Problems 5-9 are based on the following information: The date is January 1, 2021 and Party Town (PT) has just won the bidding process to host a party on March 30, 2021. PT is charging their guests an admission fee of $100 per person. PT has rented a banquet hall for $900 that will accommodate up to 100 people. PT has contracted with Cathy's Catering to cater the party for $10 per person that attends (up to 100). PT estimates that they will have $5 of depreciation expense from January 1, 2021 through March 31, 2021. Do not round the units (people) to the nearest person. Round to two decimals. Additional Information: At the party, it is estimated that 80% of the guests will pay at the door in cash and 20% will pay between April 1, 2021 and April 30, 2021. The estimated party guests are 80. Cathy's Catering will be paid half their fee (Cathy requires the estimate to be the max of 100 people) on March 1, 2021 and the balance will be paid on April 15, 2021. The banquet hall will be paid in full on March 1, 2021. What is the budgeted margin of safety in sales dollars? Choose closest answer. $11,000 $5,000 $8,995 $6,995

Problems 5-9 are based on the following information: The date is January 1, 2021 and Party Town (PT) has just won the bidding process to host a party on March 30, 2021. PT is charging their guests an admission fee of $100 per person. PT has rented a banquet hall for $900 that will accommodate up to 100 people. PT has contracted with Cathy's Catering to cater the party for $10 per person that attends (up to 100). PT estimates that they will have $5 of depreciation expense from January 1, 2021 through March 31, 2021. Do not round the units (people) to the nearest person. Round to two decimals. Additional Information: At the party, it is estimated that 80% of the guests will pay at the door in cash and 20% will pay between April 1, 2021 and April 30, 2021. The estimated party guests are 80. Cathy's Catering will be paid half their fee (Cathy requires the estimate to be the max of 100 people) on March 1, 2021 and the balance will be paid on April 15, 2021. The banquet hall will be paid in full on March 1, 2021. What is the budgeted margin of safety in sales dollars? Choose closest answer. $11,000 $5,000 $8,995 $6,995

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 23P: The manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend is 600...

