please illustrate in a graph the finding below and how each situations are effected.  So we are able to see it visually the outcome.   

7) The costs of producing hats have increased considerably, however, their effect is less than the decrease of taxes for the production of the same. offer increase:

Increase in cost of production leads to supply shift to left. Decrease in tax leads to supply shifting right. In this case net effect of tax decrease is more and hence supply curve will shift to right.

8)The government reduced taxes for individuals, applied to the name of these. demand increases:

When govt. decreases tax, disposable income with people which is income left after tax payments will increase and hence they demand more goods and services and hence demand shifts to the right.

9) Competition prices have increased considerably, resulting in an increase of buyers and this in turn increases the inventory movement. however, buyers 'reaction is greater than inventory movement. demand increases. offer increase:

Net effect is more demand and as demand curve has shifted right the prices are likely to go up. It is true that the supply has shifted right but shift in demand curve is more than supply curve.

10) The manufacturing sector of solar plates invisted $ 75 million in new technology, not obstant, its effect is less than the decrease of consumer preference: This question its not clear.

1) The rice offer increases. offer increase

When supply increases (supply curve shifting right) then prices are likely to go down and demand may go up.

2) Likes and preference for a beauty product for eyelashes have been reduced. demand decreases

Prices will go down and this product is demanded less. Demand curve shifts to the left as this is a non price factor.

Over the past several years, the demand for phone operators has fallen dramatically. Which of the following would be a reason for this development?

Question 25

1. Figure: Payoff Matrix II for Jake and Zoe:
   

   		Zoe
   Jake	Competitive Strategy	High Price	Low Price
   	High Price	Jake earns=$1,000; Zoe earns = $1,000	Jake earns= $200; Zoe earns = $1,500
   	Low Price	Jake earns= $1,500; Zoe earns = $200	Jake earns= $800; Zoe earns = $800

   Payoff Matrix II for Jake and Zoe refers to two producers of slushes in their tourist town. Each has two strategies available to it: a high price and a low price. The figure shows the profit per week earned by their two firms. The Nash Equilibrium in the figure is reached when:

   		both firms charge a high price
   		both firms charge a low price
   		Jake charges a high price and Zoe charges a low price
   		Zoe charges a high price and Jake charges a low price

The short-run supply curve for a perfectly competitive firm is:

Which of the following is more likely to increase your own labor productivity?

Brief down in at least 200 words of what do you think about the following summary of an article related to the impact of COVID-19 on mergers and acquisitions. Include your personal views about the following article summary statement.

The article first opens up talking about the effect that COVID-19 has already had on the economy and businesses whether it meant them closing for good, furloughing their employees or consumer spending declining tremendously. Richard D. Harroch, David A. Lipkin, and Richard V. Smith, the authors of this piece state that mergers and acquisitions (M&A) have recovered from economic crisis in the past such as the “dot-com bubble” in 2000-2002 as well as the Great Recession of 2007-2009, but they believe that this time it may be a lot different. Coronavirus isn’t just making an impact on the financial system but also the way deals are having to be made. With the majority of businesses working from home or remote locations, effect use of technology and techniques become critical as the environment has changed. Later in the article, M&A deal activity and how it has changed since the beginning of the pandemic is discussed. It is stated that in the first quarter merger and acquisition levels have fallen by more than fifty percent and most of the transactions from that quarter were done before the crisis became global. The writers also believe that these transactions have slowed down because companies that are usually strategic buyers were having to focus on the future health of the company and not so much about growth. Moving along they also talked about the changes that would need to be made to ensure that these deals could get completed. This article has shown how big of an effect that COVID-19 has had on businesses and mergers or acquisitions in the past six months or so.

XYZ Corporation has total earnings of $500 Million which are
projected to remain constant. XYZ also has total shares outstanding of 300 million. The corporation
intends to distribute dividends to its shareholders according to the following schedule:
Period 1: Give a dividend payout rate of 40%
Period 2: Give a dividend payout rate of 100%.

Period 3 until forever: Give a dividend payout rate of 70%. Dividends are also projected to grow at a
rate of 4% every year forever.

(a) 5 Points. Find the price of XYZ corporation’s stock in period 2 (call it P2). Given P2 write
down the formula that would determine the (per share) price of XYZ’s stock today (P0). Assume
equity cost of capital is 8%. (NOTE: You have to plug in all relevant information into the formula
for full credit).

(b) 5 Points. What is the expected total return from this stock? Assume, you will sell the stock at
the end of period 2. (NOTE: To get full credit you need to write down the expression that would
calculate the total return)

(c) 5 Points. Suppose that in Period 3, XYZ also intends to start buying back some of its shares
outstanding and it intends to spend 20% of its earnings to do so. According to the total payout
model, what would be the stock price of XYZ Corporation in period 2?

(d) 5 Points. As of April 6th, 2020 one share of Microsoft’s stock traded at $165. On the other
hand, one share of stock by Berkshire Hathaway traded at $277,000. Provide one reasons that
might explain the large difference in the stock price between these corporations.

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,207,000 of total manufacturing overhead for an estimated activity level of 71,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Assume that the company allocates any underapplied or over applied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $980,000 of total manufacturing overhead for an estimated activity level of 98,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead. Underapplied Overhead cost: = $161,000

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.

Debit Cost of Goods Sold $161,000, Credit Manufacturing Overhead $161,000

3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.

Debit, Work in Process $8,050, Finished Goods $24,150, Costs of Goods Sold $128,800, Credit Manufcturing overhead.

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Ner operating income will be $__________ Greater if the underapplied over head

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $880,000 of total manufacturing overhead for an estimated activity level of 88,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,520,000 of total manufacturing overhead for an estimated activity level of 76,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year: Machine-hours 64,000 Manufacturing overhead cost $ 1,471,000 Inventories at year-end: Raw materials $ 14,000 Work in process (includes overhead applied of $64,000) $ 90,500 Finished goods (includes overhead applied of $204,800) $ 289,600 Cost of goods sold (includes overhead applied of $1,011,200) $ 1,429,900 Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,520,000 of total manufacturing overhead for an estimated activity level of 76,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year: Machine-hours 64,000 Manufacturing overhead cost $ 1,471,000 Inventories at year-end: Raw materials $ 14,000 Work in process (includes overhead applied of $64,000) $ 90,500 Finished goods (includes overhead applied of $204,800) $ 289,600 Cost of goods sold (includes overhead applied of $1,011,200) $ 1,429,900 Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $560,000 of total manufacturing overhead for an estimated activity level of 70,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?