Southern airline inc.announced that its net income in the first quarter jumped percent to $100 million as number of passenger climbed. The airline also booked of $40 million from the sales of 2 aircraft. According to the survey of 6 analysts average estimate of the first quarter net income for the airline was $200 miliion. After earning announcement what would be the possible movement of the company's stock. Please explain with any financial concepts and theories?

Travel uses the contribution margin income statement internally. First Nation's ​first-quarter results follow. LOADING... ​(Click the icon to view the income​ statement.) First Nation's relevant range is between sales of $ 135 comma 000 and $ 780 comma 000 .

Requirements 1. Prepare contribution margin income statements at sales levels of $ 185 comma 000 and $ 680 comma 000 . ​(​Hint: Use the contribution margin​ ratio.) 2. Compute​ break-even sales in dollars. Requirement 1. Prepare the contribution margin income statement at the $ 185 000 level. ​(Round interim percentages to the nearest whole percent. Enter losses with a minus sign or​ parentheses.) First Nation Travel

1. Which is the largest source of revenue for the Federal government? California State government?

2. What item takes the largest share of the federal government spending? State government spending?

3. What is the most recent outstanding national debt of United States? Assuming a 340 million population in United States, what is the per capita debt of United States?

4. Why are taxes on common items such as gasoline and toiletries considered highly regressive? Explain clearly.

1. Which is the largest source of revenue for the Federal government? California State government?

2. What item takes the largest share of the federal government spending? State government spending?

3. What is the most recent outstanding national debt of United States? Assuming a 340 million population in United States, what is the per capita debt of United States?

4. Why are taxes on common items such as gasoline and toiletries considered highly regressive? Explain clearly.

Problem 9-23 Integrated Operating Budgets [LO2]

The Western Division of Keltic Company manufactures a vital component that is used in one of Keltic’s major product lines. The Western Division has been experiencing some difficulty in coordinating activities among its various departments, which has resulted in some shortages of the component at critical times. To overcome the shortages, the manager of the Western Division has decided to initiate a monthly budgeting system that is integrated among departments.

     The first budget is to be for the second quarter of the current year. To assist in creating the budget, the divisional controller has accumulated the following information:

Sales. Sales through the first three months of the current year were 48,000 units. Actual sales in units for January, February, and March, and planned sales in units over the next five months, are given below:

In total, the Western Division expects to produce and sell 380,000 units during the current year.

Direct Materials. Two different materials are used in the production of the component. Data regarding these materials are given below:

     Material No. 226 is sometimes in short supply. Therefore, the Western Division requires that enough of the material be on hand at the end of each month to provide for 60% of the following month’s production needs. Material No. 301 is easier to obtain, so only 30% of the following month’s production needs must be on hand at the end of each month.

Direct Labour. The Western Division has three departments through which the components must pass before they are completed. Information relating to direct labour in these departments is given below:

Direct labour is adjusted to the workload each month.

Manufacturing Overhead. The Western Division manufactured 48,000 components during the first three months of the current year. The actual variable overhead costs incurred during this three month period are shown below. The Western Division’s controller believes that the variable overhead costs incurred during the last nine months of the year will be at the same rate per component as experienced during the first three months.

     The actual fixed manufacturing overhead costs incurred during the first three months totalled $1,287,000. The Western Division has budgeted fixed manufacturing overhead costs for the entire year as follows:

Finished Goods Inventory. The desired monthly ending finished goods inventory is 20% of the next month’s estimated sales. The Western Division has 6,000 units in finished goods inventory on March 31.

Required:
1. Prepare a production budget for the Western Division for the second quarter ending June 30. Show computations by month and in total for the quarter.

   2. Prepare a direct materials purchases budget for each type of material for the second quarter ending June 30. Again show computations by month and in total for the quarter.

3. Prepare a direct labour budget for the second quarter ending June 30. This time it is not necessary to show monthly figures; show quarterly totals only. Assume that the workforce is adjusted as work requirements change. (Round "Per Unit" answers to 2 decimal places.)

   4. Assume that the company plans to produce a total of 380,000 units for the year. Prepare a manufacturing overhead budget for the nine-month period ending December 31. (Do not compute a predetermined overhead rate.) Again, it is not necessary to show monthly figures. (Round Variable manufacturing overhead rate per unit to 2 decimal places.)

1. Which of the following statements is true?

A. Positive externalities lead to over production in the free market

B. The government may subsidize merit goods to increase social welfare

C. Public goods would be provided but expensive in the free market

D. The free market system maximizes consumer surplus

2. What does a deadweight social burden triangle mean?

A. Community surplus is maximized

B. Community surplus is minimized

C. The social marginal cost of the present output is greater than the social marginal benefit

D. The price of the product is minimized

3. Which of the following is not an injection into an economy?

A. Investment

B. Government spending

C. Export spending

D. Spending on imports

4. Equilibrium in an economy occurs when:

A. Planned savings equals planned taxation

B. Planned injections equals planned withdrawals

C. Planned investment is greater than planned savings

D. Injections plus withdrawals equals national income

5. The multiplier will be biggest when the marginal propensity to consume is:

A. 0.1

B. 0.2

C. 0.3

D. 0.4

Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy is producing more than potential GDP.

Your job is to create the following:

Overhead budget (for each quarter):

Variable Overhead Rate ($/hr)

Budgeted Variable Overhead

Budgeted fixed overhead without depreciation

Depreciation

Total Overhead

Selling & Administrative Budget (for each quarter)

Planned sales in dollars

Variable S & A rate (per unit sold)

Variable S & A Expense

Fixed S & A Expense without depreciation

Depreciation

Total S & A Expense

The slow spending of capital budgets by most municipalities is a national concern as it has a negative impact on
service delivery. In most cases the hockey stick phenomenon that exists (i.e. spending increases in the last six
months of the year) is a direct result of poor planning by municipalities. Going forward and to address weak
planning process, all municipalities will be required to table the following supporting documents to Council, as
part of the budget pack, when they table their budgets by 29 March 2019:
 Service Delivery and Budget Implementation Plan (SDBIP); and
 Procurement Plan.
This is also in terms of the requirements and spirit of the MFMA and its Municipal Budget and Reporting
Regulations.
Adapted: MFMA Circular No.94, Municipal Finance Management Act No.56 of 2003

1. Which of the following goods would be the most likely to be subject to a government-imposed tax?

A

Cereal

B

Bottles of alcohol, such as whiskey and gin

C

Shoes

2. Which of the following is likely to have the largest elasticity of supply?

A

The producer of vanilla ice cream

B

The producer of yachts

C

A dentist

3. Assume that as your income increases, your consumption of burgers decreases. We can assume that your income elasticity of demand for burgers is what?

A

Between 0 and 1

B

Greater than 1

C

Equal to 1

D

Negative

4. When price decreases, quantity increases. Price elasticity of demand measures how much ___________.

A

The price decreases

B

The price increases

C

The price decreases when quantity increases

D

The quantity increases when price decreases

5. Rank the following in order from the least elastic demand to most elastic:

A. Allergy medicine that is prescribed by a physician

B. Any over-the-counter allergy medicine

C. Sudafed Cold and Allergy Medicine

6. Why are the admission prices to Disneyland often discounted, but the price of concessions and souvenirs never discounted?