2. (a) State the necessary and sufficient conditions for consumer equilibrium. (b) Choose two goods and their corresponding prices, such that the consumer is in disequilibrium, i.e., he or she gets more marginal utility from one good than from the other given the goods prices. Indicate how the consumer will change her spending habits to return to equilibrium. (c) What role does the laws/principle of diminishing marginal utility play in the process you described above? (d) Characterize as best as you can the substitution effect and the income effect on the consumer equilibrium. You may use graphs.

In Jan. 2020 Mary Jones was earning $40,000 in net income and spending $39,000 on a yearly basis. Mary Jones loses her job on April 1, 2020, and regains the same job ---at the same pay ---exactly six months later on October 1, 2020. During the six month layoff period, in the first three months, April, May and June, she earns $600 a week in EXTRA unemployment benefits -- IN ADDITION TO the $347 a week he earns, which is the average UI benefit for the workers in our state. Thus, for these 13 weeks, she earns $947 per week. In the next three months, July, August and September, she earns $347 per week in UI benefits. She and her family cut back on their spending by ten percent during the six months duration of unemployment, but then they go back to spending $39,000 on a yearly basis after he goes back to work. What is her net income level and spending level for 2020? What is his A.P.C. for the year?

In Jan. 2020 Mary Jones was earning $40,000 in net income and spending $39,000 on a yearly basis. Mary Jones loses her job on April 1, 2020, and regains the same job ---at the same pay ---exactly six months later on October 1, 2020. During the six month layoff period, in the first three months, April, May and June, she earns $600 a week in EXTRA unemployment benefits -- IN ADDITION TO the $347 a week he earns, which is the average UI benefit for the workers in our state. Thus, for these 13 weeks, she earns $947 per week. In the next three months, July, August and September, she earns $347 per week in UI benefits. She and her family cut back on their spending by ten percent during the six months duration of unemployment, but then they go back to spending $39,000 on a yearly basis after he goes back to work. What is her net income level and spending level for 2020? What is his A.P.C. for the year?

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $12 per unit.

All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $264,000.

The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.

Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

Gilden costs $0.80 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $48,920.

Calculate the estimated sales, by month and in total, for the third quarter.

Calculate the expected cash collections, by month and in total, for the third quarter.

Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.

Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.

Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.

Boxer Company plans to sell 500,000 units of finished product in July 20x1. Management (1) anticipates a growth rate in sales of 10% per month thereafter and (2) desires a monthly ending finished-goods inventory (in units) of 80% of the following month's estimated sales. There are 400,000 completed units in the June 30, 20x1 inventory.
Each unit of finished product requires four pounds of direct material at a cost of $1.90 per pound. There are 2,000,000 pounds of direct material in inventory on June 30, 20x1.

Required:
Prepare a production budget for the quarter ended September 30, 20x1. Note: For both part "A" and part "B" of this problem, prepare your budget on a quarterly (not monthly) basis. Independent of your answer to part "A," assume that Boxer plans to produce 1,280,000 units of finished product for the quarter ended September 30. If the firm desires to stock direct materials at the end of this period equal to 25% of current production usage, compute the cost of direct material purchases for the quarter.

Prepare a production budget for the quarter ended September 30, 20x1. Note: Prepare your budget on a quarterly (not monthly) basis.

Independent of your answer to part "A," assume that Boxer plans to produce 1,280,000 units of finished product for the quarter ended September 30. If the firm desires to stock direct materials at the end of this period equal to 25% of current production usage, compute the cost of direct material purchases for the quarter.

For the following description of​ data, identify the​ W's, name the​ variables, specify for each variable whether its use indicates it should be treated as categorical or​quantitative, and for any quantitative variable identify the units in which it was measured​ (or note that they were not​ provided). Specify whether the data come from a designed survey or experiment. Are the variables time series or​ cross-sectional? Report any concerns you have as well.

An electronics manufacturerelectronics manufacturer wants to know what college students think about how peoplehow people

access the Internetaccess the Internet. They ask you to conduct a survey that asks​ students, "Do you think there will be more

smartphonessmartphones or tabletsor tablets used toused to access the Internet in​ 2025?" and​ "How likely are you to

use a tablet as your main Internet link in the next 10​years?" (scale of 1equals=not at all likely to 5equals=very ​likely).

Who was​ measured?

A. The tabletstablets

B. The college students

C. The electronics manufacturerelectronics manufacturer

D. This information is not given.

What was​ measured? Select all that apply.

A. The likelihood of using a tablet

B. The cost of how peoplehow people access the Internet

C. Number of college students

D. The opinion about how peoplehow people access the Internet in 2025

When were the measurements​ taken?

A. Last year

B. In 2025

C. Recently

D. This information is not given.

Where were measurements​ taken?

A. Through the mail

B. At the electronics manufacturerelectronics manufacturer

C. At the college

D. This information is not given.

Why were the measurements​ taken?

A.The electronics manufacturerelectronics manufacturer wants to know what college students think.

B. The electronics manufacturerelectronics manufacturer wants to know about how people access the Internet.

C.The college students want to know about how people access the Internet

D. This information is not given.

How were the measurements​ taken?

A. The data was provided by the college.

B. By observation

C. A survey

D. This information is not given.

Specify the categorical variables for this problem. Select all that apply.

A. The likelihood of using a tablet

B. The opinion about how people access the Internetin 2025

C. The number of years until 2025

D. The cost of how peoplehow people access the Internet

E.Number of college students

F. There are no categorical variables.

Specify the quantitative variables and identify the units for this problem. Select all that apply.

A. The likelihood of using a tablet​; the units are not specified

B. The opinion about how people access the Internet in​ 2025; the units are not specified

C. Number of college​ students; the units are students

D. The number of years until​ 2025; the units are years

E. The cost of how peoplehow people access the Internet​;the units are not specified

F. There are no quantitative variables.

Specify whether the data come from a designed survey or experiment.

A. Designed survey

B. Experiment

C. This information cannot be determined by the given data.

Are the variables time series or​ cross-sectional?

Time series

​Cross-sectional

Neither

Specify any concerns. Select all that apply.

A. The data collection was done incorrectly.

B. There are too many categorical variables.

C. The data sample size was too small.

D. There are no specific concerns.

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered.

Projected sales in units: 1,690 cases

Selling price per case: $240

Inventory at the beginning of the quarter: 150 cases

Target inventory at the end of the quarter: 100 cases

Direct labor hours needed to produce one case: 2 hours

Direct labor wages: $10 per hour

Direct materials cost per case: $8

Variable manufacturing overhead cost per case: $6

Fixed overhead costs for the upcoming quarter: $220,000

a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units.

Budgeted Sales( in dollars ): ________

Planned Production ( In cases ): _______

b. What is Mercury's budgeted variable manufacturing cost per case?

Total variable cost per case: _______

c. Prepare Mercury's manufacturing cost budget.

Variable Manufacturing costs:

_______

_______

_______

_______

Total variable manufacturing costs: ____

Total cost of finished goods manufactured: ______

d. What is the projected ending value of the Inventory account?

records show that 3.8% of the fuses delivered to an arsenal are defective. in a random sample of 150 fuses, what is the probability that the number of defective fuses is:

a.) less than 5

b.) more than 10

c.) between 5 and 10

The quarterly returns for a group of 59 mutual funds with a mean of 3.8​% and a standard deviation of 6.9​%

can be modeled by a Normal model. Based on the model

​N(0.038,0.069​), what are the cutoff values for the

a) highest 10​% of these​ funds?

​b) lowest 30​%?

​c) middle 20​%?

​d) highest 70​%?