You have the following information for Metlock, Inc. for the month ended October 31, 2022. Metlock uses a periodic method for inventory.

A) Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.)

B) Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.

(1) LIFO.
(2) FIFO.
(3) Average-cost. (Round answers to 0 decimal place, e.g. 125.)

C) Calculate gross profit rate under each of the following methods

(1) LIFO.
(2) FIFO.
(3) Average Cost. (Round answers to 1 decimal place, e.g. 51.2%)  

IS-LM closed economy – SR

The Economy of North Haverbrook is described by the following agents and characteristics.

consumers C = 50 + 0.85 (Y-T)

(taxes) T = 100

(government expenditures) G = 100

(investments) I = 500 – 50r

(money supply) M = 3,000

(price levels) P = 1

(money demand) L (r,Y) = Y – 10r

(potential output) Y* = 3200

The goods and services markets in equilibrium is described as: Y = AE, where AE = C + I + G, and money market is in equilibrium when M/P = L(r,Y).

[2 points each, except for h) 4 points]

1. Find the aggregate expenditure function

2. Find the IS curve

3. Find the LM curve

4. Find the equilibrium exchange rate and output (Y, r)

5. Find the aggregate demand curve

6. Find Private savings, Public Savings and National savings

7. Do we have an expansionary gap or recessionary gap? What size?

8. If fiscal policy is used (government expenditure: G), how much +/- change will be required to close the gap?

1. If fiscal policy is not used, how will the gap close? (impact on prices and output – you can graph a diagram if it helps)

We continue from the two tables in lab 3 part 2, and practice with functions and the GROUP BY statement. The data in each table should be as below

Table Product:

Table Vendor:

Please write the SQL script and provide screenshots of results for these below queries. Please include the SQL in text format, and all screenshots in one single document.

1. Find the total number of table products
2. Find the average price of all tables
3. Find the total number of products from each vendor
4. Find the average prices by vendors (please include vendor names in the query result)
5. Find the average prices by states

Q1: The only definitive term that must be provided in order to have a contract under the UCC is price.

a) true

b) false

Q2: Big Box Store orders 1,000 boxes of white twinkle lights from Lumination Outlet. When Big Box receives the order, it notices that 800 of the boxes contain white twinkle lights and 200 of the boxes contain orange twinkle lights. Big Box:

a) can reject the entire order under the force majeure rule

b) must pay for the twinkle lights because the quantity was stated

c) must pay for the twinkle lights because 80% of the order was correct, so there was substantial performance

d) can reject the entire order under the perfect tender rule

Q3: Ace Inc sends a purchase order to Office Supply Mart ordering 100 office printers for $75 per printer. Ace's purchase order states that the parties will arbitrate all disputes. Office Supply Mart sends 100 office printers along with an invoice for $7500. The invoice states that parties will litigate all disputes in Fulton County, Georgia. Despite the conflict in the resolution of disputes provisions, a contract exists between these two parties?

a) true

b) false

1)In monopolistic​ competition, profit is maximized when the amount produced is such that

A.

marginal revenue is greater than marginal cost.

B.

marginal revenue equals marginal cost.

C.

total revenue is maximized.

D.

total revenue equals total cost.

2)Dole Co. operates in a monopolistically competitive market. To try to earn an economic​ profit, Dole Co. will

A.

increase output.

B.

prevent other firms from entering the market.

C.

continually seek to differentiate its product.

D.

increase its​ product's price.

3) How does a​ single-price monopoly determine the price it will charge its​ customers?

A​ single-price monopoly​ _______.

A.

produces the quantity at which marginal revenue equals marginal cost and sets the price equal to marginal revenue at that quantity

B.

charges the price from the demand curve that corresponds to the quantity where the price elasticity of demand equals 1

C.

produces the quantity at which average total cost is minimized and charges the highest price consumers will pay for that quantity from the demand curve

D.

produces the quantity at which marginal revenue equals marginal cost and charges the highest price consumers will pay for that quantity from the demand curve

4) What are some of the ways that​ real-world airlines price​ discriminate?

​Real-world airlines price discriminate by separating travelers according to​ _______.

A.

their price elasticity of​ demand, their form of​ identification, and whether they are traveling first class or economy

B.

how far in advance they purchase​ tickets, physical disabilities that make boarding​ difficult, and the length of time required to make a connection

C.

their price elasticity of​ demand, whether they will stay at their destination over a​ weekend, and how far in advance they purchase tickets

D.

their willingness to go through airport​ security, their proximity to an​ airport, and the number of children traveling in the family

5) AT&T Moves Away From​ Unlimited-Data Pricing

​AT&T said it will eliminate its​ $30 unlimited data plan as the crush of data use from the iPhone has hurt call quality.​ AT&T is introducing new plans costing​ $15 a month for 200 megabytes of data traffic or​ $25 a month for 2 gigabytes.​ AT&T says those who exceed 2 gigabytes of usage will pay​$10 a month for each additional gigabyte.​ AT&T hopes that these plans will attract more customers.

