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England Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 150 shows
the theater is also used by other production companies. The average show has a cast of 65, each earning a net average of
show. The other variable cost is a program-printing cost of $8 per guest. Annual fixed costs total $728,000.
Requirements:
1. Compute revenue and variable costs for each show.
2. Use the income statement equation approach to compute the number of shows England Productions must perform eac
3. Use the contribution margin approach to compute the number of shows needed each year to earn a profit of $5,687,50
4. Prepare England Productions' contribution margin income statement for 150 shows performed in 2012. Report only two
er ticket. There are 150 shows a year. No additional shows can be held as
each earning a net average of $340 per show. The cast is paid after each
total $728,000.
Productions must perform each year to break even.
ar to earn a profit of $5,687,500. Is this profit goal realistic? Give your reasoning.
ormed in 2012. Report only two categories of costs: variable and fixed.
The contribution margin income statement of Delectable Donuts for August 2012 follows:
DELECTABLE DONUTS
Contribution Margin Income Statement
For the Month of August 2012
Sales revenue
Variable costs:
Cost of goods sold
Marketing costs
General and administrative costs
Contribution margin
Fixed costs:
Marketing costs
General and administrative costs
Operating income
$150.000
$41.000
15.000
4.000
37.800
12.600
60.000
$90.000
50.400
$39.600
Delectable sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4, with total
donuts sells for $5, with total variable cost of $2 per dozen.
Requirements:
1. Calcuate the weighted-average contribution margin.
2. Determine Delectable's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answe
in donuts sells for $4, with total variable cost of $1.60 per dozen. A dozen custard-filled
filled donuts. Prove your answer by preparing a summary contribution.
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Arkansas Northeastern College Stark Supply Co Business Case Questions
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contra ...
Arkansas Northeastern College Stark Supply Co Business Case Questions
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contracts. First read the Stark Supply Co. (B) Case (Word) and the Exhibit 2 additional information (Excel) before addressing the questions with the Stark Supply Co.(B) case.In addition, you will need to review the Exhibit 1 additional information (Excel) presented in the (A) case.Case B: Additional InformationYou should treat February 15, 2018 as the date when you are performing your analysis and acting on the analysis (hedging or not hedging).Stark purchased SF 100,000 in the spot market on January 18, 2018 to make the deposit payment required by the cowbell purchase contract.If First Mississippi Bank is lending dollars to Stark Supply Co., Stark is borrowing from First Mississippi Bank and must repay the loan in 90 days. The amount borrowed is a present value and the amount repaid is a future value. The future value represents Stark’s dollar cost of the SF 1,000,000 payment if Stark hedges with a spot transaction.Case B: First read the “B” case, and then address these questions.The following are the questions that go with the (B) Case:1.Which would you recommend to Stark Supply Co. to hedge its foreign exchange risk, a put option or a call option? Explain your choice.(10 points)2.If Stark Supply Co. uses an exchange traded option to hedge its foreign exchange risk, why is it necessary to buy an option with maturity date no earlier than the date of the payable, May 16?Explain.(10 points)3.Consider possible spot rates for the Swiss Franc on May 16.You should consider spot rates at regular intervals. Recall that in February, you do not know the spot rate for the Swiss Franc on May 16.Rather than consider one possible future spot rate, you should consider many.Recall that you have done this for option speculation.Here the objective is hedging, but you can still do the same type of analysis in an excel spreadsheet or with a graph. You need to consider pairs of future spot rates and Total Dollar Cost given hedging with an option. Given an option hedge, calculate the Total Dollar Cost of the cowbell purchase corresponding to each possible future spot rate for the Swiss Franc.You will do these calculations for either all of the call options or all of the put options, depending on how you answered question 1 above. You should do this in an excel spreadsheet.Recall that Stark Supply’s objective is hedging, which means in this case reducing the foreign exchange risk. However, Marks still hasn’t given up on the idea of reducing the Total Dollar Cost resulting in a higher profit margin.Assume that the Swiss Franc will not depreciate to less than $0.98.This roughly corresponds to “low depreciation” defined in the (A) case.Answering this question, you need to recall from the (A) case Stark Supply Co’s track record in terms of its profitability and the competition the company faces.Make sure that your answer is consistent with how you answered questions 3, 4 and 5.You should do this comparison in an excel spreadsheet.(20 points)4. Recall Marks’ discussion of what he would like to achieve in terms of profit on the cowbell purchase. In response to Marks, Grom recommended that Stark Supply hedge with an option. Which of the options would come closest to allowing the potential for Stark Supply to achieve the desired profit of $188,900 (or Total Dollar Cost of $1,111,100) on the cowbell purchase? Explain(10 points)5. The main objective is still hedging.Which option(s) could result in a profit margin of less than 3.1% (or Total Dollar Cost of at least $1,260,000) on the cowbell purchase? Which option(s) does (do) not adequately reduce risk? Explain(10 points)Which one of the 3 options would you recommend to Marks? Explain. (10 points)Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case). Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged. (20 points)Make sure that your answer is consistent with how you answered questions 3, 4 and 5.You should do this comparison in an Excel spreadsheet.Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks' and Stark Supply Co's stated objectives. Which of the 3 do you recommend? Explain. (10 points)Hint: To correctly graph the results, for the chart type in Excel you will need to use an X Y (Scatter) with Straight Lines and Markers.Keep in mind that for your assignment, you should enter data for Total Dollar Cost and Future Spot Rate as the Y-axis and X-axis variables. To create the data, you will select hypothetical Future Spot Rates at regular intervals and then enter the corresponding Total Dollar Cost in the same row. Also, you need to make sure to include the strike prices as some of the future spot rates. On a given row Total Dollar Cost corresponds to the Future Spot Rate.6. Which one of the 3 options would you recommend to Marks?Explain(10 points)7. Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case).Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged.(20 points)8.. Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks’ and Stark Supply Co’s stated objectives.Which of the 3 do you recommend?Explain.(10 points)
University of Massachusetts Amherst Product Life Cycle Discussion
Weight Watchers brand used to be about 'dieting' and 'shedding pounds. Now, it is more about wellness, lifestyle, how indi ...
