WSM Corporation is considering offering an air shuttle service between Sao Paulo and Rio de Janeiro. It plans to offer four flights every day (excluding certain holidays) for a total of 1,400 flights per year (= 350 days × 4 flights per day). WSM has hired a consultant to determine activity-based costs for this operation. The consultant’s report shows the following.



Activity Activity Measure (cost driver) Unit Cost(cost per unit of activity)
Flying and maintaining aircraft Number of flights $ 500 per flight
Serving passengers Number of passengers $ 5 per passenger
Advertising and marketing Number of promotions $ 40,000 per promotion


WSM estimates the following annual information. With 4 advertising promotions, it will be able to generate demand for 40 passengers per flight at a fare of $150. The lease of the 60-seat aircraft will cost $2,000,000. Other equipment costs will be $1,000,000. Administrative and other marketing costs will be $600,000.



Required:

a. What annual operating income can WSM expect from this new service?

b-1. WSM is considering selling tickets over the Internet to save on commissions and other costs. It is estimated that the cost driver rate for flights would decrease by $100 as a result of Internet sales. Administrative and other marketing costs would increase by $1 million. WSM estimates that the added convenience would generate a 5 percent increase in demand. All other costs and fares would remain the same. What annual operating income can WSM expect from adopting Internet ticket sales?

b-2. Would you recommend that WSM adopt Internet ticket sales?

c. Assume that WSM management decides not to adopt the Internet strategy, regardless of your answer to requirement (b). Instead, it is now considering a plan to sell tickets at two prices. An unrestricted ticket (good for travel at any time on any day) would sell for $ 175. A discount ticket, good for reservations made in advance, would sell for $130. Management estimates that it can sell 35,000 tickets (25 per flight) at the unrestricted airfare of $175. All other data remain the same.

Ignoring the information in requirement (b), how many discounted tickets would WSM have to sell annually to earn an operating income of $3,700,000? Assume that the annual number of flights remains at 1,400 and that the discounted tickets would be evenly divided across the 1,400 flights.

Answer:

Only one individual is accountable for each deliverable/task. At least one individual is responsible for each task. (Note that some tasks may not need Consulted or Informed individuals.)

Explanation:

Each task or deliverable has a single person who is responsible for it. There is always at least one person in charge of each task.

RACI stands for responsible,  accountable, consulted and informed. A RACI chart identifies which participants will be Responsible, Accountable, Consulted, or Informed for a task, milestone, or decision. Responsible, Accountable, Consulted, and Informed is the abbreviation for RACI. An organization's operations or decision-making authorities are mapped out against all the roles or individuals in a RACI chart.

To determine the roles and responsibilities of your project teams for any task, milestone, or project deliverable, create a RACI chart. You can delineate roles and clear up ambiguities by using the RACI acronym. RACI is an acronym for accountable.

Thus, Each task or deliverable has a single person who is responsible for it.

For more details about RACI chart, click here:

https://brainly.com/question/6177865

#SPJ2

The necessary journal entries for October month are attached below in the image :

All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.

All the necessary journal entries are attached below:

Learn more about journal entries:

https://brainly.com/question/13483463

#SPJ1

A) Mean and standard deviation of this distribution :

   Mean = 10,  Std = 2.82843

B) Probability of >16 in sample will be bankrupt : 0.01444

C) Probability that exactly 14 will go bankrupt : 0.04986

D) P( x = 7, 9 ) = 0.0878

E) P( x = 7, 15 ) = 0.0757

n = 50

p = 20/100 = 1/5.

q = 4 / 5

Applying binomial distribution to determine the mean and std

A) Mean = E(x) = n * p

                        = 50 * 1/5 = 10

   Standard deviation = [tex]\sqrt{np(1-p)}[/tex]  =  [tex]\sqrt{8}[/tex]  ≈ 2.82843

B) P( x >16 )

∑[tex]50k=17P(X=k)=\sum50k=17 \binom{50}{k}( k50​ )4^{50-k} /5^{50}[/tex] =  0.01444.