​Source:

The

Wall Street

Journal​,

June​ 2, 2010

Explain why​ AT&T's new plans might be price discrimination.

​AT&T's new plans might be price discrimination because​ ______.

A.

​AT&T is selling data plans at different prices but its marginal cost is the same regardless of how much data is downloaded

B.

​AT&T is a monopoly and only monopolies can price discriminate

C.

​AT&T changed their price structure because of an increase in demand for data traffic

D.

the cost of supplying different sizes of data plans increases as more data is downloaded

Sugar Land Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by a MBA student. The production line would be set up in unused space (Market Value Zero) in Sugar Land’ main plant. Total cost of the machine is $240,000. The machinery has an economic life of 4 years, and MACRS will be used for depreciation. The machine will have a salvage value of $25,000 after 4 years. MACRS calculated by 5 year period

The new line will generate Sales of 1,250 units per year for 4 years and the variable cost per unit is $100 in the first year. Each unit can be sold for $200 in the first year. The sales price and variable cost are expected to increase by 3% per year due to inflation. Further, to handle the new line, the firm’s net working capital would have to increase by $30,000 at time zero (No additional NWC is needed in years 2, 3 and the NWC will be recouped at the end of year 4). The firm’s tax rate is 40% and its weighted average cost of capital is 10%.

The text below can be copy/pasted into the submission box below. Please save your work often as you type your answers.

What are the annual depreciation expenses for years 1 through 4? (10 P0ints)

Calculate the annual sales revenues and variable costs (Don’t include depreciation in your cost estimation), for years 1 through 4. (15 points)

Estimate annual (Year 1 through 4) operating cash flows (25 Points)

Estimate the after tax salvage cash flow (5 points)

Estimate the net cash flow of this project (25 points)

Estimate the NPV, IRR, MIRR, and profitability Index of the project. (20 points)

Your mining company is considering an expansion of operations into iron ore. Your engineers surveyed a particular piece of land (the survey costs $200,000) and concluded the following:

• You can extract 100,000 tons of iron ore per year.

• There are 2 million tons of iron ore underneath this land (hint: 20 years' cash flows)

As you dig deeper, the operating cost to extract the ore will increase. So assume that costs will grow by 6.5 percent per year. The operating cost in the first year will be 6 million dollars (hint: the operating cost can be viewed as the COGS or expense).

Your business associates tell you the following additional information:

• The ore will sell $100 per ton for the first year, and the price is forecasted to grow by 3.3 percent per year for the next 20 years.

• We can invest in the equipment for this project right now for 15 million dollars.

The equipment is depreciated straight-line over 20 years, with an assumed salvage value of zero.(hint: the annual depreciation is 15/20=0.75 million).

Assume a constant tax rate of 40%, and an after-tax cost of capital of 10% (hint: 10% can be viewed as the discount rate for future cash flows). All numbers are nominal. You will need to use Solver in Excel to answer (b) and (c).

a) What is the net present value of this project? (Hint: the annual cash flow=(revenue-cost-depreciation)*(1-tax)+depreciation)

surveying cost will have no role to play in our NPV analysis because it has already happened.

b) Suppose you are uncertain about the growth rate for the operation cost. What growth rate for the operating cost would you need in order to break even(net present value of zero) from this project?

c) Go back to assuming the original growth rate in costs. How high would the initial investment in the equipment have to be in order for you to break even from the project?   

(In Chegg Study, it has an answer to this question, but I think the answer neglect the discount rate for future cash flows, please show the the right answer and the complete process of calculating it. Thank you:)

Budget Project - Master Budget for a Garneau Manufacturer Garneau Manufacturing Ltd. produces and distributes a special type of chemical compound called Compound WX. The information below about Garneau's operations has been assembled to assist budget preparation. The company is preparing its master budget for the first quarter of 2016. The budget will detail each month’s activity and the activity for the quarter in total. The master budget will be based on the following information:

1. Selling price is $60 per unit in 2015 and will not change for the first two quarters of 2016. Actual and estimated sales are as follows:

Actual 2015 Estimated 2016

November: 10 000 units January: 11 000 units

December: 12 000 units February: 10 000 units

March: 13 000 units

April: 11 000 units

May: 10 000 units

2. The company produces enough units each month to meet that month’s sales plus a desired inventory level equal to 20% of next month’s estimated sales. Finished Goods inventory at the end of 2015 consisted of 2,200 units at a variable cost of $33 each.

