In: Physics
Explain Buchanan and Tullock's optimal decision rule model. Give examples of cases where rules near unanimity are optimal, where rules far from unanimity are optimal, and when it is optimal to not decide collectively.
In: Economics
Matt’s Landscaping Pty Ltd is registered for GST purposes. It accounts for GST on the accruals basis and submits its Business Activity Statements monthly. Assume that all amounts in the question include GST when applicable.
The business operates from Brisbane’s north-side and its main business is to design and establish new gardens at shopping centres and office parks, and to provide ongoing garden maintenance services to clients.
During October 2018, Matt’s Landscaping Pty Ltd was involved in the following transactions:
* Designing and establishing a new garden at the refurbished Westfield shopping centre at North Lakes. The invoice issued on 25 October 2018 totalled $27,600.
* Ongoing garden maintenance services for clients. Invoices issued in October 2018 totalled $55,200.
* Matt’s Landscaping Pty Ltd prepared plans for the elaborate gardens of a new hotel being built in Dubai in the United Arab Emirates. The plans were sent to Dubai by airfreight on 1 October 2018. Matt’s Landscaping Pty Ltd issued an invoice for $17,500 on 15 October 2018.
* Purchases of plants, fertiliser and decorative stones from Brunnings Warehouse, one of Australia’s largest household hardware chains, totalled $9,900.
* The company purchased 100 square meters of Buffalo lawn from a retired school teacher who decided to dig up the lawn of his acreage in Caboolture to put down asphalt so that he no longer had to mow his lawn. The school teacher charged Matt’s Landscaping Pty Ltd $660 on 19 October 2018.
*The company purchased a second-hand lawnmower from a large supplier in Perth for $990 on 1 October 2018. The lawnmower was delivered a day later by a nationwide courier company that charged $110 for this service.
* Salaries and wages paid to staff in October 2018 totalled $12,000.
* Fuel costs for the company’s vehicles, lawnmowers and hedge trimmers totalled $1,980 during October 2018.
* The business operated from rented offices in North Lakes owned by a listed property group. Rent for October 2018 totalled $1,000.
* The October invoice that Matt’s Landscaping Pty Ltd received from the electricity and gas supplier for the rental property totalled $275.
* Purchases of milk, sugar, tea bags and coffee powder from a grocery store totalled $100 in October 2018. These were placed in a tea room in the rented offices for the exclusive use of staff.
* On 1 October 2018, Matt’s Landscaping Pty Ltd purchased a new one and a half tonne utility vehicle for $82,500.
* The company purchased specialised pruning shears from a company in France during October 2018. The shears cost $1,500 and international freight and insurance cost $100.
* Interest paid to the Commonwealth Bank of Australia in October 2018 on an overdraft facility totalled $660.
You are required to:
Calculate the GST payable or GST refundable for October 2018. Show all your calculations and provide reasons for your answers
In: Accounting
John Hanning owns a small hotel. The following balances were taken from his books on 31 December 2016
Takings (Sales)
Premises, at Cost
Fixtures and Fittings at cost
Minibus
Provision for depreciation, 1 January 2016: Fixtures and
fittings
Minibus
Stock of wine, 1 January 2016 Debtors
Creditors
Bank overdraft
Cash in hand
Wages
Cleaning
Purchase of food and wine Running expenses of minibus Bank interest
(Dr Balance) Advertising
General expenses
Capital
Drawings
$
283,670.00 396,000.00 100,000.00
10,000.00
45,600.00 3,600.00 1,200.00 6,500.00 3,970.00
16,450.00 700.00 61,020.00 27,830.00 121,700.00 4,800.00 1,520.00 5,880.00 13,140.00 427,000.00 30,000.00
Page 2 of 6
Additional information:
Depreciation policies:
The fixtures and fittings should be depreciated at 15% on cost. The minibus should be depreciated at 20% of the written down value.
$3,000 of the total for the purchase of food and wine was in respect of food used by Larsen and his family.
Stock of wine at 31 December 2016 was $1,340.
Bank interest of $280 had accrued at 31 December 2016.
Advertising, costing $900, had been paid in December 2016. This was for advertising leaflets to be published in 2017.
Bad debts, $1,190, were to be written off.
REQUIRED
(a) Prepare the Income Statement for the year ended 31 December 2016.
[20 Marks]
(b) Prepare the Statement of Financial Position as at 31 December 2016.
[20 Marks]
In: Accounting
13) T/F If the marginal revenue is less than the marginal cost, a profit-maximizing price taker should increase its output.
14) T/F When a firm is operating in a price-taker market, marginal revenue is always less than the market price.
15) T/F When an economist says a firm is earning zero economic profit, this implies that the firm will likely have to declare bankruptcy in the near future unless market conditions change.
16) T/F In the year 2008, nearly three out of four business firms in the United States were organized as corporations.
17) T/F The limited liability of stockholders in the corporate business structure makes it easier to raise equity capital.
In: Economics
The market for sandwiches consists of two sandwich shops operating in the local market that produce near identical products and that the inverse demand for sandwiches over the lunch hour is given by P = 280 − 2(Q1 + Q2). In this market each firm independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. The cost function for Shop 1 is C1(Q1) = 3Q1, and costs for Shop 2 is C2(Q2) = 2Q2. Given this information answer the following:
(a) Calculate the marginal revenue for each shop.
(b) Calculate the reaction function for each shop.
(c) Calculate the level of output each shop will produce if the market is in equilibrium.
(d) Calculate the equilibrium profits for each shop.
In: Economics
The market for sandwiches consists of two sandwich shops operating in the local market that produce near identical products and that the inverse demand for sandwiches over the lunch hour is given by P = 280 − 2(Q1 + Q2). In this market each firm independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. The cost function for Shop 1 is C1(Q1) = 3Q1, and costs for Shop 2 is C2(Q2) = 2Q2. Given this information answer the following:
(a) Calculate the marginal revenue for each shop.
(b) Calculate the reaction function for each shop.
(c) Calculate the level of output each shop will produce if the market is in equilibrium.
d) Calculate the equilibrium profits for each shop.
In: Economics
The market for sandwiches consists of two sandwich shops operating in the local market that produce near identical products and that the inverse demand for sandwiches over the lunch hour is given by P = 280 − 2(Q1 + Q2). In this market each firm independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. The cost function for Shop 1 is C1(Q1) = 3Q1, and costs for Shop 2 is C2(Q2) = 2Q2. Given this information answer the following:
(a) Calculate the marginal revenue for each shop.
(b) Calculate the reaction function for each shop.
(c) Calculate the level of output each shop will produce if the market is in equilibrium.
(d) Calculate the equilibrium profits for each shop.
In: Economics
Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama–Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15%/year. City Initial Cost Net Annual Income Lagrange $1,260,000 $480,000 Auburn $1,000,000 $410,000 Anniston $1,620,000 $520,000 a. What is the present worth of each site? b. What is the decision rule for determining the preferred site based on present worth ranking? c. Which city should be recommended?
I need help for B and C if possible please
In: Finance
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, “This is a golden opportunity.” The mine will cost $2,700,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $375,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $430,000 at the end of Year 11. a. What is the IRR for the gold mine? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. The Utah Mining Corporation requires a return of 10 percent on such undertakings. Should the mine be opened? Yes No
In: Finance