Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work such as removal of asbestos insulation around heating pipes in older homes and nonroutine work such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $3.10 to determine the bid price. Since our average cost is only $2.85 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.” To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system follow: Activity Cost Pool Activity Measure Total Activity Removing asbestos Thousands of square feet 800 thousand squarefeet Estimating and job setup Number of jobs 500 jobs Working on nonroutine jobs Number of nonroutine jobs 100 nonroutine jobs Other (costs of idle capacity and organization-sustaining costs) None Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup. Costs for the Year Wages and salaries $ 450,000 Disposal fees 820,000 Equipment depreciation 110,000 On-site supplies 65,000 Office expenses 350,000 Licensing and insurance 550,000 Total cost $ 2,345,000 Distribution of Resource Consumption Across Activities Removing Asbestos Estimating and Job Setup Working on Nonroutine Jobs Other Total Wages and salaries 60 % 10 % 20 % 10 % 100 % Disposal fees 60 % 0 % 40 % 0 % 100 % Equipment depreciation 40 % 5 % 25 % 30 % 100 % On-site supplies 70 % 20 % 10 % 0 % 100 % Office expenses 10 % 40 % 15 % 35 % 100 % Licensing and insurance 25 % 0 % 60 % 15 % 100 % Required: 1. Perform the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system. (Round the "Average cost" to 2 decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job.

A discounted Certificate of Deposit with a face value of USD 2.5 million issued for a period of 90 days at a rate of 3.5%.

1. Between the buyer and issuer, who receives and who parts with money

2. What is the price at which this CD is transacted?

3. The CD is sold 45 days later at a rate of 3.75%. What is the selling price? Explain the two components generating the difference with the first price found.

4. How much would the CD be worth if it was held until the day of its maturity and the rate for 90 days on that day would be 3.80%

Consider a monopolist who has a cost function of ?(?)=???. This monopolist faces two consumers, the first having demand ??(??)=??−?? and the second having demand ??(??)=??−??.
a) Calculate the profit-maximizing price and then the optimal quantity sold to each consumer under uniform pricing, i.e. the monopolist charges the same price for both consumers. What are the monopolist’s profits?
b) Suppose now that the monopolist can engage in third degree price discrimination. Find the monopolists profit maximizing prices for consumers 1 and 2 (they should be different), and calculate the monopolist’s profits. How do they compare to the profits in part (a)?

Consider a monopolist who has a cost function of ?(?)=???. This monopolist faces two consumers, the first having demand ??(??)=??−?? and the second having demand ??(??)=??−??.
a) Calculate the profit-maximizing price and then the optimal quantity sold to each consumer under uniform pricing, i.e. the monopolist charges the same price for both consumers. What are the monopolist’s profits?
b) Suppose now that the monopolist can engage in third degree price discrimination. Find the monopolists profit maximizing prices for consumers 1 and 2 (they should be different), and calculate the monopolist’s profits. How do they compare to the profits in part (a)?

