Question 1: forces of supply and demand determine the prices which prevail for most goods and services. Take a look again at any Supply/Demand chart. What or who is represented by the segment on the demand curve which is located below the equilibrium price? In truth, this segment represents those would like to buy the particular good if the price was lower, but can’t (or choose not to) buy the good at its currently higher price. Perhaps this is trivial for goods like lattes or services like travel to the Bahamas (it’s not a tragedy that some cannot afford a latte or a trip to Bahamas, right?), but think about other goods, such as antibiotics, or services such as education. If the market sets the price, then there will always be some who can’t quite pay the price required. Does this feature of the market system strike you as immoral? Because “the market” (forces of supply and demand) does not guarantee that everyone who needs antibiotics will get them, should the market be abandoned in favor of some other system of pricing and distributing goods and services? Why or why not? (Consider this from a Christian perspective as well, if you like.)

Question two: Think about the law of supply. It states that as prices rise, quantity supplied will rise, and as prices fall, quantity supplied will fall. Now think about the flat-screen TV market. Over the last 15 years or so, the prices have come down significantly, but there are many more flat-screen TVs produced (supplied) today than there were 15 years ago. Does this violate the law of supply? Why or why not?

Please explain in detail and give examples

1A. Look at these particular goods and determine whether it most likely describes perfect competition or monopolistic competition

1. designer dress
2. pears
3. mystery novel
4. wheat
5. milk
6. TV show
7. microwave

1B. Consider the following scenarios and describe how the monopolistic competitor would be impacted in the short run and the long run. Will there be economic profits or economic losses? What will happen to prices after entry or exit? What will economic profits be in the long run?

1. Romantic movies are less popular with the general public.
2. More people are interested in antique furniture.
3. There is much more interest in eating healthier foods.
4. Less people are listening to rock music.
5. Less people are eating at steakhouses.
6. More people are signing up for gym memberships.

1C. Which of the following industries would be described as an oligopoly?

1. Fast-food restaurants
2. Airline industry
3. Bookstore
4. Fashion boutique

For the most recent year, Camargo, Inc., had sales of $570,000, cost of goods sold of $249,870, depreciation expense of $64,900, and additions to retained earnings of $77,300. The firm currently has 24,500 shares of common stock outstanding and the previous year’s dividends per share were $1.52. Assuming a 24 percent income tax rate, what was the times interest earned ratio?

Listed below are student evaluation ratings of courses, where a rating of 5 is for excellent. The ratings were obtained at the University of Texas at Austin and it is normally distributed.

3.5 3.1 3.8 4.7 4.5 4.9 3.9 3.3 4.1 4.7 4.9 3.2 3.3 3.9 4.9 3.8 8.

Construct a 90% confidence level.

What does the confidence level tell us about the population of all college students in Texas?

Trico Company set the following standard unit costs for its single product.

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 59,000 units per quarter. The following flexible budget information is available.

During the current quarter, the company operated at 90% of capacity and produced 53,100 units of product; actual direct labor totaled 420,800 hours. Units produced were assigned the following standard costs.

Actual costs incurred during the current quarter follow.

PART 1: Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)

PART 2: Compute the fixed overhead spending and volume variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)

PART 3:  Compute the total overhead controllable variance.

Ali invested $10,000 in a fund earning 5.5% compounded monthly. He will withdraw $800 from the fund every quarter with the first withdrawal being made 2 years from now. What is the total time until the last withdrawal?

57. Your client will make twenty quarterly deposits of $5,000 into her retirement account earning 7.3% APR compounded daily. If the first deposit is made one quarter from today, how much will be in the account when the last deposited is made?

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:

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

The selling price of the beach umbrellas is $15 per unit.

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

Sales for June totaled $375,000.

3. 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.

4. 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:

5. Gilden costs $0.60 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 $39,390.

Required:

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

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

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

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

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

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

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:

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

The selling price of the beach umbrellas is $11 per unit.

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

Sales for June totaled $297,000.

3. 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.

4. 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:

5. 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 $54,920.

Required:

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

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

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

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

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

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

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 $15 per unit.

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

Sales for June totaled $465,000.

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 $0.60 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 $44,790.

Required:

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

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

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

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

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

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