Suppose preferences for consumption and leisure are: u(c, l) = ln(c) + θ ln(l)

and households solve:

max_c,l u(c, l)

s.t. c=w(1−τ)(1−l)+T

Now suppose that in both Europe and the US we have:

θ = 1.54

w=1

but in the US we have:

τ = 0.34

T = 0.102

while in Europe we have:

τ = 0.53

T = 0.124

The values for τ and T above are not arbitrary. If you did the calculations correctly, you should find that both governments have balanced budgets (up to rounding error), i.e. the government collects τwh∗ and redistributes all the tax revenue back as transfers T. Check that this is the case. In other words, that tax revenue equals transfers in each country.

Panda Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

Actual results for October:

The spending variance for medical supplies in October would be closest to:

The following information was taken from the records of Bridgeport Inc. for the year 2017: Income tax applicable to income from continuing operations $206,448; income tax applicable to loss on discontinued operations $27,336, and unrealized holding gain on available-for-sale securities (net of tax) $23,700.

Shares outstanding during 2017 were 109,300.

(a) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Create a business plan for Mobile Health Care Organization. you are required to write a 1-page Service Description (excluding the header) and a 1-page Income Statement (excluding assumptions) for your organization or service. Your assignment should not exceed these page limits. Because this course is not an accounting course, your Income Statement section can reflect only Operating Income (Revenue, Expenses, Operating Income), Basic Information for the Service or Equipment Description and Business Plan Income Statement Projections 1-page Service Description (excluding the header) and a 1-page Income Statement (excluding assumptions) for your organization or service. Your assignment should not exceed these page limits. your Income Statement section can reflect only Operating Income (Revenue, Expenses, Operating Income)

ABC Catering is putting on a charity dinner. The average selling price for a ticket is $170. The variable cost for the dinner is $110. ABC will also incur fixed costs such as room rental fees and other fixed costs, totaling $30,000.

1. How much sales revenue must ABC Catering generate in order to break even?

b. How many tickets must ABC Catering attract in order to break even? Explain your answer.

c. What is ABC Catering’s profit or loss at each of the following possible ticket sales levels: 450 tickets? 500 tickets? 525 tickets?

d. If variable costs increase by 5 % per dinner guest, what is the new breakeven point in terms of sales revenue and tickets? Compare it to your answers to questions a and b, and explain the difference.

What does it mean to retire a debt? Then calculate how to do the following (show your work): Hospital First has a fusion intervention center and they invested $106,944 for five years to retire a debt. Assuming the clinic can invest at 6% compounded annually, how much is the debt Hospital First needs to retire?

Distinguish the accounts receivable from the revenue cycle.

Explain the three laws that govern accounts receivable. Explain how you measure revenue cycle performance.

What are the different methods used to value inventory and what do they mean?

How do you evaluate effective inventory management performance?

Which of the 7 common methods of reimbursement to providers do you feel is best for providers today? Explain why you have chosen it over the other six.

Stivason Clinic uses client-visits as its measure of volume. During June, the clinic budgeted for 3300 client-visits, but it actually received 3400 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April. All costs are mixed costs. Data used in budgeting:

Fixed amount Variable amount per client visit

Revenue 27.76

Personnel expense 22400 8.75

Medical supplies exp. 500 4.71

Administration exp. 9270 0.84

Actual results:

Revenue 87487

Personnel expense 51500

Medical supplies exp. 15164

Administration exp. 12560

Calculate the sales price variance,Sales volume variance, Personnel variance. SHOW ALL STEPS