Lesson 2: Written Assignment

1. Suppose that a nation’s production possibilities are as follows:

1. Is it possible for this nation to produce thirty million tons of food per year? Why or why not.
2. Is it possible for this nation to produce thirty million tractors per year? Why or why not.
3. Suppose this society produces twenty million tons of food and six million tractors per year. Is it operating on its production possibilities frontier?
4. What factors might cause this nation to produce at a point within its production possibility frontier?
5. Moving from point A on the frontier to point B, how much food is gained? How many tractors are lost? What is the opportunity cost per ton of food gained?
6. Moving from point F on the frontier to point G, how much food is gained? How many tractors are lost? What is the opportunity cost per ton of food gained?
7. How do your answers to parts e and f compare? What general principle do your answers reflect?

2. Plot the production possibilities frontier in Question 1 on a graph. Measure food along the horizontal axis and tractors along the vertical axis. Answer the following questions.
   1. At what point along the horizontal axis does the PPF curve cut the axis?
   2. At what point along the vertical axis does the PPF curve cut the axis?

3. Suppose that because of technological advances, the nation in Question 1 can now produce twice as many tractors at each level of food production.
   1. Plot the new production possibilities frontier.
   2. After the technological breakthroughs, is the nation on its production possibilities frontier if it produces twenty million tons of food and sixteen million tractors?
   3. At what point does the new production possibilities frontier cross the horizontal axis? The vertical axis?
   4. After the technological advances, must the nation wind up producing more tractors than before? (Hint: Be careful. Recall that the PPF presents a menu of possible production points…)

4. For 50 years, Cuba has had a centrally planned economy in which the government makes the big decisions on how resources will be allocated.
   1. Why would you expect Cuba's production possibilities (per person) to be smaller than those of the United States?
   2. What are the social institutions that Cuba might lack that help the United States to achieve allocation efficiency?

5. If Sam is producing at a point on his production possibilities frontier, then he
   1. cannot produce any more of either good.
   2. can produce more of one good only by producing less of the other.
   3. will be unable to gain from trade.
   4. is not subject to scarcity.

6. Technological progress makes the production possibilities frontier
   1. shift inward toward the origin.
   2. become more linear and less bowed.
   3. shift outward from the origin.
   4. become less linear and more bowed.

7. The nation’s production possibilities frontier is bowed outward. Suppose that the government decides to increase the production of armaments by $200 billion, and that as a result the output of consumer goods falls by $200 billion. If a further $200 billion increase beyond the initial $200 billion increase in armaments output is sought, we can expect that the output of consumer goods and services will fall further by
   1. less than $200 billion.
   2. $200 billion.
   3. more than $200 billion.
   4. There is not enough information to determine the answer.

5) The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $18532 and the packaging department is estimated at $14413. It is estimated that the brewery will produce 253 batches during the year and will spend 1393 hours running the equipment to package those batches.  

At the end of the year, it is determined that 306 batches were actually produced and 1494 were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $17664 and $12500 respectively.

What is the entry into the overhead account at the end of the year to balance the account? A credit would be entered as a negative and a debit as a positive. Round your answer to the whole dollar.

6) Hippity Hoppity Brew is a manufacturer of Small, Medium and Large size malting equipment for use in craft breweries across the United States and Canada. They are implementing an activity based cost (ABC) system and have compiled the following indirect cost information.

During the period, the Medium sized equipment line at Hippity Hoppity Brew used 650 machine hours, used 6200 square feet of floor space, received 63 orders, experienced 13 engineering changes and had 8 warranty claims. $121058 of direct labor and $72300 of direct material were charged towards the Medium sized equipment line during the year.

Under the ABC system, how much indirect cost was charged to the Medium line during the year? round your answer to the whole dollar.

7) Hippity Hoppity Brew is a manufacturer of Small, Medium and Large size malting equipment for use in craft breweries across the United States and Canada. They are implementing an activity based cost (ABC) system and have compiled the following indirect cost information.

During the period, the Medium sized equipment line at Hippity Hoppity Brew used 650 machine hours, used 6200 square feet of floor space, received 63 orders, experienced 13 engineering changes and had 8 warranty claims. $124560 of direct labor and $65776 of direct material were charged towards the Medium sized equipment line during the year.

Under the ABC system, how much total cost was charged to the Medium line during the year? round your answer to the whole dollar.

