You are hired as a junior manager at a state-owned institution at the beginning of 2021 with a salary of $100,000. You must choose between two retirement plans in the first week of your employment. This choice cannot be reversed. The two alternatives are:

• the state’s defined benefit plan (DBP): under which you will receive annual retirement benefits determined by the following formula: 1.5% * years of service * salary at retirement.

• a defined contribution plan (DCP): under which the institution will contribute each year an amount equal to 8% of your salary to your retirement fund.

You assume that salaries will rise by 3% a year, the interest rate and return of retirement assets will roughly match the market index return of 8%, you will retire after 35 years (end of 2055), and receive retirement payment for the subsequent 25 years (between the end of 2055 and the end of 2080).

What is the amount of PBO under the DBP for your employer at the end of 2021? Hint: present value at the end of 2021

URGENT - i NEED ASSISTANCE WITH QUESTIONS 6-9 ONLY

Following a strategy of product differentiation, Positive Charge Ltd. makes high quality electronic components. Positive Charge Ltd. presents the following data for the past two years relating to its AA01 product.

Year 1 Year 2

Units of AA01 produced and sold 4,000 4,320

Selling price $800 $850

Direct materials (kilograms) 10,400 12,360

Direct materials costs per kilogram $60 $64

Manufacturing capacity for AA01 (units) 15,000 15,000

Conversion costs $1,350,000 $1,440,000

Conversion costs per unit of capacity $90 $96

Selling and customer-service capacity (customers) 80 78

Total selling and customer-service costs $760,000 $780,000

Selling and customer-service capacity cost per customer $9,500 $10,000

Positive Charge produces no defective units but it wants to reduce direct materials usage per unit in Year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs nor customerservice costs are affected by changes in actual volume. Positive Charge has 60 customers in Year 1 and 66 customers in Year 2. The industry market size for the product increased 6% from Year 1 to Year 2. Of the $50 increase in unit selling price, $30 is attributable to a general price increase. Required:

1) What is the operating income for Year 1?

2) What is the operating income in Year 2?

3) What amount is the revenue effect of the growth component?

4) What amount is the cost effect of the growth component?

5) What is the net effect on operating income as a result of the growth component?

6) What amount is the revenue effect of the price-recovery component?

7) What amount is the cost effect of the price-recovery component?

8) What is the net effect on operating income as a result of the price-recovery component?

9) What is the net effect on operating income as a result of the productivity component?

Dear Math Students:

I recently bought a restaurant in Chicago.  It is pretty small, but well-located.  We are open every day, but Mondays, from 4 PM until 11 PM.  Our menu is basically Italian.  We offer individual pizzas, pastas, salads, and a special of the day. We also have really good desserts. We offer cookies, ice cream and superb cakes.  Last month we had 800 customers.  Our salads are considered a whole meal, so people don’t usually order another entrée with them.  Last month, we sold 400 pizzas, 200 pasta dishes, 130 salads, and 70 specials of the day. Not everyone orders a dessert, but last month we sold 200 cookies, 100 ice creams, and 250 cakes.  Next week we are expecting 250 to 300 customers.  I need to know how many of each of the entrees and how many of each of the desserts I can expect to sell.

I would also like to know how much money I can expect to make.  Perhaps you could also let me know how much the average customer spends. Let me tell you the prices.  The pizzas are $7.95.  The pastas are sold for $8.95.  The salads are $6.95.  The special of the day is $9.95.  As for the desserts, the cookies are $1.00, the ice cream is $1.50, and the cakes are $3.00

Thanks a lot for your help, I am not very good at math, but perhaps you could try to explain your answers in such a way that I could estimate them for myself next time.

Yours sincerely,

Chris Smith

Pizza Plus

`~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Put the results of your calculations here and the explanation of your calculations o the back of this sheet.

Estimates for 250 customers

Average customer spends: $________________

Estimates for 300 customers

Average customer spends: $________________

Explanation of Calculations:

Chapter 10 Pure Monopoly Assignment

1. What are the major characteristics of pure monopoly?

2. In the following table are demand and cost data for a pure monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost.

Answer these three questions:

1. What output will the monopolist produce?

(b) What price will the monopolist charge?

(c) What total profit will the monopolist receive at the profit-maximizing level of output?

Construct a 93% confidence interval for the sample labelled “problem 3” in the data sheet. What is the probability that the population mean might be outside the interval?

The annual salaries (in thousands of dollars) for the employees of a small technology firm are as follows:

Construct a frequency table. Use 7 classes, start with a lower class limit of 59, and use a whole number for the class width.

5. It is of interest to Starbucks on campus, the average spending of students in one week, this with the aim of creating a promotion for their students. It is said that they spend 163 pesos on average and it is known from experience that the standard deviation in spending is 52 pesos. a. What is the probability of a student on campus spending at least 180 pesos?

6. The following are the partial ratings of the group: 79, 87, 90, 74, 83, 72, 80, 56, 84, 83, 92, 70, 65, 69, 87, 88, 74, 72, 82, 91, 63. a. Draw up a basic frequency distribution table (1 pts.) b with the grades. Make a histogram

Roy constructs an options portfolio based on the MXC stock. He writes a call option with exercise price $74 and writes a put option with exercise price $70. Both options have the same expiration date.

MXC Call Option price $0.42

Exercise price $74

MXC Put $0.58 $70

1. Draw the payoff diagram of this portfolio at option expiration as a function of MXC stock price at that time.

2. What will be the profit/loss on this position if MXC is selling at $72 on the option expiration date? What if MXC is selling at $77?

3. At what two stock prices will Roy break even on his position?

Roy constructs an options portfolio based on the MXC stock. He writes a call option with exercise price $74 and writes a put option with exercise price $70. Both options have the same expiration date.

   MXC Call MXC Put

Option price $0.42    $0.58

Exercise price $74     $70

a. Draw the payoff diagram of this portfolio at option expiration as a function of MXC stock price at that time.

b. What will be the profit/loss on this position if MXC is selling at $72 on the option expiration date? What if MXC is selling at $77?

c. At what two stock prices will Roy break even on his position?

Roy constructs an options portfolio based on the MXC stock. He writes a call option with exercise price $74 and writes a put option with exercise price $70. Both options have the same expiration date. MXC Call MXC Put Option price $0.42 $0.58 Exercise price $74 $70

a. Draw the payoff diagram of this portfolio at option expiration as a function of MXC stock price at that time.

b. What will be the profit/loss on this position if MXC is selling at $72 on the option expiration date? What if MXC is selling at $77?

c. At what two stock prices will Roy break even on his position?