Amicable Corporation is considering the issue of a new product to be added to its product mix. They hired you, a recent business graduate from MacEwan, for conducting the analysis. The production line would be set up in an unused space at the company's main plant. The plant space could be leased out to another firm at $25,000 per year. They have to buy new machinery. The approximate cost of the machine would be $200,000, with another $15,000 in shipping and handling charges. It would also cost an additional $25,000 to install the equipment. The machinery has an economic life of 6 years and would be in class 8 with a CCA rate of 30%. The Machinery is expected to have a salvage value of $95,000 after 6 years of use. The new product line would generate incremental sales of 1,200 units per year for 6 years and they are expected to grow 5.5% per year. The cost per unit is estimated in $62 per unit in the first year. Each unit can be sold of $200 in the first year. The sales price and cost per unit are bothe expected to increase by 3.2% per year due to inflation. The fixed costs are estimated to be $100,000 at the end of th1st year and would increase with inflation. To handle the new product line, the firm's net operating working capital would be an amount equal to 15% of sales reventue. The firm tax rate is 37%. There are 1000 common shares outstanding with market price of $40 each. Alsom they have 100 preferred shares with market value of $50. There are $50,000 long-term bond trading in market with an average price of $1,100 and 6 years to maturity, and 8% semi-annual coupon. Common shares of firm have a beta of 1.3 Risk free rate is 4% and expected market return is 16%. Preferred stock holders are recieveing $1 quarterly dividend. The project is considered by the financial department to be as risky as the company. The reinvestment risk is assumed to be 15%. 1) -FInd the NPV & IRR of the project by using the pro forma financial statement method to determine cash flow. -Enter the input variables in cells of their own at the top of the spread sheet (so it is easier to do sensitivity analysis calculations) - Set up the necessary equations by referencing to the input variable cells. The spreadsheet must be formular driven: do not put any numbers in equations, only cell references. - Use Excel's Built in functions wherever possible (eg. NPV and IRR functions) 2) Break Even Analysis - At what WACC rate and Unit sales price the project is going to break even based on NPV method?

Write a function called splice() that “splices” two integer arrays together by first allocating memory for a dynamic array with enough room for both integer arrays, and then copying the elements of both arrays to the new array as follows:

            first, copy the elements of the first array up to a given position,

            then, copy all the elements of the second array,

            then, copy the remaining elements in the first array.

The function should have parameters for the two input arrays, their lengths, and the number of elements of the first array to be copied before the second is spliced. The function should return a pointer to the new array.

To test the function, write a program that:

Prompts the user for the sizes of the two integer arrays and the number of

elements of the first array to be copied before the splice (e.g., 32 means insert

32 elements of the first array and then the second array),

Creates the two arrays and fills them with random values. Use the seed 100 for

srand().

Outputs the contents of the two input arrays in rows with 10 values/row.

Outputs the contents of the spliced array in rows with 10 values/row.

The program should use dynamic memory to store all three arrays. Be sure to de-allocate the memory before exiting. Your program must ensure that non-numeric and negative entries are not entered. Use modular design in your program. That is, separate functions should be used to fill the arrays with random numbers, print the arrays, and of course, splice the arrays together.

1. I need to fuel my car every week. Based on my observation, the price of gas really follows a Markov Chain. The price can be 3.2 dollars, 3.3 dollars or 3.4 dollars for one gallon. If the price for this week is 3.2 dollars, the price of next week will be 3.2, 3.3 and 3.4 with the probability of 0.4, 0.4 and 0.2 respectively. If the price for this week is 3.3 dollars, the price of next week will be 3.2, 3.3 and 3.4 with the probability for 0.2, 0.5 and 0.3 respectively. If the price for this week is 3.4 dollars, the price of next week will be 3.2, 3.3 and 3.4 with probability 0.3, 0.3 and 0.4 respectively.
   1. Please give out the transition matrix.
   2. For one year, how much should I pay for the gas for my car? (Assume 52 weeks/year and I use 10 gallons every week).
   3. If the price of this week is 3.2 dollars, what is the probability that I will observe 3.3 dollars price after 2 weeks?

If the price of this week is 3.2 dollars, I will observe 3.3 dollars price for the first time after how many weeks in average?

On January 1, 2020, North Country Co issued 10-year, 7 percent bonds with a face value of $1 million. The market rate for bonds of this class at the time of issue was 8%. Interest is payable annually, with the first payment due on December 31, 2020. a. Compute the issue price of the bonds. b. Show the journal entry to record the issuance of the bonds on January 1. c. Show the journal entry to record the first interest payment.

1. You own a share in Red Hat. Every period it has a 15 percent chance of going bankrupt. The interest rate is 0. If it survives to the end of the first period, it will pay $2 in dividends, $3 in dividends at the end of the second period, $3 in dividends at the end of the third period, and $4 in dividends at the end of the fourth period. It will pay no dividends after the end of the fourth period What is its efficient market price at the beginning of the first period?