Suppose that the pharmaceutical rm Merck is deciding whether to develop a new diagnostic procedure that can detect early-stage Alzheimer's disease more accurately than existing tests. Developing this technology would require an up-front fixed cost FC > 0. If Merck develops the technology, it can screen Q patients for Alzheimer's at the variable cost VC(Q) = 20Q. Merck estimates that market demand for the procedure would be p(Q) = 80 - (1/10)Q

a. Suppose that other companies can quickly copy Merck's procedure as soon as it is developed so that the market for medical tests will become perfectly competitive. If Merck develops the procedure, what are the equilibrium price pc and quantity Qc? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

b. Now suppose that, if Merck develops the procedure, it will receive a patent that allows it to operate as a uniform-pricing monopolist. In this case, if Merck develops the procedure, how many patients will it screen (Qm), and what will it charge (pm)? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

c. Now suppose that, if Merck develops the procedure, it is legally permitted (and able) to engage in perfect price discrimination. If Merck develops the procedure, what are its optimal quantity Qppd , revenue R(Qppd ), and variable costs VC(Qppd )? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

d. Suppose that FC = 5000. Using your answers above, compute consumer surplus, producer surplus, and total surplus under each of the following policies:

i. No patent protecting Merck's innovation (as in part a).

ii. A patent letting Merck operate as a uniform-pricing monopolist (as in b).

iii. Legal permission for Merck to engage in perfect price discrimination (as in c).

(If Merck develops the procedure, make sure to subtract FC from the producer surplus.)

If we are trying to maximize total surplus, which of these policies is best? If we are instead trying to maximize consumer surplus, which policy is best?

Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 1,050 units were produced. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.)The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost $170 each. Each kayak will use two kinds of labor—2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $15 per hour, and the type II are paid $12 per hour.

Manufacturing overhead is budgeted at $396,000 for 2020, broken down as follows.

During the first quarter, ended March 31, 2020, 1,050 units were actually produced with the following costs.

Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 1,050 units were produced. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.)

Arivat Inc. is preparing to do an IPO. As a result it now prepares its annual financial statements in accordance with IFRS. The senior accountant identified several items that were either overlooked or booked incorrectly in the past. He asks you for help with the following:

Required: i. Prepare the journal entries in 2014 to correct the accounting records where necessary, assuming that the 2014 accounts have not been closed. [Note: this means that any error/omission that relates only to the 2014 fiscal year can be corrected in the 2014 accounts]

ii. Identify the type of change for each item Accounting issues

a. At the beginning of 2012, the company purchased a machine for $450,000 (residual value of $45,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation but failed to deduct the residual value in calculating the depreciation base for 2012, 2013, and 2014

b. The December 31, 2013 accrual for salaries was overstated by $36,000. [Assume the accrual was not reversed on January 1, 2014]

c. A tax lawsuit that involved the year 2012 was settled late in 2014. It was determined that the company owed an additional $73,000 in taxes related to 2012. The company did not record a liability in 2012 or 2013, because the possibility of losing was considered remote. The company charged the $73,000 to retained earnings in 2014 as a correction of a prior year’s error.

d. Arivat Inc. purchased another company early in 2010 and recorded goodwill of $450,000. They amortized $22,500 of goodwill in 2010 and $45,000 in each of 2011, 2012, 2013 and 2014. During this period there was no indication that goodwill had been impaired.

e. In 2014 the company changed its basis of inventory costing from FIFO to weighted average cost. The cumulative effect of the change was to decrease net income of prior years by $39,000. The company debited this cumulative effect to Retained Earnings. The weighted average cost was used in calculating income for 2014. [Notes: assume the change can be justified as resulting in more relevant financial information; ignore the effects of any correction on income tax]

f. During an inventory count in 2014 the company identified and wrote-off $87,000 that had been stolen in 2013. The loss was charged to the loss account in 2014.

5) you need the energy levels of a hydrogen atom. A series will be picked and will be asked for the energy for a particular transition. What equation would you use (if there is one) and how would you solve for it?

6) electrons are sent through an electric field and the kinematics are asked. For example is it slows down, how long does it take to stop? If it accelerates, how to find velocity? What equation(s) would you use and how would you solve for it?

7) you have an RLC circuit, it is charged up. The switch is closed and is asked for how long does it take for the current to reach a certain value. What equation would you use and how owuld you solve for it?

9) you either have a single lens or a single mirror. The things involved are focal length, the height of the object, where the object is placed, where the image will be formed, and whether it is upright or inverted. What equation would you use and how would you solve for it?

Thomson Media is considering some new equipment whose data are shown below. The equipment would be used for three years with straight-line depreciation, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, additional net operating working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC 10.0% Net investment in fixed assets (depreciable basis) $70,000 Required net operating working capital $10,000 Straight-line depreciation rate 33.333% Annual sales revenues $56,000 Annual operating costs (excl. depreciation) $30,000 Expected pre-tax salvage value $5,000 Tax rate 35.0%

options: -$7,707 -$6,089 -$6,166 -$7,246 -$7,631

Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project’s life. Revenues and other operating costs are expected to be constant over the project’s 3-year life. What is the project’s NPV? WACC 10.0% Net investment in fixed assets (depreciable basis) $70,000 Required new working capital $10,000 Straight-line deprec. rate 33.333% Sales revenues, each year $75,000 Operating costs (excl. deprec.), each year $30,000 Expected pretax salvage value $5,000 Tax rate 35.0%

do not use excel calculate, plz give step detail

Thomson Media is considering investing in some new equipment whose data are shown below. The equipment has a 3-year class life and will be depreciated by the MACRS depreciation system, and it will have a positive pre-tax salvage value at the end of Year 3, when the project will be closed down. Also, some new working capital will be required, but it will be recovered at the end of the project's life. Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box. WACC 14.0% Net investment in fixed assets (depreciable basis) $60,000 Required new working capital $10,000 Sales revenues, each year $75,000 Operating costs excl. depr'n, each year $30,000 Expected pretax salvage value $7,000 Tax rate 35.0%