University of Massachusetts Amherst Product Life Cycle Discussion
Weight Watchers brand used to be about 'dieting' and 'shedding pounds. Now, it is more about wellness, lifestyle, how individuals define their 'ideal of beauty, among other things. The Product Life Cycle is a term that explains how concepts like weight loss and associated services might grow in popularity (and sales) and mature (many companies enter the market; sales for all companies peak). Taking this all into consideration, compose a post that responds to the following prompts:
Visit the new WW website and read these articles from CNN Business and Fast Company. Identify and describe the external forces (i.e., societal norms/values, consumer preferences and mindset shifts, competitive offerings (including new ways of seeing health, etc.) that caused 'diet programs' to go into the decline stage.
What does 'repositioning' mean? Why did WW 'reposition' and rebrand WW? Include the new name and slogan in your post. What types of associations did they want potential consumers to have regarding the brand? Examples might relate to wellness and a typical user of the services.
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Frozen Novelties
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Bluetooth Scale
ACT 4494 Troy University US Individual Income Tax Return Form 1040 Paper
I'll provide a doucument and write a tax return for the informationex. Chance D. Parkman, born April 3,
1988, works at th ...
ACT 4494 Troy University US Individual Income Tax Return Form 1040 Paper
I'll provide a doucument and write a tax return for the informationex. Chance D. Parkman, born April 3,
1988, works at the local high school. On December 30, 2020, he married Destiny
Freebird. Chance and Destiny, with Destiny’s four-year-old daughter Grace and Grace’s
four-year-old best friend Winnie (who is the cutest little thing you have EVER
seen), live at 1428 Elm Street, Springfield, Ohio. Chance’s Social Security
number is 919-66-9999, Destiny’s is 923-77-9999, although Destiny never changed
her name with the Social Security Administration. Grace’s Social Security
number is 923-88-9999. Winnie does not have a Social Security number. During 2020,
Chance earned $40,000 in wages and had $3,500 withheld in federal income taxes;
both items were reported to him on his W-2. He also earned $10 in interest from
First Bank of Springfield (IL) on his savings account. This amount was reported
to him on his December 2020 bank statement. He had full year health coverage
from his employment in the Springfield City School System. Chance would like $3
to go to the Presidential Election Campaign Fund, although he has no idea what
that is. .....
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Arkansas Northeastern College Stark Supply Co Business Case Questions
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contra ...
Arkansas Northeastern College Stark Supply Co Business Case Questions
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contracts. First read the Stark Supply Co. (B) Case (Word) and the Exhibit 2 additional information (Excel) before addressing the questions with the Stark Supply Co.(B) case.In addition, you will need to review the Exhibit 1 additional information (Excel) presented in the (A) case.Case B: Additional InformationYou should treat February 15, 2018 as the date when you are performing your analysis and acting on the analysis (hedging or not hedging).Stark purchased SF 100,000 in the spot market on January 18, 2018 to make the deposit payment required by the cowbell purchase contract.If First Mississippi Bank is lending dollars to Stark Supply Co., Stark is borrowing from First Mississippi Bank and must repay the loan in 90 days. The amount borrowed is a present value and the amount repaid is a future value. The future value represents Stark’s dollar cost of the SF 1,000,000 payment if Stark hedges with a spot transaction.Case B: First read the “B” case, and then address these questions.The following are the questions that go with the (B) Case:1.Which would you recommend to Stark Supply Co. to hedge its foreign exchange risk, a put option or a call option? Explain your choice.(10 points)2.If Stark Supply Co. uses an exchange traded option to hedge its foreign exchange risk, why is it necessary to buy an option with maturity date no earlier than the date of the payable, May 16?Explain.(10 points)3.Consider possible spot rates for the Swiss Franc on May 16.You should consider spot rates at regular intervals. Recall that in February, you do not know the spot rate for the Swiss Franc on May 16.Rather than consider one possible future spot rate, you should consider many.Recall that you have done this for option speculation.Here the objective is hedging, but you can still do the same type of analysis in an excel spreadsheet or with a graph. You need to consider pairs of future spot rates and Total Dollar Cost given hedging with an option. Given an option hedge, calculate the Total Dollar Cost of the cowbell purchase corresponding to each possible future spot rate for the Swiss Franc.You will do these calculations for either all of the call options or all of the put options, depending on how you answered question 1 above. You should do this in an excel spreadsheet.Recall that Stark Supply’s objective is hedging, which means in this case reducing the foreign exchange risk. However, Marks still hasn’t given up on the idea of reducing the Total Dollar Cost resulting in a higher profit margin.Assume that the Swiss Franc will not depreciate to less than $0.98.This roughly corresponds to “low depreciation” defined in the (A) case.Answering this question, you need to recall from the (A) case Stark Supply Co’s track record in terms of its profitability and the competition the company faces.Make sure that your answer is consistent with how you answered questions 3, 4 and 5.You should do this comparison in an excel spreadsheet.