Problem 11-5 (Algo)Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows fromhistory that an average of 20 customers (with a standard deviation of 10) cancel their reservation or do not show for the flight. Revenuefrom a ticket on the flight is $100. If the flight is overbooked, the airline has a policy of getting the customer on the next available flightand giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $210. Super Discountconsiders the cost of flying the plane from New York to Los Angeles a sunk cost.By how many seats should Super Discount overbook the flight?Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places. Round your answer to the nearestwhole number.Overbook by16

Step 1:Given that, Cost of underestimating the demand (Cu) = $100 Cost of overestimating the demand…

Answered: Problem 11-5 (Algo) Next week, Super…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.3C

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Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers (with a standard deviation of 15) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $125. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-tripticket averages $250. Super Discount considers the cost of flying the plane from New York to Los Angeles at a sunk cost. By how many seats should Super Discount overbook the flight?
acct 290T On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a miscellaneous expense for supplies in order to complete a project for a VIP customer today. You notice the invoice looks a little different from other invoices that are usually processed. You know that by preparing the closing entries tomorrow, the miscellaneous expense will be set to zero for the beginning of the year. Respond to the following in a minimum of 175 words: Should you write this check today and record the expense or write the check tomorrow? How would the company be affected if the check is written and the invoice ends up being erroneous?
Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $136 to $25. To receive this special $25 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 20% penalty fare for cancellation; it estimates that about seven-tenths of 1% will cancel their reservations. The airline also estimates this special price will cause a passenger traffic increase from 400 to 900. Ryan expects revenue for the year to be 55.4% higher than the previous year. Last year, Ryan’s sales were $483,000. To receive the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $116 round trip (with no cancellation penalty). a. Calculate the percent discount Ryan is offering. (Round to the nearest hundredth percent.) b. Calculate the percent passenger travel will increase. c. Calculate the sales for new year. d. Calculate Janice’s loss if she cancels one round-trip flight. e. Approximately how many more cancellations can…
PROBLEM 5Carla Maloney is a waitress who regularly receives $80 each week in tips and works 40 hours each week. The minimum gross weekly pay, excluding tips, that the restaurant could pay Maloney without violating the FLSA is
Ethics and professional conduct in business Tonya Latirno is a certified public accountant (CPA) and staff accountant for Kennedy and Kennedy, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks salary to all employees. The firms new management team announced on November 15 that a bonus equal to only one weeks salary would be made available to employees this year. Tonya thought that this policy was unfair because she and her co- workers planned on the full two-week bonus. The two-week bonus had been given for 10 straight years, so it seemed as though the- firm had breached an implied commitment. Thus, Tonya decided that she would make up the lost bonus week by working an extra six hours of overtime per week over the next five weeks until the end of the year. Kennedy and Kennedys policy is to pay overtime at 150% of straight time. Tonyas supervisor was surprised to see overtime being reported, because there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, because firm employees are on the honor system in reporting their overtime. Discuss whether the firm is acting in an ethical manner by changing the bonus. Is Tonya behaving in an ethical manner?
MN.55. Muriel has a line of credit with a limit of $10 OOO. She owed $8195 on July 1. Principal withdrawals for the period July 1 to November 30 were $3000 on August 20 and $600 on October 25. The line of credit agreement requires regular payments of$300 on the 15th day of each month. Muriel has made all required payments. Interest (including overdraft interest) is charged to the account on the last day of each month. The interest rate was 8% on July 1, but was changed to 7.5% effective September 15. Overdraft interest is 16% for any balance in excess of $10 000. (a) Calculate the interest charges on July 31, August 31, September 30, October 31, and November 30. (b) Calculate the account balance on November 30
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Knowledge Check 01Annually, Monet Corp. awards each of its employees two weeks of paid vacation, which can be carried over if not used. As of December 31, Year 1, the company determined that there are 20 vacation weeks eligible for carryover. During Year 1, compensation averaged $1,000 per week. That average compensation amount is expected to increase to $1,030 during Year 2 when that vacation time will be taken. What is the liability that should be reported for vacation pay in the company’s balance sheet prepared as of December 31, Year 1?
Problem 9-24 (LO. 3) Kristen, an independent management consultant, is based in Atlanta. During March and April of 2020, she is contracted by a national hardware chain to help implement revised human resource policies in Jackson (Mississippi) temporarily. During this period, Kristen flies to Jackson on Sunday night, spends the week at the district office, and returns home to Atlanta on Friday afternoon. The cost of returning home is $550, and the cost of spending the weekend in Jackson would have been $490. a. Presuming no reimbursement for these expenses, how much, if any, of these weekend expenses may Kristen deduct?$fill in the blank 9570f9fe1fa5079_1 b. What would your answer be if the amounts involved were reversed (i.e., the trip home would have cost $490; staying in Jackson would have been $550)? Kristen may deduct $fill in the blank 05a4acfc8fd204e_1 as weekend expenses.

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