According to the Internal Revenue Service, the average income tax refund for the 2011 tax year was $2,913. Assume the refund per person follows the normal probability distribution with a standard deviation of $950. a. What is the probability that a randomly selected tax return refund from the 2011 tax year will be 1. more than $ 2000 2. between $1,600 and $2,500? 3. between $3,200 and $4,000? b. Confirm the answers to part a using Excel or PH Stat.
In: Statistics and Probability
a.Carefully explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate accounting profit and economic profit? [5 marks]
b. Explain the relationship between total product, marginal product, and average product. [3 marks]
c. Explain the difference between the short run and the long run. [4 marks]
d. Why is the level of output at which marginal revenue equals marginal cost the profit maximizing output? [5 marks
In: Economics
Jr
| Company | ||||
| Income Statement (in millions) | ||||
| Year 12 | Year 11 | Year 10 | ||
| Sales | 9,431 | 8,821 | 8,939 | |
| Gain on sale of branded product line | 465 | |||
| Cost of goods sold | (6,094) | (5,884) | (5,789) | |
| Selling and admin expenses | (1,746) | (1,955) | (1,882) | |
| Loss from expropriation of subsidiary | (27) | |||
| Interest income | 27 | 23 | 25 | |
| Interest expense | (294) | (333) | (270) | |
| Other income (expense) | (45) | 1 | (25) | |
| Income before income taxes | 1,279 | 646 | 1,463 | |
| Income tax expense | (445) | (168) | (573) | |
| Net income | 834 | 478 | 890 | |
| Jr Company is a marketer of branded foods to the retail and foodservice channels. After reading the notes to the financial statements you find the following exciting info: | ||||
| 1. Gain on sale of branded product line: In year 10, the sale of a portion of one of the branded product lines was completed for $735 million. The transaction resulted in a pretax gain of $464.5 million. The sale did not qualify as a discontinued operations. There was no information about the tax effect of the gain shown above. | ||||
| 2. Loss from expropriation of subsidiary: A loss occured in year 11 when a subsidiary was expropriated during a military coup in a previously stable country. The loss was $27 million. | ||||
| 3. Sale and promotion costs: In year 11, Jr changed the classification of certain sale and promotion incentives provided to customers and consumers. In the past Jr classified these incentives and selling and administrative expenses, with the gross amount of the revenue associated with the incentives reported in sales. Beginning in year 11, Jr changed to reporting the incentives as a reduction of revenues. As a result of this change, the company reduced reported revenues by $693 million in year 12, $610 million in year 11, and $469 million in year 10. The company stated that selling and administrative expenses were "correspondingly reduced such that net earnings were not affected." The income statement above already reflects the adjustments to sales revenues and selling and administrative expenses for years 10 through 12. | ||||
| 4. Tax rate: The U.S. federal statutory rate was 35% for each of the years presented. | ||||
| REQUIRED: | ||||
| a. Briefly discuss whether you would adjust the following items when using earnings to forecast future profitability of Jr. | ||||
| i. Gain on sale of portion of branded product line. | ||||
| ii. Loss from expropriation of subsidiary | ||||
| b. Briefly discuss whether you believe the reclassification adjustments made for the sale and promotion incentive costs are appropriate. | ||||
| c. Prepare an adjusted income statement after making the adjustment(s), if any from part b. Round all adjustments to the nearest million. | ||||
| d. Prepare common size income statements using the information as provided above for year 10, 11, and 12. Set sales equal to 100%. | ||||
| e. Prepare common size income statements after making the adjustments from part b. for year 10, 11, and 12. Set sales equal to 100%. | ||||
| f. Assess the changes in the profitability of Jr during the 3 year period. | ||||
In: Accounting
Network Security: A process can be in one of three states:
running,
ready, and blocked. A job is a kind of process
and can be in one of three states: foreground, background, and
paused.
What’s the similarity between the three process states and the
three job states?
Hint: It’s not a one-to-one mapping.
In: Computer Science
What is the standard deviation of students math test scores? 12 18 27 31 40 42 14 20 27 32 40 51 14 20 27 32 40 56 14 21 29 32 40 60 16 23 31 36 40 65
In: Psychology
Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output is $9. Given this information, the
Average revenue for producing 11 units is $2.
Average revenue for producing 11 units is $4
Marginal revenue for producing the 11th unit is $2.
Marginal revenue for producing the 11th unit is $4.
|
Output |
Total Cost |
|
0 |
40 |
|
1 |
80 |
|
2 |
110 |
|
3 |
130 |
|
4 |
160 |
|
5 |
200 |
|
6 |
250 |
|
7 |
320 |
Refer to the above data. If product price is $30, the firm
will:
A. shut down.
B. produce 4 units and realize a $40 economic profit.
C. produce 6 units and realize a $70 loss.
D. produce 5 units and incur a $60 loss.
In: Economics
What does the revenue equivalence theorem say? Given an example to illustrate the revenue equivalence theorem.
In: Economics
Use the cost and revenue data to answer the questions.
| Quantity | Price | Total revenue | Total cost |
|---|---|---|---|
| 1010 | 9090 | 900900 | 675675 |
| 1515 | 8080 | 12001200 | 825825 |
| 2020 | 7070 | 14001400 | 10251025 |
| 2525 | 6060 | 15001500 | 12501250 |
| 3030 | 5050 | 15001500 | 15001500 |
| 3535 | 4040 | 14001400 | 18501850 |
If the firm is a monopoly, what is marginal revenue when quantity is 2525 ?
MR = $
Not a valid number
tools
x10y
What is marginal cost when quantity is 1515 ?
MC = $
Not a valid number
tools
x10y
If this firm is a monopoly, at what quantity will marginal profit be $0.00?
quantity =
Not a valid number
tools
x10y
If this is a perfectly competitive market, which quantity will be produced?
quantity =
Not a valid number
tools
x10y
Comparing monopoly to perfect competition, which of the statements are true? Select all that apply.
The monopoly is likely to be less responsive to consumers.
The perfectly competitive market's ouput is lower.
The monopoly's price is higher.
In: Economics
Why should auditors assume revenue is misstated? What type of misstatement is typical for revenue? Under what circumstances my revenue be misstated in an atypical manner?
In: Accounting
1. Explain the reason for revenue decoupling and how it works. (Hint: Explain how revenue decoupling is a deviation from traditional rate-of-return/cost-of-service regulation).
2. What is the difference between a reserve and resource? How does economics play a role?
3. Deregulation of electricity markets leads to different electricity prices on different days and at different times of a day. Using a supply-demand diagram, explain why electricity prices tend to be volatile under such pricing. (Hint: how would you characterize the price elasticity of supply and demand at peak periods?)
4. What is the first-best policy instrument to mitigate climate change in the energy industry? How does the performance of subsidies for renewable energy compare with the first-best policy? (Response can be in list form here.)
5. What is the difference between a reserve and resource? How does economics play a role?
In: Economics