The human resource department at Paula's Powerwheels is implementing a number of functional level strategies. These strategies i

Answer:

Total hours worked = 17,550 hours

Explanation:

Labour hours efficiency variance = labour efficiency variance/standard labour cost per hour

The hourly standard labour cost = $24

= 1,200/24= 50 hours

Labour variance (in hours) = Actual labour hours - Standard hours for actual units produced

The standard labour hours allowed for the production of 875 cranes is:

= 20 × 875 = 17,500 hours

Let the actual hours be "y"

50 = y - 17500

y = 50 + 17500

y= 17,550 hours

Total hours worked = 17,550 hours

Solution

1.Hotel’s cost structure          Indications in percentage(%)

Revenue                                     $ 2,000,000                          (100)

Less: Variable expenses            $ 1,300,000                            65

                                                    --------------------

Contribution margin                       $700,000                            

Less: Fixed expenses                   $560,000                            28

                                                    ---------------------

Net income                                       $140,000                            7

2.Revenue declines by 30 percent

Revenue                                     $ 1,400,000                    

Less: Variable expenses               $910,000                                                                                    

                                                   ---------------------

Contribution margin                       $490,000                  

Less: Fixed expenses                   $392,000                          

                                                    ---------------------

Net income                                       $98,000          

3.Operating leverage factor when revenue is $2,000,000    

       Operating leverage =    Contribution/ Net income

4.Operating leverage factor when increase in revenue by 25 percent  

increase in revenue by 25 percent=

increase in contribution by 25 percent=

increase in net income by 25 percent  =                                                  

       Operating leverage =    Contribution/ Net income

Answer:

The interest amounts to $1,000,000.

Explanation:

The standard format of an income statement includes:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

For this case:

EBIT equals $6,000,000.

The interest is to be determined.

Tax is calculated as 0.40.

EBITDA stands at $3,000,000.

The interest formula is: interest = [EBITDA / (1 - tax)] - EBIT

Substituting values, interest = 3000000 / 0.60 - 6000000 = -$1,000,000.

With EBIT at 6 million, the interest is $1 million, and the tax amounts to 2 million (calculated as (EBIT - interest) * 0.40).

Thus, the net income is $3 million.

Answer:

c.Internal environment

Explanation:

The internal environment encompasses the culture, members, events, and factors instrumental in influencing an organization’s decisions.

The founder leader's influence plays a significant role in shaping Organizational Culture.

Answer:

The data indicates: One flight has a total of 100 seats.

Full fare passengers, ticket cost=$150, average=56 passengers, SD=23.

Discount fare passengers, ticket cost=$100, average=88 passengers, SD=44.

(a) The question suggests optimizing total revenue per flight (one way) by potentially only taking full fare passengers, which would yield $15,000. However, historical probabilities show an average of 56 with a standard deviation of 23, thus in an ideal scenario, total full fare passengers could reach 79. That would allocate 21 tickets for discount passengers, leading to total revenues of $13,950.

(b) Now with the new constrained policy, specific seat allocations for both categories are set—44 for discount (resulting in total revenues of 44*100) and 56 for full fare (resulting in total revenues of 56*150)—both within the previously mentioned probabilities. The total revenue in this case will be 44*100+56*150 = $12,800.

(c) The difference in excess revenues between both scenarios for optimal total revenues and limited seats policy is calculated as answer (a) - answer (b) = $13,950 - $12,800 = $1,150.

(d) Realistically, this question cannot be properly answered without a clear confidence interval. Another simplifying assumption is to take the mean number of passengers as expected bookings (which can later be adjusted with provided confidence intervals). The total revenues in this scenario will come from 44*100 from discount and 56*150 from full fare passengers. This remains similar to answer (c) due to the assumption of no constraints, so optimal bookings might total 54 full fare tickets and 44 discount tickets. Worst case scenarios could involve subtracting SD from each passenger type’s mean, or for better scenarios, add SD of full fare passengers to the mean and allocate remaining seats for discount fare in order to maximize revenue.