Questions
Who are you? You are the vice president of operations at Exquisite Entertainment, an entertainment company...


Who are you?

You are the vice president of operations at Exquisite Entertainment, an entertainment company that owns and operates 19 seasonal and year-round amusement parks (Worlds of Play) located throughout the U.S. You are responsible for providing overall direction and guidance with regard to the operational activities of the organization.

What''s the current situation?

The company''s amusement parks have always been popular, but recently they haven''t been very profitable. Operating costs have been rising, and every dollar of extra revenue has been hard won. At the company''s annual management offsite meeting held that morning at Worlds of Play-Seattle, Alex Harrington, a business strategy consultant from Ernst & Young LLP, unveiled "Operation Upmarket," a business strategy proposal aimed at addressing the issue of profitability for Worlds of Play. This plan proposed that Worlds of Play offer its customers the option of a "preferred guest" card. Cardholders would pay more, but they would get first crack at the rides and would get seated immediately at any of the park''s restaurants. According to Alex, the plan would help Worlds of Play finances because it would target the "mass affluents"--wealthy but time-pressed people who might visit the park more often and spend more time while there, were it not for long lines at the rides.

You think back to that morning's meeting. You respect Alex's plan, but what about the initiatives you had implemented to tap into that same segment? In fact, you have already had some successes. Roughly 20% of Worlds of Play souvenir shops have been upgraded to gift boutiques with more appealing displays and higher-priced merchandise, and some snack concessions have been converted to seated dining. The most upscale of the restaurants are already earning almost double the profit per square foot of the other food-service facilities.

Alex had done an impressive amount of work developing the idea, commissioning surveys and focus groups, and getting finance to run the numbers. Her presentation had been persuasive, you admit. Her tactic had been to get people arguing the details--should the pass cost $20 more than general admission or $30 more?--while ignoring the question of whether it was a good idea at all. At first, this approach seemed to be working. But Grace Jones, Exquisite Entertainment's vice president of human resources said, "Clearly, there's revenue to be gained from offering these differentiated service levels. But it just doesn't seem like us. The founder of Worlds of Play created a place where families could come together for a day to forget about their cares." Alex said, "Our history is great, but if things don't turn around fast, we are going to be history. The company has to make changes quickly to avoid cash-crunch-driven bankruptcy or a hostile takeover."

It was no secret to anyone in the meeting that theme parks have only three ways to bring in more revenue: (1) increase visits per customer, (2) increase average spending per visit, or (3) attract new customers. Alex argued that the guest card would address the last two items by attracting a different type of customer--time-starved, high-income professionals and their families--who might otherwise avoid the whole experience.

Adam Goodwin, the VP of marketing said, "It strikes me as a very shortsighted strategy. I mean, sure we could make a lot of money on those cards in the first couple of seasons. But just think about what it does to the overall customer experience. The average Joe with his wife and three kids is not going to shell out for five upgrades. So they are going to be sweating through even longer lines and just steaming when they see some yuppie waltz ahead of them. I don't even think it's a great experience for the preferred guests. Who wants to feel all the anger directed at them? The key to this business is that the customers feel good while they are here. A couple of ugly glances, a nasty remark, and the day is spoiled for everybody. Neither side's coming back."

"I should have explained," Alex said. "We would definitely separate the lines so the preferred cardholders wouldn't be in people's faces and we'd limit the percentage of special tickets issued on any given day. But I don't think you are giving your customers enough credit. People have a lot more awareness and appreciation of the fact that time is money. This program lets them choose which they want to save."

What are you supposed to do?

You have been charged by CEO Len Becker to summarize the merits of the option presented at the meeting in his absence. Craft the body of a document for Mr. Becker.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

In: Operations Management

You are an investor who bought 100 shares of a company at $35 per share with...

You are an investor who bought 100 shares of a company at $35 per share with a stock on margin of 60%. The stock is now trading at $50 per share, and the initial margin require- ments has been lowered to 50%. You now want to buy 300 more shares of the stock. What is the minimum amount of equity that you will have to put up in this transaction?

In: Finance

for the longest time companies offered the employees who stayed with the company for many years...

for the longest time companies offered the employees who stayed with the company for many years a defined pension plan to help them retire when it was time. that time has since passed and companies now offer a defined contribution plan instead.
why do you think that they have made this change? Do you think that this is an ethical behavior for the companies of today? why or why not?

In: Accounting

How has the Coronavirus impacted students educational lives within the university sector, discuss? please I need...

How has the Coronavirus impacted students educational lives within the university sector, discuss? please I need 1500 words on his topic

In: Economics

SELECT model for sustainable competitive advantage Lee, K. & Carter, S., (2012), Global Marketing Management, 3rd...

SELECT model for sustainable competitive advantage

Lee, K. & Carter, S., (2012), Global Marketing Management, 3rd edition, Oxford University Press

In: Operations Management

Apply the Job Dissatisfaction Model = Voice/Exit/Loyalty/Neglect model to a day to day personal life experience...

Apply the Job Dissatisfaction Model = Voice/Exit/Loyalty/Neglect model to a day to day personal life experience at work, home or university ASAP

In: Operations Management

For the fall 2020 football season, how might MSU enhance the experience for a number of...

