Each year for the past six years, Caesars Entertainment Corporation has issued a Corporate Citizenship Report that details the results of its sustainability efforts, Various highlights from Caesars’ 2014–2015 sustainability report include the following list. a. In 2014, Caesars Foundation committed to an initial gift of $200,000 to the Cleveland Clinic Lou Ruvo Center for Brain Health. b. In Las Vegas alone, Caesars launders around 24,000 pounds per day including bedding, towels, restaurant linens, and valet uniforms. Caesars has invested in an efficient laundry facility. The typical laundry load size for Caesars is 250 pounds as compared to 120–125 pounds per load in commercial laundries, enabling Caesars to use less water, energy, and detergent. c. Hours volunteered by Caesars’ employees in their communities increased from 148,080 hours in 2011 to 199,127 hours in 2014, d. Caesars Foundation has provided 56 vans to Meals on Wheels over its long-time partnership with the non-profit organization. e. Caesars’ employee injury rate per 100 employees decreased from 3.26 in 2011 to 2.24 in 2014. f. Caesars retrofitted heating and cooling systems in four of its Nevada properties in 2014 to increase energy efficiency. g. Caesars increased the amount of waste it diverted from landfills by 44.28% in 2014 as compared to 2007. h. Out of eleven members in total, the number of females on Caesars’ board of directors in 2012 through 2014 was zero. i. Caesars’ employee health plan experienced a 2.2% decrease in costs from 2011 to 2014 and saved Caesars millions of dollars. j. Caesars’ greenhouse gas emissions decreased by 22.57% in 2014 as compared to 2007. k. In 2014, Caesars’ housekeepers collected more than 100,000 pounds of soap and toiletries to distribute to impoverished families. l. Caesars adopted a new corporate anti-money-laundering policy and program in 2014. The company hired a full-time senior manager to ensure that this anti-money-laundering policy is embedded throughout the corporation through training, communications, and risk assessments. m. Caesars organizes over 15,700 meetings, gatherings, and private events at its venues each year. It has committed to “Responsible Meeting” principles that include paperless online event menus and billing; energy-efficient heating and cooling; china and linen offered in place of disposable plates, cups, and napkins; and water preset on tables only if requested. n. $2.9 million was gifted to local communities through the Caesars Foundation in 2014. ○. Caesars Foundation has given more than $500,000 to support Teach for America since 2010. p. Caesars’ water use per 1,000 square feet increased by 2.3% in 2014 as compared to 2013. q. Caesars’ consumption of fossil fuel-based energy decreased 21.35% in 2014 as compared to 2007. r. The employee turnover rate at Caesars increased from 13.80% in 2011 to 21.49% in 2014. s. Total number of employees trained in Responsible Gaming at Caesars increased from 33,345 in 2011 to 53,825 in 2014. t. Caesars’ water consumption per air-conditioned 1,000 square feet decreased by 16.64% as compared to 2008. u. LEED certification was achieved for all newly built and expanded properties owned by Caesars since 2011. v. Caesars increased overall corporate spending on goods or services provided by minority- and women-owned or disadvantaged business enterprises to its highest spending level. w. The total dollars invested in communities by the Caesars Foundation and its employees (including value of volunteer hours) was $86.9 million in 2011. In 2014, that total dollar amount was $74.53 million. Requirements 1. Categorize each of the Caesars sustainability results as primarily environmental, social, or economic. 2. Can any of the listed sustainability results have an impact on a second category? Go back through the list and select a second sustainability category ( environmental, social, or economic ) for as many of the sustainability results as you can. 3. Combining your results from Requirements 1 and 2, what conclusions can you draw about sustainability initiatives at Caesars and in business in general?

Basuras Waste Disposal Company has a long-term contract with several large cities to collect garbage and trash from residential customers. To facilitate the collection, Basuras places a large plastic container with each household. Because of wear and tear, growth, and other factors, Basuras places about 200,000 new containers each year (about 20% of the total households). Several years ago, Basuras decided to manufacture its own containers as a cost-saving measure. A strategically located plant involved in this type of manufacturing was acquired. To help ensure cost efficiency, a standard cost system was installed in the plant. The following standards have been established for the products variable inputs: During the first week in January, Basuras had the following actual results: The purchasing agent located a new source of slightly higher-quality plastic, and this material was used during the first week in January. Also, a new manufacturing process was implemented on a trial basis. The new process required a slightly higher level of skilled labor. The higher- quality material has no effect on labor utilization. However, the new manufacturing process was expected to reduce materials usage by 0.25 pound per container. Required: 1. CONCEPTUAL CONNECTION Compute the materials price and usage variances. Assume that the 0.25 pound per container reduction of materials occurred as expected and that the remaining effects are all attributable to the higher-quality material. Would you recommend that the purchasing agent continue to buy this quality, or should the usual quality be purchased? Assume that the quality of the end product is not affected significantly. 2. CONCEPTUAL CONNECTION Compute the labor rate and efficiency variances. Assuming that the labor variances are attributable to the new manufacturing process, should it be continued or discontinued? In answering, consider the new processs materials reduction effect as well. Explain. 3. CONCEPTUAL CONNECTION Refer to Requirement 2. Suppose that the industrial engineer argued that the new process should not be evaluated after only one week. His reasoning was that it would take at least a week for the workers to become efficient with the new approach. Suppose that the production is the same the second week and that the actual labor hours were 9,000 and the labor cost was 99,000. Should the new process be adopted? Assume the variances are attributable to the new process. Assuming production of 6,000 units per week, what would be the projected annual savings? (Include the materials reduction effect.)

