QUESTION 5

Bennett is concerned that he is not going to have enough money to retire. He went to a financial adviser who said he should put as much money as possible into superannuation. Bennett is employed at Paflagonia Pty Ltd. He salary sacrificed $20,000 into superannuation. This was in addition to the $10,000 that his employer was legally required to contribute. Bennett also withdrew $300,000 from his bank account to contribute to his superannuation fund. This is the first time that Bennett has personally contributed any money into superannuation.

REQUIRED

Explain to Bennett the tax consequences in relation to contributions into his superannuation account for the current year.

The Tri-City Office Equipment Corporation sells an imported copier on a franchise basis andperforms preventive maintenance and repair service on this copier. The data below have beencollected from 45 recent calls on users to perform routine preventive maintenance service; foreach call, X is the number of copiers serviced and Y is the total number of minutes spent bythe service person. Assume that first-order regression model (1.1) is appropriate CH01PR20.txt (a) Estimate the change in the mean service time when the number of copiers serviced increases by one. Use a 90 percent confidence interval. Interpret your confidence interval. (d) The manufacturer has suggested that the mean required time should not increase by more than 14 minutes for each additional copier that is serviced on a service call. Conduct a test to decide whether this standard is being satisfied by Tri-City. Control the risk of a Type I error at 0.05. State the alternatives, decision rule, and conclusion. What is the P-value of the test? (e) Does b subscript 0 give any relevant information here about the ``start-up" time on calls, that is, about the time required before service work is begun on the copiers at a customer location?

20 2
60 4
46 3
41 2
12 1
137 10
68 5
89 5
4 1
32 2
144 9
156 10
93 6
36 3
72 4
100 8
105 7
131 8
127 10
57 4
66 5
101 7
109 7
74 5
134 9
112 7
18 2
73 5
111 7
96 6
123 8
90 5
20 2
28 2
3 1
57 4
86 5
132 9
112 7
27 1
131 9
34 2
27 2
61 4
77 5

Suppose you work at a local state hospital. In 2015, the infectious disease department of the hospital was operating at max capacity. Your supervisor has given you the job of presenting to the hospital leadership board about the number of patients who contracted infections while at 30 different hospitals in your state in 2015. The board will use your findings to make informed decisions about possible expansion of the infectious disease department. You will review the data, create visuals for the data, and create a presentation for the hospital leadership board to help with the decision.

2015
Hospital   Infections *Secondary column are the # of infections*
1 89
2 58
3 96
4 206
5 31
6 16
7 249
8 79
9 29
10 6
11 222
12 108
13 58
14 54
15 81
16 64
17 9
18 130
19 37
20 121
21 27
22 6
23 95
24 7
25 18
26 37
27 140
28 74
29 134
30 184

   Infections
Min=
Q1=   
Median=   
Q3=   
Max=   

Check for Outliers  
IQR=   
Lower=   
Upper=   

Infection Class Frequency
6 - 81=   
82 - 156=
157-231=   
232-306=   

•   Use the following data to complete the values, a histogram, box & whisker plot, bell curve with distribution, and answer the following questions below.
•   How did the outliers impact the mean and median? How did they impact the histogram?
•   How would you describe the shape of your histogram? Is it skewed?
•   Which do you think is a better measure of central tendency, median or mean? Why?
•   How would you describe how spread out your data is? What did you calculate or which visual supports your conclusion on how spread out the data is?
•   How does your data support your conclusion?

1. Examine the table below showing the price elasticities of demand for tobacco products.

Source: Onder and Yureki, 2006

Let’s first understand how to use the table by looking at the price elasticity of demand overall for tobacco users, the last row of the table entitled “Total.” The total price elasticity coefficient is -0.87. The coefficient is negative since higher tobacco prices result in less quantity demanded, ceteris paribus. So for example, a 10 % increase in tobacco taxes would reduce the quantity demanded by 8.7% overall. Within this 8.7% reduction in quantity demanded, 4% would quit altogether (Elasticity of Smoking Participation coefficient) while the quantity demanded would fall by 4.7% among those who keep smoking (Conditional Demand Elasticity).

