Redistributive philosophies and incentives Consider a society comprised of two people. Bob earns an income of $90,000 per year and Cho earns an income of $20,000 per year. The government is considering a redistribution plan that would impose a 25% tax on Bob's income and give the revenue to Cho. Without any incentive distortion, Bob would retain $67,500 and Cho would end up with $42,500. However, let us assume that since Bob will not receive all the income he earns, he decides to work less and earn an income of only $75,000, of which 25%×$75,000=$18,750 will be owed in taxes. With the redistribution plan, Bob will take home an income of $ . The $18,750 that Bob pays in taxes will be transferred by the government to Cho. Let us assume that since Cho now receives payment from the government, she will not work as many hours and will earn an income from work of only $16,000 instead of her initial $20,000. With the redistribution plan, Cho's total income (including the government payment received) is now $ . Without a redistribution plan, total income in this society is $ . After the redistribution plan is implemented, total income in this society is $ . Therefore, the redistribution plan total income in this society. According to the libertarian political philosophy, the government implement this redistribution plan. Why? The plan benefits Cho, who is the least well off member of society. Total societal utility will increase if the plan is enacted. The government is not entitled to take money away from one person and give it to another.

Although she lives at Lenoir Manor, a permanent care retirement institution, Laura, a petite woman (1.42 m; 44 kg weight) widow of the rector of a local university, does not consider herself old. Does not show significant nutritional or health problems and has a good appetite. Years before, she was an excellent cook and a good party hostess, but in the residential institution other people prepare her food. Because you have had slight fluid retention for the past year, you no longer add salt to your food. She tells Bridget Doyle, her nutritionist, that yes, sometimes she doesn't like food and misses cooking for herself. On a Monday morning, the nurse finds Laura in bed with paralysis of the left side of the body. The diagnosis is a right stroke, leading to three weeks of hospitalization. Back in the specialized care ward, Laura requires a nasogastric tube to feed her. He is alert and recognizes people, but his speech is limited. From one day to the next, their care has changed from that of a person who requires routine nutritional monitoring to someone who has many interrelated problems:
• Inability to clearly communicate your medical and nutritional concerns.
• Weight loss of 4.08 kg during your three-week hospital stay.
• Intense dislike for the nasal tube, as evidenced by her repeated attempts to remove it, leading to her hands being tied.


apply nutritional assessment, nutritional diagnosis, nutritional intervention and nutritional surveillance

LimeBike is a start-up founded in 2017 located in San Mateo, California. Its mission is to make shared bicycles accessible and affordable. The company has taken the basic idea of shared bicycles and eliminated the need to return the bike to a docking station, which may not be near the cyclist’s destination.

LimeBike charges $1 per 30 minutes of riding. Students receive a discounted rate of $0.50 per ride.

To use LimeBike, you first use the LimeBike app to locate one of the citrus-colored bikes near your location. Once you are at the bike, you scan the QR code on the bike or enter the bike’s plate number into the app to unlock the bike. When you are finished using the bike, you park the bike by a bike rack or post – anywhere that is legal and visible. Once you press down the back wheel lock, the trip is finalized and your payment is processed – all within the LimeBike app.

LimeBike operates the bicycle networks within cities, eliminating the need for cities to maintain the bikes or deal with other logistics. The shared bicycle network is not dependent on government funding, making it appealing to cities with tight budgets.

LimeBike just raised $12 million in funding from investors to expand its operations. It is set to begin operating in as-of-yet undisclosed cities in April or May of 2017.

You are one of the only accountants in LimeBike headquarter's office.

The company’s CEO, Toby Sun, has tasked you with forming the company's the company’s accounting policies.

For the discussion post, write an email to the company CEO and address all of the following typical company scenarios and whether each item should be expensed or capitalized at LimeBike:

The cost of customized bikes. This includes the bike's purchase price, shipping, assembly and sales tax.

Development costs of the smart phone app for locating, paying, and returning bikes. (Resource: Accounting for Software Development)

Salary of the salesperson who works to get cities to adopt the Lime Bike program.

Replacement tires for bikes.

Routine bike maintenance including chain lubrication, brake pad replacement, and drive train cleaning

Electricity and other utilities in administrative offices

Somewhere in your email, also address why this classification is important. Be sure to include how these decisions would impact the company’s balance sheet and income statement.

