The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 114,000 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $102.6 million in ticket sales.
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The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 114,000 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $102.6 million in ticket sales.
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- The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 114,000 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $102.6 million in ticket sales. Required: 1. What is the average price per season ticket and average price per individual game ticket sold? 2. Record the advance collection of $102.6 million in ticket sales. 3. Record the revenue recognized after the first home game is completed.Named in honor of the late Dr. F. C. “Phog” Allen, the Kansas Jayhawks’ head coach for 39 years, Allen Fieldhouse is labeled by many as one of the best places in America to watch a college basketball game. Allen Fieldhouse has a seating capacity of 16,300. Assume the basketball arena sells out all 16 home games before the season begins, and the athletic department collects $9,128,000 in ticket sales. Required: 1. What is the average price per season ticket and average price per individual game ticket sold? 2. Record the advance collection of $9,128,000 in ticket sales. 3. Record the revenue recognized after the first home game is completed.T. Boone Pickens football stadium at Oklahoma State University has a seating capacity of about 40,000. Assume the stadium sells out all six home games before the season begins and the athletic department collects $31 million in ticket sales.1. What was the average price per season ticket and average price per individual game ticket sold? (Round your answers to the nearest dollar amount.)
- A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. etc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. The maintenance cost for the first year is $150.000. Utilities are expected to average about $200,000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be 100,000 people (or 100,000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge sothat it can recover at least 6% cost of borrowing on its investment? The university expects the arena to be used for 40 years and to have no appreciable salvage value.Lerner College, a not-for-profit liberal arts college, charges the total cost of running its research library to its three academic programs: the humanities, the social sciences, and the sciences. Rent and utilities for the library space costs $30,000 per month. Salaries for the library’s employees total $275,000 per year, plus an additional 24% for benefits. The depreciation on the library's office equipment is $32,000 each year. Other library expenses – including supplies, books, subscriptions – are equal to $14,000 per month. The total cost of running the research library is allocated to each of the three academic programs based on the number of students in each of the three programs. The humanities program has 440 students; the social sciences program has 390 students; the sciences program has 260 students. The teaching staff for the social sciences program earns $650,000 per year in salaries and benefits. In addition, the social sciences program consumes $9,500 of supplies each…Demmert Production spent the following money in the current fiscal year: $5,400 on equipment yearly maintenance; $22,000 on refurbishing offices; $35,000 on improving efficiency in the shipping and receiving area; and $25,000 on installing a security system in the manufacturing plant. What is Demmert supposed to do with all of these bills?
- A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. e tc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. 1l1e maintenance cost for the first year is $150.000. Utilities arc expected to average about $200.000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be 100,000 people (or 100,000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge so that it can recover at least a 6% cost of borrowing on its investment? The university expects the arena to be used for 40 years and 10 have no appreciable salvage valueElliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?T. Boone Pickens football stadium at Oklahoma State University has a seating capacity of about 40,000. Assume the stadium sells out all four home games before the season begins and the athletic department collects $31 million in ticket sales.1. What was the average price per season ticket and average price per individual game ticket sold? (Round your answers to the nearest dollar amount.) Average price per season ticket Average price per individual game ticket 2. & 3. Record the following transactions for the ticket sales. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. Round your answers to the nearest dollar amount.) Record the advance collection of $31 million in ticket sales. Transaction General Journal Debit Credit 1 Record the…
- In 2016, the city of Abu Dhabi collected $24 million in fines from motorists because of traffic violations caught by red-light cameras. The cost of operating the system was $14.5 million. The net profit, that is, profit after operating costs, is split equally (that is, 50% each) between the city and the operator of the camera system. What will be the rate of return over a 3-year period to the contractor that paid for, installed, and operates the system, if its initial cost was $10 million and the profit for each of the 3 years is the same as it was in 2016? Should the company invest in this project at MARR of 15% per year?Atlantic University has eight schools, 350 faculty members, and 20,000 students. An analysis of the university's cost structure yielded the following annual cost estimates. The university-sustaining cost level is $20,000,000, which includes basic building costs and administrative salaries such as those of the president and the admissions officers. Committed costs at the university level increase, in the long run, by $20,000,000 for each new school added and by $1000 for each additional student enrolled. The School of Business is a school in Atlantic University. The school-sustaining cost level is $5,000,000. The area-sustaining cost level is $50,000. Committed costs in the School of Business increase, in the long run, by $200,000 for each faculty member added and by $500 for each unit of student capacity added. Planners at Atlantic University estimate that the total flexible costs per student amount to $600. (All the costs above are annual costs.) Each faculty member teaches five…A Corporation is considering to open an office in a new market area that would allow it to increase its annual sales by $1.8 million. Cost of goods sold is estimated to be 30 percent of the annual sales, and corporate overhead would be expected to increase by $180,000 not including the cost of either acquiring or leasing office space. The Corporation will also have to invest $1.5 million in office furniture, office equipment, and other up-front costs associated with opening the new office before considering the costs of owning or leasing the office space. A small office building could be purchased for its sole use by the corporation at a total price of $2.5 million, of which $500,000 is estimated for land value, and $2 million for its building value. The cost of the building would be depreciated over 30 years. The corporation is in a 30 percent tax bracket. An investor is willing to purchase the same building and lease it to the corporation for $200,000 per year for a term of 5 years,…