C) Probability of ( x = 14 )

[tex]P(X=14)=\binom{50}{14}[/tex] *  4^36 / 5^50  ≈ 0.04986.

Applying the same formula to resolve options D and E

Hence we can conclude that the answers to your questions areas listed above:

Learn more probability : https://brainly.com/question/25870256

#SPJ1

Answer:

The answer is a

Explanation: hope this helps :)

When an individual pays the full cost of disability income insurance, a disabled employee’s benefit will be Non-taxable in full, regardless of the employee’s wage. Thus the correct answer is D.

Disability income insurance is an additional coverage created to safeguard policyholders in the event that they are unable to work as a result of an accident or illness.

When a policyholder is unable to work, disability income payments provide a monthly income to help with living expenses. When an employee pays the complete cost of disability insurance, then disabled benefits will be nontaxable in full despite of wages of employees.

Therefore, option D will be appropriate.

Learn more about disability income insurance, here:

https://brainly.com/question/8989878

#SPJ1

Answer:

b. legal

In the context of corporate social responsibility, legal responsibilities are to obey local, state, federal, and relevant international laws.

Explanation:

hope it helps

The first thing Cristina should do to create a more standards-oriented environment in her classroom is to create positive relationships with her students.

It is necessary for the teacher to be organized according to the methodologies required by the institutional standard, as standardization generates the systematization of processes so that student learning and development occurs in a similar way, without bias, for example.

Therefore, the standardization of teaching helps in conformity, structuring and systematization, essential for the formation of relationships and educational culture favorable to social, cognitive and academic development.

Find out more about educational institutions here:

https://brainly.com/question/26015261

#SPJ1

The two measures which can be used by Nando’s to assess environmental turbulence within the macro-environment are predictability and changeability.

An environmental turbulence can be defined as a measure of the rate and unpredictability of changes that occurs in a business firm's external environment.

In this context, we can infer and logically deduce that the two (2) measures which can be used by Nando’s to assess environmental turbulence within the macro-environment are predictability and changeability.

Read more on environmental turbulence here: https://brainly.com/question/20377406

#SPJ1

Answer:

the helping of the emmployee in where something is or to reach something or to get something from the back

Explanation:

Jacinda Herschel wants to buy a car this amount $15965.57 can borrow.

What is loan?

An amount of money borrowed by a person or business from a business, financial institution, or government is known as a loan.

Jacinda Herschel monthly saving (M) = $365.15

Term = 4 years loan

Interest rate = 4.65% or 0.0465

Number of months (n) = 4 years x 12

Calculation of number of month is = 48

Monthly interest rate (r) = 0.0465/12 = 0.003875

Loan amount formula as = [tex]M/r [1-(1 + r)^{-n}[/tex]

= [tex]$365.15/0.003875 [1-(1 + 0.003875)^{-48}[/tex]

[tex]= $365.15/0.003875 x (1-(1.003875)^{-48})[/tex]

= $365.15/0.003875 x [1 – 0.83057208775233]

= $365.15/0.003875 (0.16942791224767)

= $15965.57

As a result, $15965.57 is correct.

Learn more about on loan, here:

https://brainly.com/question/7299838

#SPJ1

Based on the depreciation of the equipment, the current balance would equal $0 and but it should equal $5,600.

The adjusting entry would be:
Date                        Account title                                     Debit          Credit

December 31          Depreciation expense                   $5,600

                                Accumulated depreciation                             $5,600

The current account balance would be $0 because depreciation has not yet been adjusted for.

The depreciation amount would be:

= (48,000 - 8,800) / 7

= $5,600

This amount should be credited to the Accumulated depreciation account, but debited to the Depreciation expense account as expenses usually are.

Find out more on accumulated depreciation at https://brainly.com/question/1287985.

#SPJ1

The roles of the different types of organizations in the context of the business environment include:

The different types of organizations include the matrix, functional, flat, and divisional forms.

All of these types of organizations help to structure the business and helps employees to know who to report to. In the end productivity is enhanced.

