The Nederlander Organization is a theatrical organization that owns concert venues and Broadway theaters. Nederlander describes itself as a lifestyle company, which puts them in a specific niche with a specific type of customer. The organization engages in promotional activities for various concerts as well as production of Broadway shows. Nederlander Organization has leveraged these relationships with their Audience Rewards program, a type of sales promotion that has allowed them to build strong relationships with customers by enhancing their experience. The unique nature of the industry and smaller size of their target market allow Nederlander to create a valuable experience for customers through personal selling and sales promotion activities. The Audience Rewards is similar to a frequent-flyer program. Nederlander’s sales promotion program strongly benefits smaller venues. The Audience Rewards program also depends on outside relationships with major companies that sponsor the rewards for the program. Nederlander’s target market is an attractive opportunity for large companies. A market dominated by 30- to 59-year-old females with an annual income of approximately $200,000 appeals to their corporate partners because they want to get access to their customers. In addition to the many benefits of this program, sales promotion has provided Nederlander Organization with a competitive advantage over other companies. Questions for Discussion 1. Why do you think more targeted promotional efforts such as personal selling and sales promotion are necessary for Nederlander’s specific target market? 2. How does Nederlander’s Audience Rewards program result in a competitive advantage? 3. Describe how Nederlander’s strong customer relationship management results in increased loyalty to the organization.

Kaila Company’s Body Lotion Division produces a body lotion that is used by manufacturers of various body butter products. Sales and cost data on the body lotion follow:

Selling price per unit on the intermediate market . . . . . . . . .$70

Variable costs per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45

Fixed costs per unit (based on capacity) . . . . . . . . . . . . . . . $10

Capacity in units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Number of body lotion:

Produced during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000

Sold to outside customers . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

Kaila Company has a Body Butter Division that could use this body lotion in one of its products. The

Body Butter Division will need 5,000 body lotions per year. It has received a quote of $60 per body lotion

from another manufacturer.

Required:

1. Assume that the Body Lotion Division is now selling only 20,000 body lotions per year to outside

customers. Can the selling division and buying division negotiate for the transfer price? Calculate the lower and upper acceptable transfer price!

2. Assume that the Body Lotion Division is selling 28,000 of the body lotions it can produce to outside

customers. Can the selling division and buying division negotiate for the transfer price? Calculate the lower and upper acceptable transfer price!

3. Assume that the Body Lotion Division selling all the speackers at cost to Body Butter Division. Can they still get profit for their divison? Which one is better, negotiated transfer price or transfer at cost for the selling division?

Please solve by hand

A company is investing in a new expansion project which will cost $180,000 paid over 3 equal payments of $60,000. one payment is due now, one at the end of the first year and one at the end of the 2nd year. The project will start generating revenues of $44,000 per year at the end of the third year and up to and including the 10th year. Minimum Acceptable Rate of Return (MARR) = 8%. Please note that because this project is an investment, MARR provides the mathematical interest rate used for calculations (i).

a) Draw the cash flow diagram (CFD) for this investment showing cost and revenue components of the CFD.

b) If all the initial costs needed for this investment are to be financed from a line of credit. What is remarkable about a line of credit, as opposed to a loan, is that you can borrow the money whenever you want. Interest will only accrue after you borrow. The credit limit will always be available, even if you choose not to use it. That is, money can be borrowed whenever needed from an account up to $500,000.

Find the maximum interest rate for this line of credit so that the project is feasible. The company decided to pay back this money to the line of credit as a lump sum (one payment) at the end of the project (whenever the last revenue is received.

A local shop owner would like to know if he can predict weekly sales by knowing the number of customers who visit his shop in the week. He takes a random sample of 10 weeks from the previous year, recording the number of customers and the sales in thousands of dollars. The results are summarized in the table below. He has assumed that the sales are normally distributed.

a. Find the equation for the regression line.

b. Interpret the slope in terms of this problem.

c. Interpret the y-intercept for this problem.

d. Interpret the coefficient of determination in terms of this problem.

e. Find the correlation coefficient.

f. If 800 customers visited his shop in one week, what would he predict as his sales for that week?

g. If 700 customers visited his shop in one week, what would he predict as his sales for that week?

h. Do the data indicate a strong linear relationship between the number of customers and sales at the 5% significance level?

Neve Commercial Bank is the only bank in the town of​ York, Pennsylvania. On a typical​ Friday, an average of 8 customers per hour arrive at the bank to transact business. There is one teller at the​ bank, and the average time required to transact business is 3 minutes. It is assumed that service times may be described by the negative exponential distribution. A single line would be​ used, and the customer at the front of the line would go to the first available bank teller. If a single teller is​ used:

a) The average time in the line? = ______ minutes?.

b) The average number in the line? = _______customers?.

c) The average time in the system? = _____minutes? .

d) The average number in the system? = ______customers?

e) The probability that the bank is empty? = ____?(round your response to two decimal? places).

f) CEO Benjamin Neve is considering adding a second teller? (who would work at the same rate as the? first) to reduce the waiting time for customers. He assumes that this will cut the waiting time in half.

g) If a second teller is? added, the average time a customer spends in the queue? = ____ minutes?

h) If a second teller is? added, the average number of customers in the queue? =??____ customers.

I) If a second teller is? added, the average time a customer spends in the system? = _____minutes

j) If a second teller is? added, the average number of customers in the system? =?? customers?

1. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years.

         Pretax accounting income                                                                  $800,000

         Excess tax depreciation                                                                      (480,000)

         Litigation accrual                                                                                      70,000

         Unearned rent revenue deferred on the books but appropriately

               recognized in taxable income                                                            60,000

         Interest income from New York municipal bonds                           (20,000)

         Taxable income                                                                                    $430,000

1.   Excess tax depreciation will reverse equally over a four-year period, 2021-2024.

2.   It is estimated that the litigation liability will be paid in 2024.

3.   Rent revenue will be recognized during the last year of the lease, 2024.

4.   Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2024.

(a)   Prepare a schedule of future taxable and (deductible) amounts.

(b)   Prepare a schedule of the deferred tax (asset) and liability at the end of 2020.

(c)   Since this is the first year of operations, there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit).

(d)   Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020.

1. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years. Pretax accounting income $800,000 Excess tax depreciation (480,000) Litigation accrual 70,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income 60,000 Interest income from New York municipal bonds (20,000) Taxable income $430,000

1. Excess tax depreciation will reverse equally over a four-year period, 2021-2024.

2. It is estimated that the litigation liability will be paid in 2024.

3. Rent revenue will be recognized during the last year of the lease, 2024.

4. Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2024.

(a) Prepare a schedule of future taxable and (deductible) amounts.

(b) Prepare a schedule of the deferred tax (asset) and liability at the end of 2020.

(c)   Since this is the first year of operations, there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit).

(d)   Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020.