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.

ALG Co. is launching a new, innovative product onto the market and is trying to decide on the
right launch price for the product. The product’s expected life is three years. Given the high level
of cost which have been incurred in developing the product, ALG Co. wants to ensure that it sets
its price at the right and has therefore consulted a market research company to help it do this. The
research, which relates to similar but not identical product launch by other companies, has reveal
that at a price of Ghc 60, annual demand would be expected to be 250,000 units. However, for
every Ghc 2 increase in selling price, demand would be expected to fall by 2,000 units and for
every Ghc 2 decrease in selling price, demand would be expected to increase by 2,000 units.
A forecast of the annual production cost which would be incurred by ALG Co in relation to the
new product are as follows:
Annual production (units) 200,000 250,000 300,000 350,000
Ghc Ghc Ghc Ghc
Direct material 2,400,000 3,000,000 3,600,000 4,200,000
Direct labour 1,200,000 1,500,000 1,800,000 2,100,000
Overheads 1,400,000 1,550,000 1,700,000 1,850,000

Required:
a. Calculate the total variable cost per unit and total fixed overheads.

b. Calculate the optimum (profit maximizing) selling price for the new product and
calculate the resulting profit for the period.
Note: P = a – bx then MR = a – 2bx

The sales director is unconvinced that the sales price calculated in (b) above is the right one to
charge on the initial launch of the product. He believes that a price should be charged at the launch
so that those customers prepared to pay a higher price for the product can be skimmed off first.

Required:
Discuss the conditions which would make market skimming a more suitable pricing strategy for
ALG Co. and recommend whether ALG Co. should adopt this approach.

Just this part of the question is required with detailed explanation :

Required:
Discuss the conditions which would make market skimming a more suitable pricing strategy for
ALG Co. and recommend whether ALG Co. should adopt this approach.

1. The selling price, variable costs, annual fixed costs, annual depreciation charges, and marginal tax rate for the project are shown below.  If sales are equal to 14,000 units, what is the after-tax profit?
   Sales Price	$3.00
   Variable Costs	$1.40
   Fixed Costs	$15,000.00
   Depreciation	$6,000.00
   Tax Rate	35%

1. A mesquite farmer wants you to invest in his mesquite harvesting business.  He sells mesquite wood to several "Texas-style" steakhouses that serve authentic "Mesquite-smoked" steaks.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per cord of mesquite	$72.00
   Variable costs (per cord)	$40.00
   Fixed Costs (per year)	$400,000.00
   Depreciation (per year)	$30,000.00
   Salary	$50,000.00
   Tax Rate	25%

   Based on this information, How many cords of mesquite wood must be harvested and sold the first year before there is any profit available to you? (Remember to include the farmer's salary in your costs that must be covered.)

1. A watermelon farmer wants you to invest in his watermelon business.  He sells watermelons to several roadside “farmer’s markets” every week.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per watermelon	$6.00
   Variable costs (per melon)	$1.30
   Fixed Costs (per year)	$30,000.00
   Depreciation (per year)	$6,000.00
   Salary	$40,000.00
   Tax Rate	25%

   Based on this data, how many watermelons must be harvested and sold the first year before there is any profit available to you?

1. A mesquite farmer wants you to invest in his mesquite harvesting business.  He sells mesquite wood to several "Texas-style" steakhouses that serve authentic "Mesquite-smoked" steaks.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per cord of mesquite	$72.00
   Variable costs (per cord)	$40.00
   Fixed Costs (per year)	$400,000.00
   Depreciation (per year)	$30,000.00
   Salary	$50,000.00
   Tax Rate	25%

   Based on these data, how much profit will you receive if he sells 18,000 cords?

1. A watermelon farmer wants you to invest in his watermelon business.  He sells watermelons to several roadside “farmer’s markets” every week.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per watermelon	$6.00
   Variable costs (per melon)	$1.30
   Fixed Costs (per year)	$30,000.00
   Depreciation (per year)	$6,000.00
   Salary	$40,000.00
   Tax Rate	25%

   Based on these data, how much profit will you receive if he sells 20,000 melons?