8) Sammy Skillet is hoping to make $3.51 on every gourmet breakfast bowl he sells at his recently opened restaurant. If his desired selling price is $7.73 per breakfast bowl, under the target pricing model, what are Sammy Skillet's target costs per breakfast bowl? Calculate your answer to two decimal places.

PLEASE SHOW ALL WORK IN EXCEL BY USING CONTROL~

The following information applies to Tammy Taxpayer, employed by Time Travellers Ltd. (a Canadian Controlled Private Corporation).

Gross salary $110,000

Bonus. 50,000

Bonus based on Tammy's hard work negotiating contracts on behalf of the company (of which $15,000 was received on December 25, 2019 and the remainder will be received on January 15, 2020)                    

During 2019, Time Travellers withheld the following amounts from her gross salary:

Registered Pension Plan. $6,000

Charitable Donations - United Way. 2,000

Federal and Provincial Income Taxes. 28,750

• Tammy's employer made a $6,000 matching contribution to her registered pension plan.

• Travelling expenses for a 3 week trip for Tammy were reimbursed by Time Traveller. The cost of the entire trip was $3,000. Tammy spend one week attending a business conference and the other two weeks she stayed on as a vacation

• Time Traveller provided Tammy with a Mercedes Benz, which she used for 10 months of the year for work and pleasure. The following pertains to her automobile usage:

Monthly lease payment. $800

Kilometres driven for employment purposes 29,000 kms

Total kilometres driven during the year 32,000 kms

Operating costs paid by the employer $4,300

• Tammy was required to pay professional association dues of $1,500 for the year.

• Tammy incurred the following expenses while on company business trips throughout the year:

Hotel accommodations $3,500

Airline fare 6,400

Meals 2,300

All of these expenses were charged to Tammy's personal credit card and reimbursed by the employer.

• Tammy was awarded a Shirley Elford glass sculpture, valued at $900, for exceeding her sales targets by 20%.

• Tammy was given one of the limited underground parking spots in her building. The cost of the parking spot is $1,500 and is paid by Time Travellers Ltd.

• Tammy exercised her stock options in 2019. She acquired 2,000 shares on August 1, 2019 for $15 per share when the shares were trading for $22 per share. The options were granted in 2018, when the shares were trading for $14 per share. On November 1, 2019, Tammy sold her shares for $25 per share.

• Time Travellers paid $300 for Tammy's income tax preparation.

REQUIRED:    

Calculate the amount that would be included in calculation of Tammy Taxpayer's Net Employment Income for taxation purposes for the 2019 taxation year. PLEASE SHOW EACH ITEM THAT MAKES UP NET EMPLOYMENT INCOME.

The following information applies to Tammy Taxpayer, employed by Time Travellers Ltd. (a Canadian Controlled Private Corporation).

Bonus based on Tammy’s hard work negotiating contracts on behalf of the company (of which $15,000 was received on December 25, 2019 and the remainder will be received on January 15, 2020)                    

During 2019, Time Travellers withheld the following amounts from her gross salary:

• Tammy’s employer made a $6,000 matching contribution to her registered pension plan.

• Travelling expenses for a 3 week trip for Tammy were reimbursed by Time Traveller. The cost of the entire trip was $3,000. Tammy spend one week attending a business conference and the other two weeks she stayed on as a vacation

• Time Traveller provided Tammy with a Mercedes Benz, which she used for 10 months of the year for work and pleasure. The following pertains to her automobile usage:

• Tammy was required to pay professional association dues of $1,500 for the year.

• Tammy incurred the following expenses while on company business trips throughout the year:

All of these expenses were charged to Tammy’s personal credit card and reimbursed by the employer.

• Tammy was awarded a Shirley Elford glass sculpture, valued at $900, for exceeding her sales targets by 20%.

• Tammy was given one of the limited underground parking spots in her building. The cost of the parking spot is $1,500 and is paid by Time Travellers Ltd.

• Tammy exercised her stock options in 2019. She acquired 2,000 shares on August 1, 2019 for $15 per share when the shares were trading for $22 per share. The options were granted in 2018, when the shares were trading for $14 per share. On November 1, 2019, Tammy sold her shares for $25 per share.

• Time Travellers paid $300 for Tammy’s income tax preparation.

REQUIRED:

Calculate the amount that would be included in calculation of Tammy Taxpayer’s Net Employment Income for taxation purposes for the 2019 taxation year. PLEASE SHOW EACH ITEM THAT MAKES UP NET EMPLOYMENT INCOME.