See similar textbooks

Similar questions

Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $60,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $54,400. She proceeds with opening the restaurant, and it begins operations on May 1. Determine the amount that Henrietta can deduct in the current year for investigating these two businesses. In your computations, round the per-month amount to the nearest dollar and use rounded amount in subsequent computations. a. The deductible amount of investigation expenses related to expansion of her hotel chain into another city? b. The deductible amount of investigation expenses related to opening a restaurant?
On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers. The candy bars sell for 3 per bar. In addition, AwakcAllNight pays Campus Grocers a 900placement fee to ensure that its candy bars are always stocked prominently by the cash register. The 900 is paid at the end of each month based on the results of random inspections of Campus Grocers by AwakcAllNight to ensure that the terms of the contract are being followed. Required: 1. Determine the transaction price for Awake AllNights revenue contract. 2. Prepare AwakeAllNights journal entries to recognize sales revenue and pay Campus Grocers the placement fee.
Assume that you are responsible for planning a banquet for your school’s accounting club. The banquet will feature a dinner, followed by a speaker. The costs associated with the banquet are as follows: Meals Beverages (coffee and tea) Use of banquet room Speaker’s fee $10 per person $1 per person $50 $100 Assume that 50 students will attend the banquet. If you want to break even on this event, how much do you need to charge for a ticket? Please explain your answer and how it relates to Chapter 19.
Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech’s football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor’s fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She estimates that each hot dog she sells will cost her $0.35. She has talked to friends at other universities who sell hot dogs at games. Based on their information and the athletic department’s forecast that each game will sell out, she anticipates that she will sell approximately 2,000 hot dogs during each game. What price should she charge for a hot dog in order to break even?
Dilly’s dream was to open a cookie shop, so she did her homework carefully be-fore finally opening “Dilly’s Delights” on July 1, 2019. Before that date she had incurred the following “soft costs” – $12,000 realtor’s fee for finding a storefront to rent, $16,000 attorneys’ fees for negotiating a lease and trademark services, $8,000 wage expense for employees during the pre-opening period, and $18,000 for pre-opening TV and other advertising. Calculate and state the exact amount that you, in preparing Dilly’s 2019 return, will enter as her 2019 start-up costs deduction. Note: There’s no useful reason to show your work here because there’s only one correct dollar-amount answer; no explanation of an incorrect answer will help.
John’s Publishing Company, a new service that writes term papers for college students, provides 11-page term papers from a list of more than 500 topics. Each paper will cost $7.50 and is written by a graduate in the topic area. John’s will pay $20,000 for the rights to all of the manuscripts. In addition, each author will receive $0.50 in royalties for every paper sold. Marketing expenses are estimated to be a total of $20,000 divided equally between Years 1 and 2, and John’s cost of capital is 11 percent. Sales are expected as follows: a. What are the ethical implications of this investment?
Kigali Club offers athletic court facilities to the public through four locations in the metropolitan area, each with 1,800 to 2,500 members. Revenue is generated from annual membership fees and hourly court fees. Kigali Club is considering changing its membership and fee structure From 1st February in an attempt to change its cash receipts. Under the new plan, only annual membership fees will be paid and members can use the courts as often as they want. The two types of membership will be: Individual $250 Family $400 The fees will be collected in advance at the time of the membership application. All new memberships will be sold under the new plan. Current memberships will be honoured until they expire. A special promotion campaign will be instituted to attract new members and to encourage current members to the new membership plan immediately. The annual fees for individuals and family memberships will be reduced to $200 and $300 respectively during the two months of…
Parokya ni Edgar Band will perform at the Eastern Visayas State University soccer field (2,500-person capacity) on February 12, 2021 during the Foundation Day Celebration of the University. The school administration has approached the Junior Philippine Institute of Accountants (JPIA) to take charge of the said event. The university will be charging JPIA for ₱120,000 for the facilities and ₱8 for each ticket sold. The organization asks you, as a member of JPIA to determine how much to charge for each ticket. The JPIA organization wants to make a profit of ₱40 per ticket sold. You assume that 1,500 tickets will be sold. a. What is the total cost of the organization if 1,500 tickets are sold? b. What price per ticket must be charged for JPIA to earn its desired profit margin? c. Suppose that on February 12, 2021, a major typhoon hit the area, bringing in two meters height of flood. Only 500 tickets are sold because most students were going to buy their tickets at the entrance of the…
With the goal of attracting as much customers as possible in the CALABARZON, Jhet Company engaged in a customer satisfaction program and marketing strategy for two of their major lines of products: (1) electrical appliances and (2) household and office furniture. All branches in the region are participating in the company’s promotions. In the customer satisfaction program, Jhet provides one-year warranty replacement of parts and labor of the electrical appliances sold. Based on past experience, the estimated warranty cost is 3% of sales. During 2021, total sales of electrical appliances was ₱7,200,000. Replacement parts and labor for warranty work totaled ₱184,000 during 2021. In the company’s marketing strategy for the household and office furniture section, customers are given a coupon for every ₱1,000 spent on these items. Customers may exchange 10 coupons plus ₱500 for a “hot and cold” water dispenser. Each water dispenser cost ₱1,200 and estimates that 40% of the coupons given to…
Mr. and Mrs. Patel, local golf stars, opened the Patel Chip‐Shot Driving Range Company on March 1, 2020. They invested $25,000 cash and received common stock in exchange for their investment. A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf clubs. The Patels leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31, and $400 was paid to members of the high‐school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, the Patels received a dividend of $1,000. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,900. The Patels thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to a net income of…
On January 1, 2018, Lego Construction Company signed a contract to build a custom garage for a customer andreceived $10,000 in advance for the job. The new garage will be built on the customer’s land. To complete thisproject, Lego must first build a concrete floor, construct wooden pillars and walls, and finally install a roof. Legonormally charges stand-alone prices of $3,000, $4,000, and $5,000, respectively, for each of these three smallertasks if done separately. How many performance obligations exist in this contract?
Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country It has two options for the event: OPTION 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food OPTION 2: Tallgrass Country Club Fixed rental cost of $3,000 A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $1,200. Tickets are expected to be $30 per person. Local freight business supporters will donate any other items required for the event. Which option provides the least amount of risk? Which option provides the greatest operating income if 600 people attend? Which option provides the greatest degree of operating leverage if 600 people attend? Which option would you choose? Why?