Question 2 options: Groovy Juice Mixers, Inc. Groovy Juice Mixers, Inc. mixes specialty drinks out of apple, guava, and papaya juices. Currently it has 1300, 700, and 600 gallons of each of these kinds of juices in inventory, respectively. Groovy currently has two products, Tropical Breeze and Guava Jive, which sell for $2.20 and $1.70 per gallon, respectively. Tropical Breeze is a mixture of all three ingredients that consists of 20% to 25% guava juice, and also 20% to 25% papaya juice. Guava Jive consists at least 50% and at most 55% guava. It does not have to contain papaya juice, but if it does, it may be at most 10% papaya. Assume inventory is a sunk cost, and that the costs of mixing are negligible. Therefore, Groovy's goal is to obtain the maximum possible revenue from the inventory on hand. To do this problem you will need 6 Decision Variables: TA = Number of Gallons of Apple Juice Used in Tropical Breeze TG = Number of Gallons of Guava Juice Used in Tropical Breeze TP = Number of Gallons of Papaya Juice Used in Tropical Breeze GA = Number of Gallons of Apple Juice Used in Guava Jive GG = Number of Gallons of Guava Juice Used in Guava Jive GP = Number of Gallons of Papaya Juice Used in Guava Jive Find each of the following: TA = TG = 608 TP = GA = GG = GP = 16 Total Revenue = (Leave off $ sign and commas) Hint: Total Revenue is between 5536 and 5646.

Please compelete long detailed answer and be specific please draw graphs with your answers of available, but they are not required. If you use graph, you can also explain what information you want me to get from the graph. Please Limit all answers upto words of 300.

1. Suppose the American Medical Association (AMA) wants to improve the quality of physicians. Give TWO examples of how they could change their licensing policies to accomplish this.
2. Using moral hazard as the main basis of your reasoning, explain why having health insurance leads to more use of health care goods and services than is economically desirable.
3. Between 2008 and 2010, TOTAL EMPLOYMENT in the United States declined by approximately 5.1 percent. During this same time, jobs in the Health Care industry increased by 6.4 percent. Using theory discussed in this course, explain WHY the health care industry did not decline with the rest of U.S. employment.
4. Explain why a majority of individuals in nursing homes are women and/or poor.
5. The total volume of prescription and non-prescription pharmaceuticals is about a 50/50 split. The total revenue, however, is far from that with more than 6 times the amount of revenue going towards prescription. Explain why this is.
6. Define revenue risk and explain why this risk is so low in the medical field.
7. Explain the positive externalities of a flu shot. Be specific of who receives these externalities. Your answer should include an explanation of what externalities are.

On January 1, 2020, Flounder Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a price of $120,632. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Flounder Company a 12% yield. The bonds are classified as held-to-maturity.

(a)

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.)

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Attempts: 0 of 3 used

Using multiple attempts will impact your score.

20% score reduction after attempt 2

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c) and (d)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows:

Required:

1. Based on annual revenue, what amount of the central office costs are allocated to each resort?

2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools?

3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort?

11.2 Can a Swimming Pool Be a Deductible Medical Expense? Finding and Analyzing the Relevant Code Sections and Regulations and a Relevant Revenue Ruling Facts: Your clients, Holly and Greg Orman, are a married couple with two young sons, Blake (age 6) and Jonah (age 4). In late 2014, the Ormans learned that Blake has a medical condition that makes his muscles very weak. In addition to prescribing physical therapy that will include exercises to strengthen Blake's muscles, Blake's doctor suggested that swimming regularly could greatly improve Blake's muscle strength. The Ormans live in a rural area far from any public swimming pool. They are considering installing a swimming pool in the backyard at their house. However, the Ormans would like to know whether the cost of installing a swimming pool may be deductible as a medical expense for federal income tax purposes. Required: First step: Identify and properly cite the Code sections and regulations that discuss the deductibility of medical expenses. Indicate whether and, if so, where, they indicate whether the cost of a swimming pool may be deductible as a medical expense. Second step: Find and review a relevant Revenue Ruling that involves the issues of whether the cost of a swimming pool may be deductible as a medical expense. Provide a proper citation for the Revenue Ruling. Briefly describe the facts of the ruling and the IRS's reasoning and conclusion(s). Indicate whether you think the IRS would reach the same conclusion(s) in the Ormans' situation and why or why not.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $23.
• The purchasing manager buys the T-shirts for $9 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 33 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $96,000 per quarter plus 12 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for quarters 1, 2, and 3.
2. Determine budgeted cost of merchandise purchased for quarters 1, 2, and 3.
3. Determine budgeted cost of good sold for quarters 1, 2, and 3.
4. Determine selling and administrative expenses for quarters 1, 2, and 3.
5. Complete the budgeted income statement for quarters 1, 2, and 3.

Part 1:

Budgeted Sales Revenue : Quarter 1: Quarter 2: Quarter 3:

Part 2:

Budgeted cost of Merchandise Purchased : Quarter 1 : Quarter 2 : Quarter 3 :

Part 3

Budgeted cost of goods sold : Quarter 1: Quarter 2: Quarter 3 :   

Part 4

Budgeted Selling ad administrative expenses : Quarter 1: quarter 2 : Quarter 3 :

.

Garrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $140,000; buildings, $175,000; and equipment, $35,000.

Required:

Q1. Shine Bright Housekeeping provides two types of housekeeping services, Basic and Gold.
It charges customers $30 for a unit of Basic service and $50 for a unit of Gold service. Its direct costs in providing each unit of service are:

Basic $9, Gold $15. All other costs of the business are fixed and total $7,350 per month.

In all the sub-parts of this part (i.e., part 3.1, 3.2, etc.), assume that Shine Bright always provides a constant mix of the two services, namely 3 units of Basic service for every 2 units of Gold service....

3.1 What is Shine Bright’s Contribution Margin Ratio (CMR)?

Contd.

2

3.2 How much Sales Revenue should Shine Bright generate monthly to report Net-Income-after-tax (NIAT) of $11,760? The income tax rate is 20%. Use the CMR concept.

3.3. What is Shine Bright’s Degree-of-Operating-Leverage (DOL) at the Sales Revenue computed in part 3.2 above?

3.4. Using the DOL concept to get your answer, what will be Shine Bright’s NIAT if the Sales Revenue falls 10% from the level in part 3.2 ?

4. Using B to stand for units of Basic service, and G to stand for units of Gold service, specify the equation whose solutions are the combinations of the amounts of the two services that would allow Shine Bright to break-even each month.

That is, specify the “break-even function” f (B, G) = where C is a constant.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,460. The company expected to work 120 jobs in February, but actually worked 122 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)