At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information:

JobDirect MaterialsDirect LaborMachine Hours

Job 765$10,920              $3,276        39

Job 76614,706              4,644        86

Job 765 produced 234 units, and Job 766 consisted of 344 units.

Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $135 per hour.

a. Determine the balance on the job cost sheets for each job.

Job 765$

Job 766$

b. Determine the cost per unit at the end of April. Round your answers to the nearest cent.

Job 765$

Job 766$

A company owns and operates an electric sign that uses 300 individual lamps to display messages. The sign currently uses bulbs that cost $2.50 each and last for an average of 2 years. These lamps draw 60 watts of power each. The company is considering switching to LED bulbs that have an estimated life span of 10 years and cost $30 each. The LED bulbs only draw 7.5 watts of power for the same light levels. Replacing the lamps requires special equipment and labor that will cost $1,200 dollars. This work is performed every two years for the current lamps and at the end of 10 years for the LED lamp. The sign operates 2500 hours each year. Electricity costs $0.075/kWh. The company uses 7% as its rate of return. Assume that the maintenance protocol replaces all 300 lamps when the average lifetime is reached. Consider costs to be negative numbers and benefits as positive a.) Compute the total annual cost of operating the sign using the 300, 60 watt lamps. DO NOT include dollar signs the answer. b.) Compute the total annual cost of operating the sign using the 300, 7.5 watt LED lamps. DO NOT include a dollar sign in the answer. (Note: this is a cost and should be a negative value c.) Determine the present worth of benefits by subtracting the expenses of owning and operating the LED bulbs from the conventional bulbs. (Hint: comparing the alternatives requires equal life spans. Use least common multiple of lives) d.) Compute the benefit-cost ratio

Suppose for your company, the probability an individual customer purchases something in-store is 0.74. The probability he or she purchases something online is 0.81. We have described a set of Bernoulli trials with this scenario:

            (a) There are two outcomes – purchase (a “success”) or no purchase,

            (b) The probability of a success is constant across trials, and

(c) Trials are independent of each other, assuming customers are not related or shopping together.

(1) What is the expected number of customers until the first one purchases something in-store?

(2) What is the expected number of customers until the first one purchases something online?

(3) What is the probability that the third customer is the first to purchase something in-store?

(4) What is the probability that the fifth customer is the first to purchase something online?

(5) What is the probability of exactly 7 of the next 12 customers purchasing something in-store?

(6) What is the probability that exactly 7 of the next 12 customers will purchase something online?

(7) What is the probability that no more than 6 of the next 9 customers will purchase something in-store?

(8) What is the probability that at least 8 of the next 11 customers will purchase something online?

Now we want to look at purchasing a specific item. Suppose the probability customers purchase that item in-store is 0.60, while the probability they purchase it online is 0.79.

(9) What is the probability exactly 4 out of the next 7 in-store customers will purchase that item?

(10) What is the probability at least 5 of the next 8 online customers will purchase that item?

(11) What is the probability the 4^th in-store customer will be the first to purchase that item?

(12) What is the probability no more than 5 of the next 11 online customers will purchase that item?

(13) What is the probability that at least 8 of the next 12 in-store customers will purchase that item?

(14) What is the probability the first online customer to purchase that item will be before the 5^th?

Suppose for your store, the mean number of customers at any time of the day is 4.8 (this would be λ). Determine the following probabilities. NOTE these are not based on Bernoulli trials.

(15) What is the probability of having no customers in the store at some point during the day?

(16) What is the probability of having at least 6 customers in the store at any given point?

(17) What is the probability of having no more than three customers in the store at any given point?

(18) What is the probability of having exactly 5 customers in the store at any given point?

(19) If I wanted to know the number of customers before the first one bought something, which model would I use?

            GEOMETRIC            BINOMIAL                POISSON            (circle one)

(20) If I wanted to know how many customers out of a certain number will buy something, which model would I use?

            GEOMETRIC            BINOMIAL                POISSON            (circle one)

Case: Big Batch Crisp Company is a small business that makes & sells individual jars of cherry crisp. The company sells to grocers, coffee shops, and sandwich shops locally and in the surrounding area. They also take a limited amount of large quantity orders directly from customers. The information below pertains to the company’s budgeting process during their busiest time of year.

• The cherry crisp is sold in individual jars for $4.75 per unit (jar).