3. The company purchases enough raw materials each month for the current month’s production requirement and 25% of next month's production requirements. Each unit of product requires 5 kilograms of raw material at $0.60 per kilogram. There were 13,500 kilograms of raw materials in inventory at the end of 2015. Garneau pays 40% of raw material purchases in the month of purchase and the remaining 60% in the following month.

4. Each unit of finished product requires 1.25 labour-hours. The average wage rate is $16 per hour.

5. Variable manufacturing overhead is 50% of the direct labour cost.

6. Credit sales are 60% of total sales. The company collects 50% of the credit sales during the first month following the month of sale and 50% during the second month.

7. Fixed overhead costs (per month) are as follows:

Factory Supervisor's Salary: $75 000

Factory Insurance: $1 400

Factory Rent: $8 000

Deprciation of Factory Equipment: $1 200

8. Total fixed selling and administrative expenses are as follows:

Advertising: $300

Depreciation: $9 000

Insurance: $250

Salaries: $4 000

Other: $14 550

9. Variable selling and administrative expenses consist of $4 for shipping and 10% of sales for commissions.

10.The company will acquire assets for use in the sales office at a cost of $300,000, which will be paid at the end of January 2016. The monthly depreciation expense on the additional capital assets will be $6,000.

11.The balance sheet as of December 31, 2015, is as follows:

Assets

Cash $80 000

Accounts Recieveable 612 000

Inventory: Raw Matrerials $8 100

add

Finished Goods 72 600 = 80 700

Plant and Equipment 1 000 000

Less: Accumulation Depreciation (100 000) 900 000

Total Assets 1 672 700

Liabilities and Equity

Accounts Payable $24 000

6% Long Term Notes Payable 900 000

Common Shares 735 000

Retained Earnings 13 700

Total Liabilites and Shareholders' Equity 1 672 700

Additional information is as follows:

• All cash payments except purchases of raw materials are made monthly as incurred.

• All borrowings occur at the beginning of each month, and all repayments occur at the end of the month. Borrowings and repayments may occur in any amount.

• All interest on borrowed funds is paid at the end of each month at a rate of 0.5% per month.

• A minimum cash balance of $30,000 is required at the end of each month.

Required: Prepare the following budgets for each of the first three months of 2016:

1. Manufacturing overhead budget.

2. Selling and administrative budget.

3. Cash budget.

Recently, Quandl announced that they were purchased by NASDAQ. Both firms provide historic market data and other information about exchange transactions in equity and futures markets, so they offer substitute products. After the merger is completed, we should expect that the price of these market data products offered by the combined firm will:

To successfully adopt a price discrimination strategy, the seller must:

Which group is offered the lower price under a price discrimation scheme?

The remaining consumer surplus is zero under a successful first-degree price discrimination scheme.

True

False

In general, women's clothing items (e.g., running shoes) have higher prices than comparable products designed for men due to price discrimination. How do the clothing sellers prevent resale in these markets?

Which of the following claims is NOT true?

Using the Case Study below, answer the following questions

Case Study

Some of the largest economic fluctuations in the U.S. economy since 1970 have originated in the oil fields of the Middle East. Crude oil is a key input into the production of many goods and services, and much of the world’s oil comes from Saudi Arabia, Kuwait and other Middle Eastern countries. When some event (usually political in origin) reduces the supply of crude oil flowing from this region, the price of oil rises around the world. U.S. firms that produce gasoline, tires, and many other products experience rising costs, and they find it less profitable to supply their output of goods and services at any given price level. The first episode of this sort occurred in the mid-1970s. The countries with large oil reserves got together as members of OPEC (the Organization of Petroleum Exporting Countries). OPEC reduced production and oil approximately doubled in price from 1973 to 1975.

Almost the same thing happened a few years later. In the late 1970s, the OPEC countries again restricted the supply of oil to raise the price. From 1978 to 1981, the price of oil more than doubled. In 1986, squabbling broke out among members of OPEC. Member countries reneged on their agreements to restrict oil production. In the world market for crude oil, prices fell by a half. This fall in oil prices reduced costs to U.S. firms. In recent years, the world market for oil has not been as important a source of economic fluctuations. Part of the reason is that conservation efforts and changes in technology have reduced the economy’s dependence on oil.

a. Explain the short-run and long-run impacts of oil price increase on output and price level in the U.S. during 1973-1975 periods using the model of aggregate demand and aggregate supply. No need to draw the AD-AS diagram. Explain in words.

b. Explain the short-run and long-run impacts of oil price fall on output and price level in the U.S. in 1986, using the model of aggregate demand and aggregate supply. No need to draw the AD-AS diagram. Explain in words.