Question 31You are the revenue manager for the UCF athletic department. The ticketsale model that is used to price UCF football tickets is a dynamic pricingmodel, which means ticket prices adjust to supply and demand.Your group ticket manager contacts you and says that he has a large groupthat is requesting a group rate for 50 tickets for 3 games (150 total).Traditionally, the tickets that the group is requesting would sell for$100 each. You know that you could sell 70 tickets but cannot be sureabout the other 80 seats. This means that the displaced contribution wouldhave be $5,600 (70 x $80). The group will make other revenuecontributions by spending $1,500 in concessions. Thus, making the totaldisplacement contribution needed $4,100. The variable cost on each ticketis $20. What is the minimum price you could sell these tickets for?Contribution Margin = Ticket price - Variable costs$10.99None of these answers are correctO $100$27.33$50.01

Here discuss about the calculation of the minimum price which are incurred to the ticket for the…

Answered: Contribution Margin = Ticket price -…

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Contribution Margin = Ticket price - Variable costs $10.99 None of these answers are correct $100 O $27.33 O $50.01

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15E: Ethical Behavior Consider the following scenario between Dave, a printer, and Steve, an assistant in...

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Practice 1: D& F., Inc. has developed a new product, the Number Cruncher 2000 to add to its ever-expanding offerings. After doing market research, it has determined that customers would be willing to pay $140 for the NC2000. D&F seeks to earn 25% profit on the product. At present, D&F makes a similar, old style model (The NC1000) for $101.25, which sells for $130. What must the target cost be in order to earn the 25% profit that the company demands? If D&F can adjust its costs to the target cost, the company estimates that it can sell 50,000 NC2000s. What would D&F’s profit be at this point? How many of the old style NC1000s would have to be sold to reach the same profit? D&F’s head of manufacturing operations is sensitive to the attainability of the cost projections in number 1 above. He has been analyzing the production process to determine how long it takes for one of its NC1000, or NC2000 products to pass through the process. The following…
Ethical Behavior Consider the following scenario between Dave, a printer, and Steve, an assistant in the local universitys athletic department. Steve: Dave, our department needs to have 10,000 posters printed for the basketball team for next year. Heres the mock-up, and well need them in a month. How much will you charge? Dave: Well, given the costs I have for ink and paper, 1 can come in at around 5,000. Steve: Great, heres what I want you to do. Print me up an invoice for 7,500. Huts our budget. Then, when they pay you, you give me a check for 2,500. Ill make sure that you get the job. Required: CONCEPTUAL CONNECTION Is Steves proposal ethical? What should Dave do?
Q5. Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Instructions Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are P5-4A Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fi…
Im looking for assistance with question 4 (bold below), including parts a and b Practice 1: & F., Inc. has developed a new product, the Number Cruncher 2000 to add to its ever-expanding offerings. After doing market research, it has determined that customers would be willing to pay $140 for the NC2000. D&F seeks to earn 25% profit on the product. At present, D&F makes a similar, old style model (The NC1000) for $101.25, which sells for $130. What must the target cost be in order to earn the 25% profit that the company demands? If D&F can adjust its costs to the target cost, the company estimates that it can sell 50,000 NC2000s. What would D&F’s profit be at this point? How many of the old style NC1000s would have to be sold to reach the same profit? D&F’s head of manufacturing operations is sensitive to the attainability of the cost projections in number 1 above. He has been analyzing the production process to determine how long it takes for…
Hi please help with the screenshots and this follow up question 2) The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase or decrease if the proposal is implemented?
Chapter 6 RUN LIKE THE WIND PROFIT GOAL Please solve and explain the following problem "Run Like The Wind sells ceiling fans. Target profit for the year is $470,000. If each fans contribution margin is $32 and fixed costs total $222,640, what is the number of fans that must be sold to meet the company's goal?"
Q2. Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and th e ordering cost is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount
Assume that a prospect is interested in purchasing 4 tickets in a 20-game season ticket package. The prospect estimated that the sales force can close 20% of the deals after attending a game with an average of 1.5 transactions per customer. On average, those sales will be approximately $1,500. Assuming the cost of the package is $10,000, calculate the return on investment for the business. would like you to identify the following: • Total number of tickets in the ticket package? • Assuming the prospect will send 1 sales person to each game, how many tickets will they use in total for their potential customers? • How many customers will they gain using 20% as a conversion rate ? • Total number of transactions from customers ? • Total Revenue Generated ? • Return on Investment ? Explain how you arrived at your final numbers.
Please answer question 3 I have been asking for hours to get question 3 solve. my questions are using up and I am not getting the solutions I want. i am not pleased with that. i will like to have question 3 answered. 3) Briefly explain sensitivity analysis/cost-volume-profit analysis using the solutions received from the questions above? Caribo produces and markets wheelbarrows for the Caribbean market.The following are estimates relating to its 2019 budget:Selling Price---------------------------------$1000Variable cost per wheelbarrow------------$500Fixed annual cost----------------------------$150000Nett Profit (After tax)-----------------------$300000Income tax rate-------------------------------25%The mid-year review of the income statement revealed that sales were not at the expected level.For the six months of the year to June 2019, 350 units were sold at the estimated selling pricewith variable cost as planned. However, the net profit projection for 2019 would not beachieved…
1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent. $ fill in the blank 2 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent. $ fill in the blank 3 3. What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answers to the nearest dollar. 50 percent customer retention rate case: $ fill in the blank 4 75 percent customer retention rate case: $ fill in the blank 5 4. What do you conclude? If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is
PART 4: A large discount store has approached the owner of Yundt about buying 20,000 snow globes. The discount store is only willing to pay only $30 per unit. Based on quantitative factors alone, should Yundt accept the special order? Specifically, by what amount would the special-order increase or decrease profitability?
Question#2 Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Bright Night requires 55,800 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as follows: Central Glass Company: $29.00 per pound of glass. Delivery schedule: 55,800 (620 lbs. x 90 days) pounds at the beginning of July to last for 3 months. Ithaca Glass Company: $29.15 per pound of glass. Delivery schedule: 620 pounds per working day (90 days in the quarter). Bright Night accepted Central Glass Company’s bid because it was the low-cost bid. 3. Considering only inventory financing costs, what is the additional cost per pound of Central Glass Company’s bid if the…