast service and healthy options) to restructure how this business operates with the following goals in mind:

1. Increase customer service by decreasing negative comments on customer comment cards
2. Create a physical redesign that increases efficiency for customers and employees, and
3. As a result of the reorganization, increase store overall revenue by 7% in the next year

What model(s) would you use to meet these goals? How would you use what you learned about organizing to manage these changes? What needs to be done first? second? etc. make sure the plan you put in place allows you to meet the goals identified.