For the fall 2020 football season, how might MSU enhance the experience for a number of groups of fans by offering "multiple strategies"?

Michigan State University

In: Operations Management

I am starting my first statistics and probability course at my university. What is the best...

I am starting my first statistics and probability course at my university. What is the best way to study this subject and get good grades?

In: Math

Today is Jan. 31, 2021 and the current exchange rate between US dollar and Canadian dollar...

  1. Today is Jan. 31, 2021 and the current exchange rate between US dollar and Canadian dollar is US$0.7946/CAD (U.S. is the home country). The current June 2021 Micro CAD/USD Futures exchange rate is US$0.7949/CAD. Contract size is CAD $10,000. For more information about this futures contract, please go to the website below:

The risk-free rate in Canada is 0.15% per annum with continuously compounding. Assume all futures contracts expire in the last day of the month.

  1. What should the risk-free rate in US be assuming no arbitrage in the market? (3 points)

  1. If the risk-free rate in US is 0.08% per annum with continuously compounding, is there an arbitrage opportunity? If yes, please specify your arbitrage strategy and cash flow. If no, please explain. (6 points)
  1. Following (b), if you need to pay 0.1% of your total value of US dollar as a transaction fee when you convert between US dollar and Canadian dollar in the spot market, (i.e., if you want to buy 1 Canadian dollar, you need to pay US$ (0.7946 + 0.1%*0.7946); if you want to sell 1 Canadian dollar, you will receive US$(0.7946-0.1%*0.7946)), and no transaction fee for futures contracts, is there still an arbitrage opportunity? If yes, please specify your arbitrage strategy and cash flow. If no, please explain. (5 points)

In: Finance

West Chester University ACC 303 - Spring 2018 Master Budget Problem Ginger LLC makes two products...

West Chester University

ACC 303 - Spring 2018

Master Budget Problem

Ginger LLC makes two products identified as G1 and G2. Selected data for 2018 follow:

Requirements for each finished product (Raw Materials & Labor):

G1

G2

H1 (pounds)

12

10

H2 (pounds)

0

2

H3 (pounds)

2

1

Direct Labor (hours)

2

3

Other Product Information:

G1

G2

Sales price ($)

$155

$225

Sales (units)

11,500

9,500

Estimated beginning inventory (units)

400

150

Desired ending inventory (units)

300

200

H1

H2

H3

Cost per pound

$2.00

$2.50

$0.50

Estimated beginning inventory (pounds)

3,000

1,500

1,000

Desired ending inventory (pounds)

4,000

1,000

1,500

The average wage rate for 2018 is expected to be:

$25

per hour

The effective income tax rate for the company is:

40%

Ginger uses direct labor-hours to apply overhead. Each year the company determines the overhead application rate for the year based on the budgeted output for the year. The company maintains negligible work in process inventory and expects the cost per unit for both beginnning and ending finished product inventories to be identical.

West Chester University

ACC 303 - Spring 2018

Master Budget Problem

Factory

Overhead

Information

Indirect materials - variable

$10,000

Misc. supplies and tools - variable

$5,000

Indirect labor - variable

$40,000

Supervision - fixed

$120,000

P/R taxes and fringe benefits - variable

$250,000

Maintenance costs - fixed

$20,000

Maintenance costs - variable

$10,080

Depreciation - fixed

$71,330

Heat, light & power - fixed

$43,420

Heat, light & power - variable

$11,000

Total

$580,830

SGA

Expense

Information

Advertising

$60,000

Sales salaries

$200,000

Travel & entertainment

$60,000

Depreciation - warehouse

$5,000

Office salaries

$60,000

Executive salaries

$250,000

Supplies

$4,000

Depreciation - office

$6,000

Total

$645,000

West Chester University

ACC 303 - Spring 2018

Master Budget Problem

Other Information:

All sales are made on credit. The credit sales collection pattern is as follows:

Percent collected in month of sale

60%

Percent collected in month following sale

40%

December 2017 credit sales were:

$290,000

December 2018 credit sales were:

$360,000

All raw material purchases are made on account. The payment pattern is as follows:

Percent paid in month of purchase

25%

Percent collected in month following purchase

75%

December 2017 raw material purchases were:

$46,000

December 2018 raw material purchases were:

$42,000

The company pays direct labor, factory overheads and selling, general & administrative expenses in the periods incurred.

Forecasted income taxes are presumed to be paid in December of each year.

Company policy requires that a minimum cash balance of $50,000 be maintained at all times. Repayments of the company line of credit ar made in $10,000 increments. The company owed $750,000 on the line of credit at December 31, 2017.

The cash balance at December 31, 2017 was $50,000

The company plans to purchase new equipment in 2018 costing

$200,000

Required: Prepare and Excel spreadsheet that contains the following schedules por statement for 2018.

Use a separate tab (worksheet) for each schedule.

1. Factory overhead budget

2. Cost of goods sold & ending finished goods inventory budgets

3. Selling and administrative budget

4. Budgeted income statement

5. Cash budget

In: Accounting