1.    Which statement below is FALSE?

A         A monopoly faces a downward-sloping demand curve for the good that it sells.

B          A single-price monopoly cannot sell further units of the good without cutting the price.

C          Total revenue is maximized where marginal revenue is zero.

D         In the short run, a single-price monopoly maximizes profit where average cost equals average revenue.

E          In the long run, a single-price monopoly seeking to maximize profit would exit the industry if average total cost were to exceed price.

2.    Which statement below is FALSE?

A         In the case of a monopoly, marginal revenue is less than price at each level of output.

B          In the case of a monopoly, marginal revenue rises as output increases.

C          Ceteris paribus, a single-price monopoly charges a higher price than if it were organized as a competitive industry.

D         Ceteris paribus, a single-price monopoly sells a lower output than if it were organized as a competitive industry.

3.         Which statement below is FALSE?

A         Ceteris paribus, a single-price monopoly sells a lower output than if it were organized as a competitive industry.

B          If the scope for price discrimination were sufficiently great, a monopoly might have a higher output than would occur if it were organized as a competitive industry.

C          If economies of scale were sufficiently great, a monopoly might have a higher output than if it were a competitive industry.

4.    Which statement is FALSE?

A         A monopoly faces a falling demand curve for the good that it sells.

B          A monopoly can never make a loss.

C          A single-price monopoly can sell another unit only by cutting the price.

D         A monopoly faces a marginal revenue curve that is below the demand curve that it faces.

E          A single-price monopoly charges a price that exceeds the marginal revenue obtained through the sale of the last unit.

5.         Which of the following is NOT a necessary condition for price discrimination?

A         A seller who faces a downward-sloping demand curve for the good that she sells.

B          A seller who can charge each customer a different price.

C          A seller who can identify people with different price elasticities of demand.

D         A seller who can separate these people into different groups.

E          A seller who can prevent resale of the good by members of one group to members of another.

6.    Which is NOT an example of price discrimination?

A         A seller charging two different prices for a good with the difference in price entirely explained by the difference in the cost of supply.

B          A seller charging the same price for a good in two different markets where costs of supply differ between the two markets.

C          A doctor charging different prices to different patients.

D         Simultaneous publication of cloth and paperback editions of a book.

E       Showing a movie on broadcast TV several years after its first run in movie theaters.

7.    Which statement below is TRUE?

A      Successful price discrimination necessarily increases output.

B       Successful price discrimination necessarily increases consumer welfare.

C       Successful price discrimination necessarily increases profit for the seller.

D      Successful price discrimination necessarily raises prices for everyone.

E       Successful price discrimination necessarily lowers prices for everyone.

8.         Tying and bundling both involve selling two or more goods. Which business practice always pairs complements?

A         tying

B          bundling

Tax Depreciation Lab Assignment: Prepare an excel Spreadsheet to calculate MACRS depreciation on the following assets. Use the MACRS tables to look up the proper % to use for depreciation each year.

Business Assets:

Date

Item                             Purchased        Amount           Bus. Use         Life

Truck                           2/05/17            $28,000             100%            5 yr.

Mower 2                      3/08/17               12,000             100%            7 yr

Seeder                         3/01/16                 3,400             100%            7 yr

Equipment                   6/25/16                 1,595             100%            7 yr

            Laptop                         5/18/16                 2,200             100%            5 yr.

            Printer                         6/01/15                  900              100%            5 yr.

            Copier                         3/02/15                2,100            100%            5 yr.

            Mower 1                      3/01/14                6,000              100%            7 yr

§179 expense is elected on Mower 2 (§179 was not taken on assets purchased in prior years).

Table 2: All figures in Billions of Dollars

a.                Complete the table by determining the aggregate expenditure and the unplanned inventory change at all income levels

b.               Determine the marginal propensity to consume (MPC) and marginal propensity to save.

c.                What is the equilibrium level of income?   

d.               Calculate the value of the multiplier   

e.      What is the level of disposable income at all output levels and what effect would an increase in the tax level have on the equilibrium level of output?