The following information applies to Tammy Taxpayer, employed by Time Travellers Ltd. (a Canadian Controlled Private Corporation).

Bonus based on Tammy’s hard work negotiating contracts on behalf of the company (of which $15,000 was received on December 25, 2019 and the remainder will be received on January 15, 2020)                    

During 2019, Time Travellers withheld the following amounts from her gross salary:

• Tammy’s employer made a $6,000 matching contribution to her registered pension plan.

• Travelling expenses for a 3 week trip for Tammy were reimbursed by Time Traveller. The cost of the entire trip was $3,000. Tammy spend one week attending a business conference and the other two weeks she stayed on as a vacation

• Time Traveller provided Tammy with a Mercedes Benz, which she used for 10 months of the year for work and pleasure. The following pertains to her automobile usage:

• Tammy was required to pay professional association dues of $1,500 for the year.

• Tammy incurred the following expenses while on company business trips throughout the year:

All of these expenses were charged to Tammy’s personal credit card and reimbursed by the employer.

• Tammy was awarded a Shirley Elford glass sculpture, valued at $900, for exceeding her sales targets by 20%.

• Tammy was given one of the limited underground parking spots in her building. The cost of the parking spot is $1,500 and is paid by Time Travellers Ltd.

• Tammy exercised her stock options in 2019. She acquired 2,000 shares on August 1, 2019 for $15 per share when the shares were trading for $22 per share. The options were granted in 2018, when the shares were trading for $14 per share. On November 1, 2019, Tammy sold her shares for $25 per share.

• Time Travellers paid $300 for Tammy’s income tax preparation.

REQUIRED:

Calculate the amount that would be included in calculation of Tammy Taxpayer’s Net Employment Income for taxation purposes for the 2019 taxation year. PLEASE SHOW EACH ITEM THAT MAKES UP NET EMPLOYMENT INCOME.

The following information applies to Tammy Taxpayer, employed by Time Travellers Ltd. (a Canadian Controlled Private Corporation). Gross salary $110,000 Bonus 50,000 Bonus based on Tammy’s hard work negotiating contracts on behalf of the company (of which $15,000 was received on December 25, 2019 and the remainder will be received on January 15, 2020) During 2019, Time Travellers withheld the following amounts from her gross salary: Registered Pension Plan $6,000 Charitable Donations – United Way 2,000 Federal and Provincial Income Taxes 28,750 Tammy’s employer made a $6,000 matching contribution to her registered pension plan. Travelling expenses for a 3 week trip for Tammy were reimbursed by Time Traveller. The cost of the entire trip was $3,000. Tammy spend one week attending a business conference and the other two weeks she stayed on as a vacation Time Traveller provided Tammy with a Mercedes Benz, which she used for 10 months of the year for work and pleasure. The following pertains to her automobile usage: Monthly lease payment $800 Kilometres driven for employment purposes 29,000 kms Total kilometres driven during the year 32,000 kms Operating costs paid by the employer $4,300 Tammy was required to pay professional association dues of $1,500 for the year. Tammy incurred the following expenses while on company business trips throughout the year: Hotel accommodations $3,500 Airline fare 6,400 Meals 2,300 All of these expenses were charged to Tammy’s personal credit card and reimbursed by the employer. Tammy was awarded a Shirley Elford glass sculpture, valued at $900, for exceeding her sales targets by 20%. Tammy was given one of the limited underground parking spots in her building. The cost of the parking spot is $1,500 and is paid by Time Travellers Ltd. Tammy exercised her stock options in 2019. She acquired 2,000 shares on August 1, 2019 for $15 per share when the shares were trading for $22 per share. The options were granted in 2018, when the shares were trading for $14 per share. On November 1, 2019, Tammy sold her shares for $25 per share. Time Travellers paid $300 for Tammy’s income tax preparation. REQUIRED: Calculate the amount that would be included in calculation of Tammy Taxpayer’s Net Employment Income for taxation purposes for the 2019 taxation year. PLEASE SHOW EACH ITEM THAT MAKES UP NET EMPLOYMENT INCOME

How civil-law disputes between the parties from different nation-states can be resolved through national court systems or arbitration.

Would the accident rate be higher or better if states did not require drivers to carry liability insurance? please respond with a minimum of 200 words

Is Texas likely to be hit the same, harder, or lighter than other states in regards to the recent economic problems in the country? Support your answer.