4) Consider total cost and total revenue given in the following table:

Quantity 0 1 2 3 4 5 6 7 7

Total Cost $120 150 160 170 190 230 300 410 610

Total Revenue $0 70 140 210 280 350 420 490 560

A. Create a table that includes the fixed cost at each level of output as well as the variable cost

at each level of output. If capital is fixed and the firm uses 10 units of capital, then what is

the price of capital? If labor is variable and the firm uses 5 units of labor to produce 3 units

of output, then what is the price of labor?

B. Create a table that includes the marginal cost, average variable cost, and average total cost

associated with each level of production. Graph these three cost measures on a single graph

with quantity on the horizontal axis. Explain how you know the firm exhibits the law of

diminishing returns.

C. Calculate profit (revenue minus costs) for each quantity. Calculate marginal revenue for

each quantity. Verify that the profit maximizing firm will choose the highest level of profit

at a point where MR = MC.

D. This firm is in a perfectly competitive industry? Explain how we know this is true. What

do you expect to happen in the long run in this industry? Will firms enter or leave the

market in the long run? Will the market price increase or decrease in the long run?

Anywhere Hospital’s CFO for the past 20 years, Jim Smith, just retired. He worked for the hospital for 40 years and was greatly respected by his staff. The hospital governing board has hired a new CFO, Todd White.

Jim Smith utilized the silo approach to revenue cycle management during his tenure. He relied on his key management personnel to contact upper management of other departments in the hospital to discuss issues and to resolve problems and vice versa.

Todd White, however, had implemented an integrated revenue cycle team at his former hospital three years ago and strongly believed in the power of teamwork. His previous team had gained numerous efficiencies and improved accounts receivable by millions. So when Todd started at Anywhere Hospital he planned on implementing a similar revenue cycle team.

As with any change, Todd was met with much resistance. But after speaking with many of his managers in patient accounts and finance he realized that the employees did not know how to effectively work in teams. And why should they—the previous CFO had not asked them to do so in several years.

1.      What are some creative ways that Todd can help Anywhere Hospital understand the importance of an integrated revenue cycle team?  

2.   How can a manager improve teamwork amongst his or her employees?

3. Does Todd need assistance from a Changer Management Leader? Please explain your answer.

Required information

Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]

[The following information applies to the questions displayed below.]

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Problem 6-10 (Algo) Part 4

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

Solve for "X"

Please show you work, I've tried finding the answers to year 2022 and 2023 but nothing is working

As the assistant bank manager, you want to provide prompt service for customers at your bank's drive thru window. The bank can currently serve up to 10 customers per 15-minute period without significant delay. The average arrival rate is 7 customers per 15-minute period. Let x denote the number of customers arriving per 15-minute period. Assume this is a Poisson distribution.

a. Find the probability that 10 customers will arrive in a particular 15-minute period.
b. Find the probability that 10 or fewer customers will arrive in a particular 15-minute period.
c. Does your own personal bank have prompt service? Are there ways that your bank can improve their customer service? How?

1. Sprint charges its current customers an average of $55 per month. It costs Sprint $4.50 per month to serve these customers. It also spends $3 per customer per month to keep these customers loyal. Over the last few years Sprint has been able to retain 80% of its customers. Assume a discount rate of 5% annually.

1. Calculate Sprint’s customer lifetime value of its current customers. [2]

2. Sprint is willing to spend $320M in advertising to 10 million viewers, and $375M in buying out contracts for T-Mobile and AT&T customers. They expect that at least 10% of those in the targeted group will switch. In addition to cutting rates of these potential customers, leading to an average monthly price of $40 per month per customer. These customers would also pay $50 in activation fees. Calculate the CLV for these customers at the same discount rate, retention spending, and variable cost, however the retention rate is expected to be 88% for these new customers. (hint: Initial margin = activation fee) [3]

CLV=Initial margin+ Mr/(1+d-r)-AC

3. What is the minimum acquisition rate they would need to achieve for this promotion to be justified (breakeven acquisition rate)? [2]

  Breakeven Acquisition Rate= Acquisition Spending/CLV

4. Assume that Sprint they fell short of the 10% goal, and got 7.5% of the targeted customers to switch, and year-to-year Sprint can increase their margins from these customers by 6%. Out of the buyout money, they paid an average of $125 in early termination fees per customer. Calculate their new CLV using the acquisition cost. (Hint: use the formula with g. AC = [advertising/number of people who switched] + average buyout cost). [3]

CLV= Initial + M x r / (1+d-r[1+g]) - AC

Use computer software packages, such as Excel, to solve this problem.