(20 points)4. Recall Marks’ discussion of what he would like to achieve in terms of profit on the cowbell purchase. In response to Marks, Grom recommended that Stark Supply hedge with an option. Which of the options would come closest to allowing the potential for Stark Supply to achieve the desired profit of $188,900 (or Total Dollar Cost of $1,111,100) on the cowbell purchase? Explain(10 points)5. The main objective is still hedging.Which option(s) could result in a profit margin of less than 3.1% (or Total Dollar Cost of at least $1,260,000) on the cowbell purchase? Which option(s) does (do) not adequately reduce risk? Explain(10 points)Which one of the 3 options would you recommend to Marks? Explain. (10 points)Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case). Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged. (20 points)Make sure that your answer is consistent with how you answered questions 3, 4 and 5.You should do this comparison in an Excel spreadsheet.Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks' and Stark Supply Co's stated objectives. Which of the 3 do you recommend? Explain. (10 points)Hint: To correctly graph the results, for the chart type in Excel you will need to use an X Y (Scatter) with Straight Lines and Markers.Keep in mind that for your assignment, you should enter data for Total Dollar Cost and Future Spot Rate as the Y-axis and X-axis variables. To create the data, you will select hypothetical Future Spot Rates at regular intervals and then enter the corresponding Total Dollar Cost in the same row. Also, you need to make sure to include the strike prices as some of the future spot rates. On a given row Total Dollar Cost corresponds to the Future Spot Rate.6. Which one of the 3 options would you recommend to Marks?Explain(10 points)7. Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case).Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged.(20 points)8.. Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks’ and Stark Supply Co’s stated objectives.Which of the 3 do you recommend?Explain.(10 points)
University of Massachusetts Amherst Product Life Cycle Discussion
Weight Watchers brand used to be about 'dieting' and 'shedding pounds. Now, it is more about wellness, lifestyle, how indi ...
University of Massachusetts Amherst Product Life Cycle Discussion
Weight Watchers brand used to be about 'dieting' and 'shedding pounds. Now, it is more about wellness, lifestyle, how individuals define their 'ideal of beauty, among other things. The Product Life Cycle is a term that explains how concepts like weight loss and associated services might grow in popularity (and sales) and mature (many companies enter the market; sales for all companies peak). Taking this all into consideration, compose a post that responds to the following prompts:
Visit the new WW website and read these articles from CNN Business and Fast Company. Identify and describe the external forces (i.e., societal norms/values, consumer preferences and mindset shifts, competitive offerings (including new ways of seeing health, etc.) that caused 'diet programs' to go into the decline stage.
What does 'repositioning' mean? Why did WW 'reposition' and rebrand WW? Include the new name and slogan in your post. What types of associations did they want potential consumers to have regarding the brand? Examples might relate to wellness and a typical user of the services.
Read about the types of brand strategies in this article from Willow Marketing. Which is WW? House of brands, branded house, or hybrid? Use the following information from the WW website to support your claim:
Frozen Novelties
Cheese
Bluetooth Scale
ACT 4494 Troy University US Individual Income Tax Return Form 1040 Paper
I'll provide a doucument and write a tax return for the informationex. Chance D. Parkman, born April 3,
1988, works at th ...
ACT 4494 Troy University US Individual Income Tax Return Form 1040 Paper
I'll provide a doucument and write a tax return for the informationex. Chance D. Parkman, born April 3,
1988, works at the local high school. On December 30, 2020, he married Destiny
Freebird. Chance and Destiny, with Destiny’s four-year-old daughter Grace and Grace’s
four-year-old best friend Winnie (who is the cutest little thing you have EVER
seen), live at 1428 Elm Street, Springfield, Ohio. Chance’s Social Security
number is 919-66-9999, Destiny’s is 923-77-9999, although Destiny never changed
her name with the Social Security Administration. Grace’s Social Security
number is 923-88-9999. Winnie does not have a Social Security number. During 2020,
Chance earned $40,000 in wages and had $3,500 withheld in federal income taxes;
both items were reported to him on his W-2. He also earned $10 in interest from
First Bank of Springfield (IL) on his savings account. This amount was reported
to him on his December 2020 bank statement. He had full year health coverage
from his employment in the Springfield City School System. Chance would like $3
to go to the Presidential Election Campaign Fund, although he has no idea what
that is. .....
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