Learn moreabout the different types of organizations here:

https://brainly.com/question/24089799

#SPJ1

The correct definition for free cash flows to the firm is D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure.

Free cash flow (FCF) is the cash a company has after all the cash outflows for its operations and capital assets maintenance.

This implies that free cash flow is the available cash that a company has after making payments for its operating expenses and capital expenditures (Capital Expenditure).

A. EBITDAX (1-Tax) + Depreciation - Changes in working capital + Capital Expenditure

B. EBITDAX (1-Tax) - Depreciation - Changes in working capital - Capital Expenditure

C. EBITX (1-Tax) - Depreciation - Changes in working capital + Capital Expenditure

D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure

Thus, the correct definition for free cash flows to the firm is Option D.

Learn more about free cash flows at https://brainly.com/question/15848997

#SPJ1

Suppose that Sheffield Corp. produced and sold 4800 laptop computers during 2022. Sheffield's free cash flow is $127200.

Free cash flow

Cash provided by operating activities $137,800

Less Investment  in equipment $9120

Less Dividends $1480

Free cash flow $127200

Therefore the correct option is d. $127200.

Learn more about free cash flow here:https://brainly.com/question/735261

#SPJ1

The differences in behavior and national characteristics are : Very close

National character is the shared perceptions of personality characteristics or behaviors of a group of people, which is shared and believed amongst the people living in a geographical area.

Therefore the differences in behavior is closely related to difference in national characteristics  

Hence we can conclude that The differences in behavior and national characteristics are : Very close

Learn more about National character : https://brainly.com/question/1171548

#SPJ1

Answer:

All of the above
Explanation:

Time study

Motion study

Method study

All of the above

Reserve requirement is 10% and excess reserves are $11 million is $122.2 million. Reserve requirement is 5% and excess reserves are $13 million is  $273.6 million. Reserve requirement is 2 % and excess reserves are $7 million is $357 million.

What is money generated?

In the form of bank deposits, or the figures that show up in your account, banks produce the majority of the money that circulates in our economy.

(a) Excess reserve, the balance of the entire deposit remaining after the reserve requirement of 10% has been met. Therefore, $11 million represents 90% of the total deposit. 11+(11×10%) The entire amount of the deposit will be $12.22 million.

The money multiplier determines how much money is generated.

Money Multiplier = 1/10% of Reserve Ratio = 10

Therefore, Quantity of money generated= $12.22 million * 10 = $122.2 million.

(b) Excess reserve, the balance of the entire deposit remaining after the reserve requirement of 5% has been met. Since $13 million represents 95% of the total deposit,13+(13×5%) There will be a total deposit of $13.68 million.

The money multiplier determines how much money is generated.

Money Multiplier = 1/5 Reserve Ratio = 20

Therefore, Quantity of money generated=$13.68 million * 20 = $273.6 million.

(c) Excess reserve, the remaining balance of the total deposit after the reserve requirement of 2% has been subtracted. 98 percent of the total deposit is therefore $7 million. 17+(17×2%) Therefore, the overall deposit will be $7.14 million.

The money multiplier determines the amount of money that is produced.

Money Multiplier = 1 / Reserve Ratio = 0.5 % = 50

Therefore, Quantity of money generated=$7.14 million * 50 = $357 million

As a result, option (a)  $122.2 million (b) $273.6 million (c) $357 million is an accurate answer.

Learn more about on money generated, here:

https://brainly.com/question/1790836

#SPJ1

By agreeing to the Statement of Understanding, the consumer acknowledges that they clearly understand that they are enrolling in a plan, combined with knowing the specific plan in which they are enrolling.

Applicants and foster parents who sign a statement of understanding indicate that they have read, comprehend, and agree to abide by all laws, rules, and regulations that belong to the running of residential care.

The complete question is attached-

This ensures that the consumer is aware of the enrollment in a plan and activities associated with the plan and respective actions. It reflects that they have all the information related to the deal.

Learn more about consumer, here:

https://brainly.com/question/27773546

#SPJ1

If the company recorded revenues of $735000, expenses of $647000. Vaughn's net income for the year 2022 is: c. $88,000.

