please show all working out

thanks!

Question 1

Reconstruct the calculations to do with breakeven from Week 1 Workshop Exercise Question 1 parts a,

b and c for the firm Breathtaking Cruises. Assume there will still be three cruise trips on a daily basis if

you are asked in the Numerical Quiz to come.

(a) Calculate the breakeven passenger numbers for each of the three named cruise (Scenic, Farming and

Dolphin).

(b) Calculate the weekly contribution margins for Breathtaking Cruises when all three cruises are run on a daily basis.

(c) Calculate the breakeven number of weeks for Breathtaking Cruises to operate.

Question 2

B2: 2 marks [word limit: maximum 80 words]

Someone has kindly done the calculations and determined the following when determining whether to make or buy this new line of product item Pink fluorescent pen:

At 6,695 units, the relevant costs to make Pink fluorescent pen are $139,128 while the price to buy is

$132,226.

At 10,695 units, the relevant costs to make Pink fluorescent pen are $204,328 while the price to buy

is $211,226.

That the point of indifference to make or buy Pink fluorescent pen is 8,695 units.

Explain what these calculated relevant costs and the point of indifference convey to the business owner

at the different units of volume (at 6,695, 8,695 and 10,695 units).

Question 3

Breathtaking Cruises specialises in offering half-day cruises around the Marlborough Sounds from Picton in South Island. Breathtaking Cruises currently offers three such cruises: Marlborough Scenic (Scenic), Seafood Sea-Farming (Farming), and Dolphin Swimming and Watching (Dolphin). Each cruise has a slightly different duration and price and incurs the following cost estimates: Cruise information Scenic Farming Dolphin Departure Time and Days 9am 1pm 1:30pm everyday everyday everyday Duration 312 hours 312 hours 4 hours Price per passenger $ 105 $ 165 $ 175 Cost estimates for each cruise trip Scenic Farming Dolphin Beverage and snack (varies by cruise) $ 5 $ 55 $ 5 Wetsuits and snooker gear $ 0 $ 0 $ 40 Operating costs per cruise trip $ 575 $ 575 $ 575 (excluding labour costs) Labour costs per cruise trip 1 skipper 1 skipper 1 skipper (on hourly rate**) and 1 crew and 2 crew and 2 crew **The skipper is paid at the hourly rate of $150 per hour, while each crew is paid at $100 per hour. The working hours are as per the advertised cruise duration. Annual Costs for Breathtaking Cruises Pamphlets for hotels/motels/tourists $18,000 Advertising $36,000 Cruise director (half-time) $ 105,000 Admin staff (part-time) $36,000 Occupancy costs and utilities for tour booth $66,000 Telephone and Internet costs $10,800 Boat docking costs $25,200 $297,000 (a) Is it true that a regression model will always produce better results when more variables are added to the model? Explain the reasoning behind this notion and which regression statistics is/are affected. (b) Explain which one of the below two is a better model for predicting y, and justify how you came to that conclusion based on the regression results provided. SET #1 Regression Statistics R Square 0.741895522 Adjusted R Square 0.706699456 Observations 26 SET #2 Regression Statistics R Square 0.744278747 Adjusted R Square 0.695569937 Observations 26 Intercept X1 X2 Coefficients P-value 189.242169684 0.007376842 3.802529966 5.965E-06 4.510172368 0.000223761 Intercept X1 X2 X3 Coefficients P-value 47.968280581 0.416053996 3.220303910 2.2181E-05 4.665514514 0.000347047 0.727686438 0.181404126 X4 -1.991154166 0.174486973 XS -0.483188623 0.789992130 Breathtaking Cruises specialises in offering half-day cruises around the Marlborough Sounds from Picton in South Island. Breathtaking Cruises currently offers three such cruises: Marlborough Scenic (Scenic), Seafood Sea-Farming (Farming), and Dolphin Swimming and Watching (Dolphin). Each cruise has a slightly different duration and price and incurs the following cost estimates: Cruise information Scenic Farming Dolphin Departure Time and Days 9am 1pm 1:30pm everyday everyday everyday Duration 312 hours 312 hours 4 hours Price per passenger $ 105 $ 165 $ 175 Cost estimates for each cruise trip Scenic Farming Dolphin Beverage and snack (varies by cruise) $ 5 $ 55 $ 5 Wetsuits and snooker gear $ 0 $ 0 $ 40 Operating costs per cruise trip $ 575 $ 575 $ 575 (excluding labour costs) Labour costs per cruise trip 1 skipper 1 skipper 1 skipper (on hourly rate**) and 1 crew and 2 crew and 2 crew **The skipper is paid at the hourly rate of $150 per hour, while each crew is paid at $100 per hour. The working hours are as per the advertised cruise duration. Annual Costs for Breathtaking Cruises Pamphlets for hotels/motels/tourists $18,000 Advertising $36,000 Cruise director (half-time) $ 105,000 Admin staff (part-time) $36,000 Occupancy costs and utilities for tour booth $66,000 Telephone and Internet costs $10,800 Boat docking costs $25,200 $297,000 (a) Is it true that a regression model will always produce better results when more variables are added to the model? Explain the reasoning behind this notion and which regression statistics is/are affected. (b) Explain which one of the below two is a better model for predicting y, and justify how you came to that conclusion based on the regression results provided. SET #1 Regression Statistics R Square 0.741895522 Adjusted R Square 0.706699456 Observations 26 SET #2 Regression Statistics R Square 0.744278747 Adjusted R Square 0.695569937 Observations 26 Intercept X1 X2 Coefficients P-value 189.242169684 0.007376842 3.802529966 5.965E-06 4.510172368 0.000223761 Intercept X1 X2 X3 Coefficients P-value 47.968280581 0.416053996 3.220303910 2.2181E-05 4.665514514 0.000347047 0.727686438 0.181404126 X4 -1.991154166 0.174486973 XS -0.483188623 0.789992130