| Cost | Machine Hours | April | $61,255 | 1,189 | May | $82,714 | 1,806 | June | $97,496 | 2,474 | Using the high-low method, determine the variable cost per unit, and the total fixed costs. Select the correct answer. $28.20 per unit and $69,775 respectively. | | | $28.20 per unit and $27,721 respectively. | | | $30.45 per unit and $27,721 respectively.
The total was then divided by the total expected attendance to get a variable cost per capita of $3.05 [1.2]. The fixed cost of $263,245 includes the other 90% of the mentioned variable costs and the talent, operations, and production expenses [1.3]. By using the breakeven formula, it was found that a total of 6,658 tickets need to be sold, assuming 1,665 are given away [1.4]. If ALLTEL wishes to earn $30,000, it must sell 7,923 tickets [1.5]. When given the scenario of selling 7,000 tickets at a $200,000 fixed-fee concert, the Pavilion can price the tickets at $32.95 in order to gain earnings of $30,000 after a 40% tax rate [2.1].
Assuming that growth in the CA segment stagnates, and that only heavy CA applicators would be interested in dispensing equipment the total market is still estimated at 19,240 users. About half of these users, i.e. ~10,000 firms have expressed an interest in investing in newer dispensing technology, leading us to believe that the market potential for the product is approximately 10,000 machines on a cautious basis. Assuming the growth projections for cyano-acrylate usage are accurate, the total number of firms purchasing the product in FY 1979 is estimated to be 270,000. Using these figures and assuming that both heavy and medium users (those buying between 1-9 pounds of cyano-acrylates per year) are potential customers; the maximum size of this market is estimated at 81,000 purchases.
Sean Clark ACCT 551 1/9/14 Assignments Week 1 1. Problem 2-16 a. 2 b. 2 c. 3 2. Problem 2-17 a.
• It is assumed that Working Capital increases in proportion to growth in Revenue of 9% till 2019 and 4% for 2020. • Interest is not in calculation of Cash flows since we have considered its effect while calculating WACC. On analyzing the revenue streams of the Company, we see that it generates roughly 40% of its income from Broadcasting rights, followed by Attendance (23%), Sponsorship (21%) and Merchandise (7%). Whereas on the expenses side, payroll accounts for 74% of the Operational costs while only 24% is spent for the stadium operations. With the current high operating cost (Operating costs: Revenue = 0.93) it is not a surprise that the EBIT is only 3.7% of total Revenues while Net income account only for 0.5%.
The populations have equal variances. Test Statistic: RR: or Calculations: = 10(24.2 - 27.16...)2 + 10(27.1 - 27.16...)2 + 10(30.2 - 27.16...)2 = 180.066.... = 9(21.54) + 9(18.64) + 9(17.76) = 521.46 Source | df | SS | MS | F | Treatments | 2 | 180.067 | 90.033 | 4.662 | Error | 27 | 521.46 | 19.313 | | Total | 29 | 702.527 | | | Decision: Reject Ho. Conclusion: There is sufficient evidence to indicate that the mean times required to complete a certain task differ for at least two of the three levels of training. Which pairs of means differ? The Bonferroni Test is done for all possible pairs of means.
CASE ANALYSIS: MARRIOTT CORPORATION Executive Summary Marriott Corporation began in 1927 and in 1987 the company's profits were $223 million on sales of $6.5 billion. Marriott had three major lines of business: lodging, contract services, and restaurants. Lodging operations included 361 hotels with more than 100,000 rooms in total and generated 41% of 1987 sales and 51% of profits. Contract services provided food and services management, and it also provided airline catering and airline services. Contract services generated 46% of 1987 sales and 33% of profits.
Mini case 3 1. Calculate re using the Discounted Cash Flow method (otherwise known as the Discounted Dividend Model) * The common stock price is $40 per share, and the dividend is $2. * The sustainable growth rate is .067 r equity = DIV1/P0 + g 2/40 + .067 .05 + .067 .117 or 11.7% 2. Calculate re using the Capital Asset Pricing Model CAPM cost of equity = r equity = risk free interest rate (rf) + β (rm – rf) .07 + .5(.07) = 10.5% 3- Calculate DCF cost percentage The discounted cash flow method, know as discounted dividend model, is a method to calculate the present value PV , it is an estimation of the present value PV of the cash flow associated with investment. DCF= CF/(1+r)1 where 16% is estimation of required prferred return rate DCF= .16/(1+.107) DCF = 14.45% For Question 5, we found that the book value of the WACC is lower as it is stated in p. 389 of the textbook.
The straight-line method spreads the expense evenly by periods and the accelerated methods yield higher depreciation expense in the early years of an asset’s useful life and lower depreciation expense in the later years while the units-of-production method, bases depreciation expense for a given period on actual use. Companies use different depreciation methods for tax reporting and financial reporting because every company has a different asset quality and the depreciation on those assets for each company depreciates differently so it is up to the management to be discrete to which choice of depreciation to use in their reporting in respect to their fixed assets. Straight Line method: Advantage: 1) Straight-line method allows for more “income smoothing". 2) It allows company to show more book value of the asset which increases the value of the company. Disadvantages: 1) benefit of Tax deduction is availed late.
Stage of production Sales value of product Firm A $1,600 Firm B 2,500 Firm C 3,700 Firm D 5,200 Firm E 7,600 New 8. What is the value added by all the firms A–E from the production of a product as described below? What did each firm add separately in value and what does it total? Stage of production Sales value of product Firm A $4,500 Firm B 8,600 Firm C 14,700 Firm D 20,100 Firm E 32,300 9. Identify at least four transactions and other variables which are not included in the Gross Domestic Product.