Meridian Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,000 units of Prime and 1,000 units of Luxuria in 2016.The following estimates are given for 2016:

                                                                                  Prime    Luxuria

        Selling price                                                     $200        $500

        Direct materials                                                   20             50

        Direct labor                                                          40          150

        Manufacturing overhead                                  40          100

Meridian had an inventory of 200 units of Prime and 75 units of Luxuria at the end of 2015. It has decided that as a measure to counter stock outages it will maintain ending inventory of 350 units of Prime and 200 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $10. There were 100 units of Crimpson in stock at the end of 2015.The management does not want to have any stock of Crimpson at the end of 2016.

How many units of Prime watches must be produced in 2016?

What is the amount budgeted for purchase of Crimpson in 2016?

What is the total budgeted cost of sold for Meridian Industries in 2016?

Estimate House Paints Demand for Sherwin-Williams

1) What is regression equation for paint sales using multiple linear regression model? Please include regression results using Excel?)

2) If A=180, P=$14, and M=20, what is an approximate 95 percent prediction interval for paint sales?

1. Suppose a bond such as a Treasury bill, or T-bill, promises to pay $1000 a year, and the interest rate is 15%. Given this information, we know that the bond's price must be:

2. Answer the following questions using the following data

Y=C+I+G

C=120+0.5(Y-T)

I=100-10r

T=40

     = Y-20r

M=600

P= 2

1. Identify the each of the variables and briefly explain their meanings.
2. Find the IS curve and the LM curve and graph them in a diagram.
3. Determine the equilibrium interest rate and output.
4. Calculate the The multiplier in this economy

3. Suppose an economy represented by the fallowing equilibrium equation 0.8 y = 2500 and suppose that government decrease spending (G) by 100, what will happen to the output in the economy.

4. Illustrate the following situations in the different graphs;
5. 1. Changes in equilibrium when money supply increase and decrease
   2. Changes in equilibrium when government impose the tax and cut the tax (T)
   3. Changes in equilibrium when government reduces/increases the expenditure (G)

The country of Freedonia produces cars and avocados using capital, which is specific to cars; land, which is specific to avocados; and labor, which is mobile between the two sectors. Freedonia has 100 workers, 100 units of capital and 400 acres of land.

We assume our framework to be the “Specific-Factors Model”.

a) Define the marginal product of labor and the marginal product of land in the avocado sector. [4 marks]

b) Draw the production possibilities frontier for Freedonia with avocados on the horizontal axis, and cars on the vertical axis. [2 marks]

c) Explain how the price of avocados relative to cars is determined in the absence of trade. [2 marks]

d) Draw the wage curves of both sectors in one single graph, with the amount of labor used in cars (measuring from left to right along the horizontal axis), and the amount of labor used in avocados, moving in the reverse direction. [4 marks]

e) What does the assumption of free mobility of labor imply for the no-trade equilibrium wage in Freedonia. Explain. [4 marks]

There are 2 countries, Home and Foreign, and 2 goods, Wine and Cheese. In each country
the are 150 workers. But not all workers are the same: some workers are cheese-makers and some
workers are wine-makers. Each cheese-maker can produce one pound of cheese and zero bottles of
wine, and each wine-maker can produce one bottle of wine and zero pounds of cheese. In the Home
country there are 100 cheese-makers and 50 wine-makers, and in the Foreign country there are 50
cheese-makers and 100 wine-makers. The relative demand for Cheese of each individual worker is
RD =
Cc/Cw
=
1/ (Pc/Pw)
.

1. Suppose that both countries are closed to international trade, but cheese-makers and wine-
makers can trade with one another within each country. What is the price of cheese (in terms

of wine) in each country?
2. Are both Cheese-makers and Wine-makers better off under free trade than under international
autarky in the Home country?

According to a research​ institution, the average hotel price in a certain year was ​$95.82 . Assume the population standard deviation is ​$18.00 and that a random sample of 36 hotels was selected. Complete parts a through d below. a. Calculate the standard error of the mean. sigma Subscript x overbar equals​$nothing ​(Round to two decimal places as​ needed.) b. What is the probability that the sample mean will be less than ​$98 ​? Upper P left parenthesis x overbar less than $ 98 right parenthesis equalsnothing ​(Round to four decimal places as​ needed.) c. What is the probability that the sample mean will be more than ​$100 ​? Upper P left parenthesis x overbar greater than $ 100 right parenthesis equalsnothing ​(Round to four decimal places as​ needed.) d. What is the probability that the sample mean will be between ​$94 and ​$96 ​? Upper P left parenthesis $ 94 less than or equals x overbar less than or equals $ 96 right parenthesis equalsnothing ​(Round to four decimal places as​ needed.

Swellingham is a fishing port near the Fishy Banks. There are N fishermen and potential fishermen in Swellingham, and N is very large On any given day, M is less than or equal to N fishermen. take their boats out to Fishy Bankes to fish. The catch per boat per day is 100/M tons of fish. The price of fish on the world market is $100 per ton. The cost to take a boat out on a particular day: fish or do not fish. The payoff to "do not fish" is always 0. Let M be the state variable for this problem.

A. Determine how the profit (per day) of a representative fisherman varies as M changes. This is the payoff to the strategy "fish"

B. On a coordinate graph, draw the curve or line representing the payoff to an agent who fishes as a function of the state variable M. On the same graph, draw the curve or line representing the payoff to a nonfisher.

C. Determine whether the two curves intersect, and if so where; and draw conclusions with respect to the value to the state variable.

In the bond market, we find the following Treasury bonds and their prices. Bond price $980 $98 $96 Maturity 2 years 1 year 2 years Face value $1,000 $100 $100 Coupon rate 10% 0% 0% a) Compute the YTMs for the above three bonds. b) Using the two zero coupon bonds, compute the forward rate that is applied for the period from the end of Year 1 to the end of Year 2. c) Suppose that we need the above coupon bond for your cash requirements. However, due to some reasons, we cannot buy the coupon bond. Therefore, instead of the coupon bond, we decide to buy 1 year and 2 year zero coupon bond. If this alternative investment has the same cash flows as the coupon bond, how many bonds we need to buy (i.e., XX 1 year bonds and OO 2 year bonds)? What is the cost for this alternative bond investment?

Increases in the prices of services due to improvement in its quality indicate a(n) _____. a. decline in productivity. b. decline in real GDP. c. increase in output. d. decline in manufacturing output. e. increase in technological progress.

Suppose a bank has $850 million in vault cash and a deposit in the Fed of $100 million. If the bank’s required reserves equal $500 million, then the bank has excess reserves of: a. $100 million. b. $350 million. c. $400 million. d. $450 million. e. $500 million.

Assume that the yen price of one U.S. dollar rises to 80 yen and that the Bank of Japan has a target exchange rate of 75 yen per dollar. As a result, the Bank of Japan will intervene in the foreign exchange market by: a. selling U.S. dollars and buying yen. b. selling both U.S. dollars and yen. c. buying U.S. dollars and selling yen. d. buying both U.S. dollars and yen. e. buying U.S. Treasury securities.