Health advocacy groups during the last session of the Montana Legislature proposed raising the state’s tax on cigarettes by $1.50 per pack to boost it to $3.20 a pack. The purpose of the tax was two-fold; to reduce tobacco use and to raise badly needed tax revenue for programs suffering budget cuts and administered by the Montana Department of Health and Human Services. Also, the price elasticity of demand for tobacco products by youth is -1.2 (not shown).

1. Identify the demographic groups who will most respond to higher tobacco prices and offer an explanation why they respond the way they do.
2. If the primary purpose is to raise badly needed revenue for other programs cut by the Montana Legislature, what demographic will raise the most revenue for the government?
3. If you want to encourage smokers to drop the habit altogether, which demographic group would likely respond the most to the higher price of tobacco products by quitting the habit entirely?
4. How would all elasticities likely change in the long-run? Why?

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

1. The goal of the needs assessment stage in the selling process is ____________________.

   		a. to maximize the fit between what the company can offer and the customer's needs
   		b. to figure out what competitors are offering the customer
   		c. to identify how much the potential customer is willing to pay
   		d. calculate the probability that the customer will end up buying from the company
   		e.decide how to best convince the buyer to buy the company's top-of-the line product

2. Online retailers of clothing often provide recommendations for additional products a customer should buy that would "complete the look." This is an example of _____________________________.   

   		a. cross-selling
   		b. referral selling
   		c. relationship selling
   		d. target selling
   		e. quota selling

3. The idea behind CRM (Customer Relationship Management) is that _______________________________.

   		1. customers must be managed in order for them to understand how services should be used
   		2. a company should build relationships with its stakeholder customers through the use of publicity
   		3. it is important to maximize short-term profit
   		4. knowing more about individual customers will help a company serve its customers better
   		5. customers should take a bigger role in creating products of the future

4. For which situation would personal selling be the most appropriate choice?

   		a. Facebook would like to encourage older consumers to use its service.
   		b. Coca-Cola would like to remind its customers to drink more soda.
   		c. Gatorade is launching a new organic sportsdrink.
   		d. Nike is launching a new sneaker.
   		e.GE Healthcare is selling medical equipment to hospitals.

Suppose the country's money supply is equal to $10 million.
The FED buys $4 million worth of bonds from Wells Fargo customers depositing it in their bank accounts.
Wells Fargo then lends out 60% of the new deposits.
At this point:

1. What is the new total money supply?  

2. What is the money multiplier?  

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KeyBank has assets of $101 in reserves, $27 in bonds, and
$600 in loans as well as $370 in Demand Deposits.

3. Given that information, what is KeyBank's Owners' Equity?  

4. If KeyBank sells all its bonds to the FED,
what is the change on the money supply if the money multiplier is 5?  

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5. Suppose Ringo buys a $5000 bond from the FED.
He bought that bond with a check on his demand deposit at Wells Fargo.
If the money multiplier is 5,
then by how much will the money supply change?

You own a business similar to Starbucks and are in the process of analyzing two of your customers, Natasha and Boris, and how each of them impacts your business. In particular, Natasha buys 14 lattes each week and also buys 7 breakfasts per week at your business. The price of each latte is $4 and she spends $8 on each breakfast. She will likely continue to do this for the next 27 years. Boris buys 14 lattes each week and also buys 7 breakfasts per week at your business. He also spends $8 on each breakfast. He will likely continue to do this for the next 9 years.

27. The reserve ratio is the

Multiple Choice

• percentage of total deposits that are held as bank reserves.

• number of deposit dollars the banking system can create.

• fraction of deposits that banks hold as excess reserves.

• percentage of excess reserves held by banks.

28. The discount rate is the interest rate charged by

Multiple Choice

• the Federal Reserve when it lends money to private banks.

• a private bank when it lends money to commercial customers.

• a regional Fed bank when it lends money to another regional Fed bank.

• a private bank when it lends money to another private bank.

29. If the Fed is concerned about inflation, it should

Multiple Choice

• buy bonds or reduce the discount rate.

• buy bonds or raise the discount rate.

• sell bonds or reduce the discount rate.

• sell bonds or raise the discount rate.

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is 5.4%​, what are the NPVs of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?