Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can any one answer these accounting question? Q2-5. Thank you. Suppose that sales for Eastman Kodak were predicted to increase by 10% in 2009 and

Can any one answer these accounting question? Q2-5. Thank you. image text in transcribed
Suppose that sales for Eastman Kodak were predicted to increase by 10% in 2009 and that the cost behavior was expected to continue in 2009 as it did in 2008. Compute the predicted operating income (loss) for 2009. What assumptions were necessary to compute the predicted 2009 operating income in requirement 2? Marge Porter it the manager of Stanford's traditional Sunday Ricks. Each Sunday, a film has two showings. The admission price is deliberately set at a very low $3. She sells a maximum of 500 tickets for each showing. The rental of the auditorium is $330 and labor is $435, including $90 for Porter. Porter must pay the film distributor a guarantee, ranging from $300 to $900, or 50% of gross admission receipts, whichever is higher. Before and during the show, she sells refreshments; these sales average 12% of gross admission receipts and yield a contribution margin of 40%. On June 3. Porter screened Little Miss Sunshine. The film grossed $2,250. The guarantee to the distributor was $750, or 50% of gross admission receipts, whichever is higher. What operating income was produced for the Students' Association, which sponsored the showings? Recompute the results if the film grossed $1,400. The "four-wall" concept is increasingly being adopted by movie producers. In this plan, the movie's producer pays a fixed rental to the theater owner for, say, a week's showing of a movie. As a theater owner, how would you evaluate a "four-wall'' offer? Many churches sponsor bingo games, a tradition stemming from the time when only specific nonprofit institutions were allowed to sponsor games of chance. Reverend Justin Olds, the pastor of a new parish in Orange County, is investigating the desirability of conducting weekly bingo nights. The parish has no ball, but a local hotel would be willing to commit its hall for a lump-sum rental of $600 pet night. The rent would include cleaning, setting up and taking down the tables and chairs, and so on. A local printer would provide bingo cards in return for free advertising. Local merchants would donate door prizes. The services of clerks, callers. Security force, and others would be donated by volunteers. Admission would be $4,00 per person, entitling the player to one card; extra cards Suppose that sales for Eastman Kodak were predicted to increase by 10% in 2009 and that the cost behavior was expected to continue in 2009 as it did in 2008. Compute the predicted operating income (loss) for 2009. What assumptions were necessary to compute the predicted 2009 operating income in requirement 2? Marge Porter it the manager of Stanford's traditional Sunday Ricks. Each Sunday, a film has two showings. The admission price is deliberately set at a very low $3. She sells a maximum of 500 tickets for each showing. The rental of the auditorium is $330 and labor is $435, including $90 for Porter. Porter must pay the film distributor a guarantee, ranging from $300 to $900, or 50% of gross admission receipts, whichever is higher. Before and during the show, she sells refreshments; these sales average 12% of gross admission receipts and yield a contribution margin of 40%. On June 3. Porter screened Little Miss Sunshine. The film grossed $2,250. The guarantee to the distributor was $750, or 50% of gross admission receipts, whichever is higher. What operating income was produced for the Students' Association, which sponsored the showings? Recompute the results if the film grossed $1,400. The "four-wall" concept is increasingly being adopted by movie producers. In this plan, the movie's producer pays a fixed rental to the theater owner for, say, a week's showing of a movie. As a theater owner, how would you evaluate a "four-wall'' offer? Many churches sponsor bingo games, a tradition stemming from the time when only specific nonprofit institutions were allowed to sponsor games of chance. Reverend Justin Olds, the pastor of a new parish in Orange County, is investigating the desirability of conducting weekly bingo nights. The parish has no ball, but a local hotel would be willing to commit its hall for a lump-sum rental of $600 pet night. The rent would include cleaning, setting up and taking down the tables and chairs, and so on. A local printer would provide bingo cards in return for free advertising. Local merchants would donate door prizes. The services of clerks, callers. Security force, and others would be donated by volunteers. Admission would be $4,00 per person, entitling the player to one card; extra cards

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Electronics Data Processing Systems

Authors: WATNE

1st Edition

0130516163, 978-0130516169

More Books

Students also viewed these Accounting questions