Please use minitab

The air flow through a value on an automotive air pollution control device is believed to be controlled by three discrete factors; Arm Length, Spring Load, and Bobbin Depth. Use the data given below to determine if any of the factors have a statistically significant impact on average air flow.

plot this data into a bar graph: PYTHON

data=pandas.read_csv(r'data/tv_shows.txt', low_memory=False)

print((data))

print((data.columns))

 TV Shows : Rating
0           ---------------------
1   A Discovery of Witches : 100%
2                    Barry : 100%
3              Unforgotten : 100%
4                      Veep : 98%
5               Killing Eve : 97%
6                  Billions : 96%
7            Les Misérables : 96%
8                 Supergirl : 89%
9          Call the Midwife : 80%
10          Game of Thrones : 77%
11           Now Apocalypse : 77%
12             The Red Line : 69%
13         Lucifer : No Score Yet
14                Chernobyl : 95%
15               Dead to Me : 85%
16           Better Things : 100%
17      Brooklyn Nine-Nine : 100%
18           Tuca & Bertie : 100%
19      State of the Union : 100%
20        The Twilight Zone : 75%
21                  Happy! : 100%
Index(['TV Shows : Rating'], dtype='object')

In [9]:

display(data)

In C++

First create the txt file given below. Then complete the main that is given. There are comments to help you. An output is also given You can assume that the file has numbers in it

Create this text file: data1.txt

-59 -33 34 0 69 24 -22 58 62 -36 
5 45 -19 -73 62 -5 95 42 

Main

#include <iostream>
#include <fstream>
#include <string>
#include <iomanip>
using namespace std;

const int MAXSIZE = 100;

// Prototypes





int main()
{
    int nums[MAXSIZE];
    int searchFor;
    int indexFound = -1;
    int numElems;
    double average;
    string fileName;
    char again;

    do
    {

        cout << "Enter the file name: ";
        cin >> fileName;

        // Call the function fillArray. It has the fileName, the nums array and
        // the numElem passed in (in that order). It will calculate the numElems
        // Description of function given below



        // Call the function printArray. It has the nums array and
        // the numElem passed in (in that order). 
        // Description of function given below





        // Call the function findAverage. It has the nums array and
        // the numElem passed in (in that order). It stores the value
        // that is returned in the average variable declared above.
        // Description of function given below




        // Asks the user what number they want to search for
        cout << endl << endl;
        cout << "Enter a number between -100 and 100 to search for: ";
        cin >> searchFor;

        // Call the function findValue. It has the number being searched for
        // the nums array and the numElem passed in (in that order). 
        // It stores the index of the position in the array where the 
        // number was found in the indexFound variable declared above.
        // Description of function given below



        // Right the if statement to print whether the number was found.
        // If it was found, it will print the inde of where it was found.
        // (See output for what should be printed






        cout.setf(ios:: fixed);
        cout.precision(2);
        cout << "The average of all the numbers in the array is " << average << endl;
        cout << endl;
        cout << "Do you want to do this again? (Y/N): ";
        cin >> again;
    } while (toupper (again) == 'Y');
    return 0;
}



// Function: findValue
// This function has the value being serachedd for, the array and the number of 
// elements passed in. I searches the array and when it first finds it, it
// stops searching and returns the index of where it was found. If it is not 
// in the array, it returns a -1






// Function: findAverage
// This function has the array and the number of elements passed in.
// It computes the average of the numbers in the array and returns it.






// Function: printArray
// This function has the array and the number of elements passed in.
// It prints the array in neat columns, with 7 numbers per line







// Function: fillArray
// This function should open the file with the name that passed into it. If the file does
// not open correctly it should exit the program. It should
// then read in the numbers and load them into the array. 
// make sure you check that you don't exceed the array size.
// If the file has too many numbers, your program should not put the 
// extra numbers in the array, the array will just be full.
// This function determines the number of elements in the array.
// This function should not call any other user defined functions.