Sunny Nights Inc. is completely powered by the city power grid, but management is considering switching fuel sources in an effort to improve the publics perception of the companys corporate social responsibility. Within the next five years, management wants the company to be completely solar powered and to market this change through company advertising. Upon consulting with Sunny Nights, you have determined that an appropriate course of action is to include this CSR activity as a strategic objective on the companys current balanced scorecard. a. Determine the appropriate performance perspective for the CSR strategic objective. b. Suggest one possible performance metric for the objective. c. Determine an appropriate yearly performance target for the performance metric.

The Tech Student Government Association (SGA) has several campus projects it undertakes each year and its primary source of funding to support these projects is a T-shirt sale in the fall for what is known as the “orange effect” football game (with orange being one of Tech’s colors). The club’s publicized (media) objective is for everyone in the stadium to wear orange. The club’s financial goal is to make a profit of $150,000, but in order to have a significant number of fans buy the shirts and wear them to the game, it doesn’t want to price the T-shirts much more than $6. The stadium seats 62,000 fans, and the SGA would like to sell approximately 45,000 orange T-shirts to achieve the desired orange effect, which it’s relatively confident it can do. It will cost$100,000to purchase, silk-screen print, and ship this many T-shirts. The SGA sells the shirts through three sources: online, the two Tech bookstores, and a local independent bookstore. While the bookstores don’t expect to share…

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?

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 clubs. It has two options for the event: OPTION 1: Crestview Country Cluba. Fixed rental cost of $1,000b. $12 per person for food OPTION 2: Tallgrass Country Cluba. Fixed rental cost of $3,000b. 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 $800. Tickets are expected to be $30 per person. Local freight businesssupporters will donate any other items required for the event. a) Which option provides the least amount of risk? b) Which option provides the greatest operating income if 600 people attend? c) Which option provides the greatest degree of operating leverage if 600 people attend? d) Which option would you choose? Why?

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…

Jackson County Senior Services is a nonprofit organization devoted to providing essential ser-vices to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization’s finances and considers the net operating income of $5,000 last year to be razor-thin. (Last year’s results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program. The depreciation in housekeeping is for a…

A manufacturing company has determined that it will need $600,000 in 6 years for a new roof on its southeastern regional warehouse. A sinking fund is established for the roof at 3.6% compounded semiannually. What equal payments (in $) are required every 6 months to accumulate the needed funds for the roof? (Round your answer to the nearest cent.)

In February 2021, Culverson Company began developing a new software package to be sold to customers. The software allows people to enter health information and daily eating and exercise habits to track their health status. The project was completed in November 2021 at a cost of $800,000. Of this amount, $300,000 was spent before technological feasibility was established. Culverson expects a useful life of two years for the new product and total revenues of $1,500,000. Determine the amount that Culverson should capitalize as software development costs in 2021.

The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $69,000 of new equipment each year and wants to begin a fund to purchase a $619,000 piece of property for club expansion. The club manager is concerned about the club’s capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements. CORTEZ BEACH YACHT CLUB Statement of Income (Cash Basis) For the Year Ended October 31 Year 9 Year 8 Cash revenues Annual membership fees $ 900,000 $ 619,000 Lesson and class fees 492,700 379,000 Miscellaneous 5,900 4,900 Total cash received $ 1,398,600 $ 1,002,900 Cash costs Manager’s salary and benefits $ 91,000 $ 91,000 Regular…

The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $64,000 of new equipment each year and wants to begin a fund to purchase a $614,000 piece of property for club expansion. The club manager is concerned about the club’s capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements. CORTEZ BEACH YACHT CLUB Statement of Income (Cash Basis) For the Year Ended October 31 Year 9 Year 8 Cash revenues Annual membership fees $ 850,000 $ 614,000 Lesson and class fees 486,200 374,000 Miscellaneous 5,400 4,400 Total cash received $ 1,341,600 $ 992,400 Cash costs Manager’s salary and benefits $…

Alert Inc. is a Canadian company that is specialized in the design and manufacturing of intelligent alert systems for seniors. The company sold 20,000 switches at $50 per unit in 2021, spent $20,000 for marketing campaigns, $150,000 for electricity, $250,000 for salaries, $300,000 for alert components, $10,000 for staff training, and $24,000 for rent. The company had a depreciation allowance of $10,000, a bank loan of $100,000 at an annual simple interest rate of 5% and an income tax rate of 25%. At the end of 2021, Alert Inc. possessed $320,000 as cash, $100,000 as inventory, $600,000 as equipment, $100,000 as accounts receivable and $300,000 as accounts payable. List all special costs, semi-variable and direct variable costs of the company in 2021. Produce the income statement of the company in 2021. Complete the balance sheet of the company in 2021 partially provided below. (Figure 1) Complete the cash flow statement of the company in 2021 partially provided below. (Figure 2) How…

Solution Summary: The author explains the three bottom-line pillars of the sustainability guidelines: economic, social, and environmental.

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