Which of the following is an example of a constraint?

• Sarah decides not to purchase an additional pair of Ugg boots because she already has two pairs at home.

• Peter's Place can serve 300 people in its banquet room, and often has to turn away large parties.

• A SouthCoast Clothing decides that five machines and 15 workers is the most efficient in production.

• Harbor Sweets will produce to the point where marginal revenue is equal to marginal cost.

Kite Company has the following report for August:

Fill in the missing amounts. For items in the variances columns, indicate F or U.

The following question is about markets and government policies.

a. Explain the difference between a binding and non-binding price ceiling. What is the intuition behind this?

b. If the government is trying to increase tax revenue, what should they know about the Laffer Curve?

c. Draw and fully explain the welfare impacts of a per unit tax on the seller.

d. If the government wants to slow consumer spending, why might they consider using taxation? Explain your answer.

You have determined that your firm’s own-price elasticity is -1.5 and that your firm’s cross-price elasticity with a competitor is 0.5. Last month your competitor increased prices by one percent. Today, in response, your manager has proposed also increasing prices by one percent. Your manager’s reasoning that by matching the competitor’s price increase, your firm will increase revenue. Would you support or refute your manager’s argument?

On September 1, 2020, Betty DeRose, Inc. received $45,000 cash from a customer as payment for services to be performed over the next 24 months. Betty DeRose, Inc. received $45,000 cash from another customer on May 31, 2021 as payment for services to be performed over the next 18 months. Calculate the total amount of unearned revenue that would appear in Betty DeRose, Inc's December 31, 2021 balance sheet.

"Interpreting Tax Research and Tax Representation Guidelines"

• Compare the American Institute of CPAs’ (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (IRS). Suggest which document creates better guidance in the preparation of tax returns and written advice provided to taxpayers. Suggest measures the AICPA could take to ensure that CPAs are compliant with either set of standards. Defend your position.

Anytown's fiscal year end is June 30. Anytown sends out its real estate tax bills on July 1, 20X1. The billings amount to $5 million, which 25% is due August 1 20X1, 25% is due December 1, 20X1, and 50% is due February 1, 20X2. What amount of these billings should Anytown recognize as revenue in its June 30, 20X1 governmental fund financial statements?

A monopoly has an inverse demand function given by p = 120 - Q and a constant marginal cost of 10. a) Graph the demand, marginal revenue, and marginal cost curves. b) Calculate the deadweight loss and indicate the area of the deadweight loss on the graph. c) If this monopolist were to practice perfect price discrimination, what would be the quantity produced? d) Calculate consumer surplus, producer surplus, and deadweight loss for this monopolist under perfect price discrimination.

2)   A proposed project has fixed costs of $25,000 and a depreciation of $8,000 per year. The variable costs are $7 per unit and sales are $9 per unit.

      a)   What is the breakeven point in units produced?

      b)   What is the breakeven point in dollars of revenue?

      c)   If the operating profit at 20,000 units is $7,000. What is the degree of operating leverage?

            d)   If sales increase to 22,000 units, what will operating profits be? What will the new operating leverage be?

Garcia Company has employed a bookkeeper who is inexperienced. On December 30, after reviewing the records for the year, you discover the following error. On August 1, Garcia Company received $600 on account (from a customer for services previously performed and billed on July 15). The bookkeeper recorded this by debiting Cash and crediting Service Revenue. Required: Prepare a correcting entry on December 30. Make sure to enter the day for each separate transaction.