Sample Output

Enter the file name: data.txt
    -59    -33     34      0     69     24    -22
     58     62    -36      5     45    -19    -73
     62     -5     95     42

Enter a number between -100 and 100 to search for: 62
62 was found in index 8
The average of all the numbers in the array is 13.83

Do you want to do this again? (Y/N): Y
Enter the file name: data1.txt
    -59    -33     34      0     69     24    -22
     58     62    -36      5     45    -19    -73
     61     -9     95     42    -73    -64     91
    -96      2     53     -8     82    -79     16
     18     -5    -53     26     71     38    -31
     12    -33     -1    -65     -6      3    -89
     22     33    -27    -36     41     11    -47
    -32     47    -56    -38     57    -63    -41
     23     41     29     78     16    -65     90
    -58    -12      6    -60     42    -36    -52
    -54    -95    -10     29     70     50    -94
      1     93     48    -71    -77    -16     54
     56    -60     66     76     31      8     44
    -61    -74     23     37     38     18    -18
     29     41

Enter a number between -100 and 100 to search for: 52
The number 52 was not found in the array
The average of all the numbers in the array is 1.48

Do you want to do this again? (Y/N): y
Enter the file name: data.txt
    -59    -33     34      0     69     24    -22
     58     62    -36      5     45    -19    -73
     62     -5     95     42

Enter a number between -100 and 100 to search for: 95
95 was found in index 16
The average of all the numbers in the array is 13.83

Do you want to do this again? (Y/N): n

Stark Industries is considering adding a vibranium shield to the Iron Man Suits the company manufactures for the U.S. Armed Forces. The equipment to build the shields has a purchase price of $1,100,000, and the company will spend $100,000 to ship the equipment to its plant and install it on the production floor. Stark Industries engineers expect the machine to have a $50,000 salvage value at the end of its 10-year life and a practical capacity of 1,200 shields per year. The new equipment requires an average of $25,000 investment in working capital to keep the equipment running efficiently; the $25,000 investment in working capital is fully recoverable at the end of the investment.

Stark Industries managerial performance evaluations include an 18% charge on invested capital. The company can obtain a 6% return on short-term investments and its current weighted average cost of capital is 15%.

Stark Industries’ negotiations with its union regarding the staffing of the new shield-manufacturing machine resulted in the firm agreeing to hire new workers and pay them $200,000 annually. The union agreement also stipulated that the employees have the option to request a salary revision after the fifth year of the agreement of up to 5% of the agreed salary. The company also agreed to invest $40,000 to train the new employees on the equipment when hired. Training the new employees will be on the job, which will likely reduce the output for the first year of the project by up to 100 shields; in the worst case scenario the decrease in output would be 25%.   

Each shield consumes $500 worth of vibranium (imported from Wakanda). Recent contract negotiations with Wakanda and King T’Challa have locked-in this cost for the next five years and specify an increase to $550 per shield thereafter. The current contract negotiated with the U.S. Armed Forces guarantees a price of $960 per shield for the first 5 years in the contract. Tony Stark, Stark Industries’ CEO, believe it is unlikelythe government will require a reduction of more than 10% of the price per shield in the next contract negotiation.

Common practice in the tax department of Stark Industries is to depreciate the full value of any acquired assets regardless of their salvage values. Pepper Potts (Stark Industries CFO) determined the equipment is 7-years class property (see depreciation percentages for this type of property in Exhibit 1). Stark Industries is subject to a 26% tax rate (21% corporate tax rate plus 5% blended rate of state taxes).[1]

Exhibit I: Depreciation Schedule (in percentages) for 7-year property.

1          14.29

2          24.49

3          17.49

4          12.49

5            8.93

6            8.92

7            8.93

8            4.46

Required (Please, provide supporting schedules for all your answers):

[20 points] Determine the NPV of the project. Clearly state the assumptions for your calculations. (Hint: since your will be evaluating more than one scenario, it will be on your best interest to use formulas and cell references in your Excel worksheets.)

[20 points] Using the information on the project and the assumptions you made in part I indicate the following:

[5 points] What is the Internal Rate of Return of the project?

[5 points] What is the after-tax payback period of the project?

[5 points] How sensitive is the viability of the project to the choice hurdle rate assumptions you made part I? (Indicate the NPV for each of the alternative hurdle rates you use).

[5 points] What will be the lowest price that Stark Industries may be able to accept upon contract renegotiation in year 5 that would continue to make the project viable?

[1] We are assuming the 2017 Tax Reform Legislation applies to this scenario.