The Jacobs Chemical Company wants to estimate the mean time (minutes) required to mix a batch of material on machines produced by three different manufacturers. To limit the cost of testing, four batches of material were mixed on machines produced by each of the three manufacturers. The times needed to mix the material follow.

a. The following regression model can be used to analyze the data.

E(y) = B0+B1D1+B2D2

Show the values of the variables below. If your answer is zero enter “0”.

b. Show the estimated regression equation (to the nearest whole number and enter negative value as negative number).

y^=______+______D1 +_______D2

c. What null hypothesis should we test to determine if we should reject the assumption that the mean time to mix a batch is the same for all three manufacturers?

Select the number of the null hypothesis you would want to test.

- Select your answer -12345Item 6

d. What is the value of the test statistic in your hypothesis in part (c) (to 2 decimals)? Use Table 4 in Appendix B.

What is the -value?

- Select your answer -less than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 8

What is your conclusion?

- Select your answer -Conclude that the mean time is not the same for all three manufacturersConclude that the mean time is same for all three manufacturersItem 9

Appliance Center is an experienced home appliance dealer. Appliance Center also offers a number of services for the home appliances that it sells. Assume that Appliance Center sells ovens on a standalone basis. Appliance Center also sells installation services and maintenance services for ovens. However, Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $170. Additionally, the incremental amount charged by Appliance Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800.

Assume that a customer purchases an oven with both installation and maintenance services for $990. Based on its experience, Appliance Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct).

(b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to 2 decimal places.)

show work and explain

The following data were selected from the records of Sykes Company for the year ended December 31, Current Year. Balances January 1, Current Year Accounts receivable (various customers) $ 117,000 Allowance for doubtful accounts 6,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 4/10, n/30 (assume a unit sales price of $700 in all transactions and use the gross method to record sales revenue). Transactions during Current Year

Sold merchandise for cash, $248,000.

Sold merchandise to R. Smith; invoice price, $11,500.

Sold merchandise to K. Miller; invoice price, $23,000.

Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit.

Sold merchandise to B. Sears; invoice price, $26,000.

R. Smith paid his account in full within the discount period.

Collected $99,000 cash from customer sales on credit in prior year, all within the discount periods.

Miller paid the invoice in (c) within the discount period.

Sold merchandise to R. Roy; invoice price, $20,500.

Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund.

After the discount period, collected $6,000 cash on an account receivable on sales in a prior year.

Wrote off a prior year account of $5,000 after deciding that the amount would never be collected.

The estimated bad debt rate used by the company was 1.0 percent of credit sales net of returns.

Appliance Center is an experienced home appliance dealer. Appliance Center also offers a number of services for the home appliances that it sells. Assume that Appliance Center sells ovens on a standalone basis. Appliance Center also sells installation services and maintenance services for ovens. However, Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. Additionally, the incremental amount charged by Appliance Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800.

Assume that a customer purchases an oven with both installation and maintenance services for $1,020. Based on its experience, Appliance Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct).

(b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to 2 decimal places.)

Prepare adjusting entries.

A review of the ledger of Monkey Ltd at 30 June 2019 produced the following data relating to the preparation of annual adjusting entries:

1. Prepaid insurance $37260: the entity has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on 1 January 2018 for $33300. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on 1 July 2018 for $9510. This policy has a term of 2 years.

2. Subscriptionrevenue received inadvance $135200:theentitybegan sellingmagazine subscriptions on 1 April 2019 on an annual basis. The selling price of a subscription is $130. A review of subscription contracts reveals the following:
Subscription start date Number of subscriptions

1 April 200

1 May 300

1 June 540

1040
The annual subscription is for 12 monthly issues. The June magazine for all of the subscriptions had been delivered to the subscribers at 30 June 2019.

3. Bank loan $100000: the loan was taken out on 1 April at an annual interest rate of 6%.

4. Salaries payable: There are eight salaried employees. Salaries are paid every Friday for the current week. Four employees receive a salary of $1050 each per week, and three employees earn $1350 each per week. 30 June is a Tuesday. Employees do not work on weekends. All employees worked the last 2 days of June.

Required

(a) Prepare the adjusting journal entries at 30 June 2019.

(b) Explain why the business would not recognise the full subscription revenue when the customers sign up for the magazines and pay for the subscription.