• The budgeted sales in units (jars) are as follows:

• October          50,000 units
• November      72,000 units
• December      68,000 units
• January          51,000 units
• February        58,000 units

• All sales are sold on account. The collection pattern is as follows:

• 60% of sales in the month of sale

• 40% collected in the following month

• The company aims to have jars of crisp (finished goods inventory) on hand in refrigeration at the end of each month equal to 5% of the next month’s unit sales. On September 30^th, the company had 2,500 jars on hand.

• .2 pounds of cherries are required for each jar produced. The company’s goal is to have cherries (raw material) on hand at the end of each month that is equal to 15% of the next month’s production needs. On September 30^th, the company had 1,533 pounds of cherries on hand.

• The cherries costs $2.60 per pound from a local farm. Big Batch Crisp’s payment pattern is as follows:

• 50% of the month’s purchase are paid for in the month of purchase
• 50% is paid for in the following month

• Because the crisp is made in large batches, it only requires 3 minutes (.05 hours) of labor on average to produce one jar (unit of finished good). The hourly employees are paid $17.00 an hour. Wages are paid in the month incurred.

• Variable manufacturing overhead is $1.40 per jar.

• Fixed manufacturing overhead is $9,000 per month including $6,000 in depreciation that is not a current cash outflow.

• All cash disbursements for manufacturing overhead are paid in the month incurred.

• Variable selling and administrative expenses are $0.80 per unit sold.

• Fixed selling and administrative expense is $8,000 per month including $4,500 in depreciation that is not a cash outflow of the current month.

• All cash disbursement for selling and administrative costs are paid in the month incurred.

• Big Batch Crisp Company spent $12,000 at the beginning of October (October 1^st) updating and upgrading their kitchen equipment.

• Big Batch Crisp borrowed a short term note of $150,000 on September 30^th to support 4^th quarter sales and growth activities. Interest payments of $625 are made on the last day of each month.

• Big Batch Crisp is able to repay the short term note of $150,000 on December 31^st and still keep their minimum cash balance of $200,000 on hand.

• Big Batch Crisp Company uses variable costing on its budgeted income statement and balance sheet.

Big Batch Crisp has the following balance sheet as of September 30^th, 2020:

Requirements

1. Enter your name at the top of the INPUTS tab.

2. Prepare a master budget for the quarter ended December 31^st, 2020 including: Finished Goods Inventory Cost per Unit, Sales Budget, Schedule of Expected Cash Collections, Production Budget, Raw Materials Purchases Budget, Direct Labor Budget, Manufacturing Overhead Budget, Selling & Administrative Expense Budget, Cash Budget, Budgeted Income Statement, and Budgeted Balance Sheet (total of 11 schedules.) Each schedule should be on a separate worksheet as it is laid out in your template.

There is at template provided to you in the assignments link in the Excel Project module with an input page that you must use.

Complete the shaded areas of the template only.

All of your spreadsheets must be formula driven from the input tab. This means that every cell should contain either a value referenced from the input worksheet or a formula manually entered into the cell using the referenced values or the input values.

3. Big Batch Crisp Company is interested in purchasing three new delivery vehicles in October costing approximately $65,000 total. The company prefers to pay cash for these vehicles rather than having to finance them, while still maintaining a minimum cash balance of $200,000 at all times. The existing budget does not show that they will be able to do this without making a change to sales or cost. Using Goal Seek, determine the sales price necessary to allow for the purchase of these vehicles in October.

HINT: To find Goal Seek, click on the Data tab and under Data Tools click on the What-If Analysis. After finding your answer, manually enter your answer on the Goal Seek tab and then change the sales price back to $4.75 on the INPUTS tab.

4. After comparing your file against the project rubric below, upload your completed Excel file to Canvas via the project link to submit. You may only submit once so make sure this is your final version.

*As you work, be sure to periodically check the figures below to confirm that you are on the right track!

Good luck!

Check Figures/Evaluation Rubric:

These figures will be used to grade your project.

A company produces individual resistors and transistors as well as computer chips. Each set of resistors requires 2 units of copper, 2 units of zinc, and 1 unit of glass to manufacture. Each set of transistors requires 3 units of copper, 3 units of zinc and 2 units of glass. Each set of computer chips requires 2 units of copper, 1 unit of zinc, and 3 units of glass. If there are 150 units of copper, 110 units of zinc, and 160 units of glass available, how many sets of resistors, transistors, and computer chips should the company manufacture to use all of its available supplies or raw materials? how many resistors, transistors and computer chips?