Using this formula

Net income=Revenues - Expenses

Let plug in the formula

Net income=$735,000-$647,000

Net income=$88,000

Therefore the correct option is c. $88,000.

Learn more about net income here:https://brainly.com/question/15530787

#SPJ1

Answer:

b

Explanation:

The main objective of an organisation is to achieve organisation goal.For the organisation goal to be achieved,the organisation must have passed through the objectives of management which are planning,organising,controlling and controlling.A good proper planning by an organisation is to give thier employee thier role in achieving organisation goal,control the staffs when needed, when things needs to be controlled.lack of planning might lead to the failure of the organisation goal.

The net income (loss) is -$12,300 based on the amount the owner contributed and then withdrew. Businesses would effectively report a negative net profit as a net loss on the income statement.

Calculate the Net Income Loss:

First, find the value of ending equity:

= Ending assets - liabilities

[tex]=62000-28000\\\\=34000[/tex]

Then find the beginning equity:

[tex]=25000-19000\\\\=6000[/tex]

The net income(loss) is:

= Equity - Owner's contribution + Withdrawals - Beginning Equity

[tex]=34000-44500+4200-6000\\\\=\ 12300[/tex]

When all costs—including taxes, fees, interest, and depreciation—exceed earnings for a specific time period, the result is a net loss. A net profit, usually referred to as after-tax income or net income, can be contrasted with a net loss.

A net loss can result from a variety of circumstances, including weak sales, fierce competition, ineffective marketing efforts, and higher cost of goods sold (COGS).

Therefore, the net loss is -$12,300.

Learn more about Net Loss here:

https://brainly.com/question/28390284

#SPJ3

Based on the cost of the inventory to Windsor Inc, and the FIFO method, the gross profit for the month is C. $1,520

FIFO means that the earlier goods are sold first.

210 units were left on hand which means that none of the Purchase on the 28th of January was sold.

The 15th Janaury purchase sold:
= 130 - (210 - 130)

= 50 units

The sales revenue is therefore:

= (260 + 50) x 9

= $2,790

The cost is:

= (260 x 4) + (50 x 4.60)

= $1,270

Gross profit is:

= 2,790 - 1,270

= $1,520

Find out more on FIFO at https://brainly.com/question/24137318.

#SPJ1

The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

https://brainly.com/question/14529006

#SPJ1

.

Answer:

Yes

Explanation:

my answer has to be 20 characters long lol. but yes you can

Topics that should be covered by HAZWOPER training are-

HAZWOPER training aims to provide a hazardous-free, safe and healthy environment to the workers at their workplace while doing dangerous tasks. Thus encouraging better learning, growth, and development.

This training program includes practices at the workplace to minimize the risk of exposure to danger, use of personal protective equipment to ensure safety, development of emergency plans to avoid any big injury, and study of all potential hazards.

Learn more about safety, here:

https://brainly.com/question/2964363

#SPJ1

A) The impact of the Asian economic boom on the US economy is:  The demand curve shifts to the left ( decrease in demand for US products )

B) The macro-equilibrium condition created because of the Asian economic boom is :  The aggregate supply and aggregate demand moves inwards, becomes equal ( i.e. negative macro-equilibrium )

C) The macro-equilibrium condition needs to be fixed to : Avoid inflation and decrease in GDP

D) The fiscal policy that can be used is : Decrease of Income tax

An economic boom in the Asian countries will negatively impact the demand for US products, therefore the demand curve of the US market will shift to the left. Also the macro-equilibrium condition will move inwards ( shift to the left ). fixing the negative macro-equilibrium will help the US economy avoid inflation and decrease in GDP.

Hence we can conclude that the answers to your questions are as listed above

Learn more about Economy Boom : https://brainly.com/question/26020324

#SPJ1

Answer:

Karst is a type of landscape where the dissolving of the bedrock has created sinkholes, sinking streams, caves, springs, and other characteristic features. Karst is associated with soluble rock types such as limestone, marble, and gypsum.

Answer:

A

Explanation:

..........................