Suppose that as a consumer you have $34 per month to spend on munchies—either pizzas, which cost $6 each, or Twinkies, which cost $4 each. Suppose further that your preferences are given by the following total utility table. Copy the tables below to submit and solve for the missing marginal utility information in each. Remember that they must show diminishing marginal utility as more of each product is consumed. Graph the budget constraint with Pizzas on the horizontal axis and Twinkies on the vertical axis. What are the intercepts? Can you express the budget constraint as an algebraic equation for a line? # of Pizzas 1 2 3 4 5 6 7 Marginal Utility Total Utility 60 108 138 156 162 166 166 # of Twinkies 1 2 3 4 5 6 7 Marginal Utility Total Utility 44 76 100 120 136 148 152 Should you purchase a Twinkie first or a Pizza first to get the “biggest bang for the buck”? How can you tell? What should you purchase second, third, etc. until you exhaust your budget? Make sure that your answer satisfies the utility maximizing rule and mathematical proof. Confirm that the combination of Twinkies and Pizzas you end up with will maximize your total utility by computing the total utility from other points on the budget line and comparing them to what you chose.

1. Modify the HighArray class to implement the method specified below, which reads integer data from a file to fill the array. The first integer read from the file should indicate the number of integers contained in the file which can be read into the array.

/**
* Read integers into array from named file. First element in
* file is a count of number of integers contained in the file.
*
* @param fileName   name of file containing integer data
*/
void readIntFile(String fileName)

Note: Use the void insert(int value) method defined in the class to add each integer to the array as it is loaded from the file.

Here is a sample code to read data from file

import java.io.File;

import java.io.FileNotFoundException;

import java.util.Scanner;

public class FileReaderSample {

    public static void main(String[] args) throws FileNotFoundException {

        Scanner in = new Scanner(System.in);

        System.out.println("Please enter file name");

      String s = in.nextLine();

        Scanner input = new Scanner(new File(s));

        int[] arr = new int[100];

        int i = 0;

        while (input.hasNextInt()) {

            int next = input.nextInt();

            arr[i] = next;

            i++;

        }// end while

        int nElems = i;

// Print the array contents

       System.out.println("Array Contents");

        for (i = 0; i < nElems; i++) {

            System.out.println(i + "\t" + arr[i]);

        }// end for

    }// end main

Provide code and assertion statements for the pre/post-conditions. (To execute the assertion code, the java.exe requires the option -ea for the VM).

// ***  MyArrayList is limited to 100 elements.  ***
public class MyArrayList<E> extends ArrayList<E> {

    public MyArrayList() {
        // assert postcondition
    }

    @Override
    public int size() {
        // assert postcondition
        // code
    }

    // Insert e as a new first element to mal
    public void insertFirst(E e) {
        // assert precondition
        // code
        // assert postcondition
    }

    // Insert e as a new last element
    public void insertLast(E e) {
        // assert precondition
        // code
        // assert postcondition
    }

    // Delete my first element
    public void deleteFirst() {
        // assert precondition
        // code
        // assert postcondition
    }

    // Delete my last element
    public void deleteLast() {
        // assert precondition
        // code
        // assert postcondition
    }

    public void show() {
        for (E e : this) {
            System.out.println(e);
        }
    }
}

public class Student {
     // code
}

public class MyProg {
    public static void main(String[] args) {
        MyArrayList<Student> mal = new MyArrayList<>();
        mal.insertFirst(new Student(1, "John"));
        mal.insertFirst(new Student(2, "Mary"));
        mal.insertLast(new Student(3, "Mike"));
        mal.show();
        mal.deleteLast();
        mal.show();       
        mal.deleteFirst();
        mal.show();

    }
  }

// ------------------- EXPECTED OUTPUT --------------------- //

The following is the execution output if all assertions are valid and passed:

2, Mary

1, John

3, Mike

2, Mary

1, John

1, John

Currently a company that designs Web sites has five customers in its backlog. The time since the order​ arrived, processing​ time, and promised due dates are given in the following table. The customers are ready to be scheduled​ today, which is the start of day

190.

a. Develop separate schedules by using the FCFS and EDD rules. Compare the schedules on the basis of average flow time and average days past due.

Using the FCFS​ (first come, first​ served) decision rule for sequencing the​ customers, the order​ is:

Using the EDD​ (earliest due​ date) decision rule for sequencing the​ customers, the order is​ (to resolve a​ tie, use the order in which the jobs were​ received):

The average flow time and average days past due for each option​ are: ​(Enter your responses rounded to one decimal​ place.)

The Perkins Cove Yacht Company Case

The Perkins Cove Yacht Company Case Perkins Cove Yacht Company produces three models of yachts. All are 44 feet long. One is a standard Fiberglass model with nylon sails and a fixed keel made of lead and fiberglass named the Goose Rocks. It comes with a standard depth finder, compass and 20 horsepower diesel auxiliary motor. It sells for $120,000. The Kennebunkport model has upgrades with radar, GPS nautical charts, enhanced batteries, and Teflon coated carbon fiber sails. The engine produces 100 horsepower and can run a cabin heater. It can completely recharge the battery in less than an hour. The Kennebunkport sells for $200,000. The Ogunquit model is a custom-made with a deck made from teak and a cabin constructed from special woods. The sails are made from the traditional flax based canvass. The hull is from specially cut oak from local forests. It has the look of a vessel constructed in 1850 by a quality Maine shipyard with 2016 comforts and safety. The Ogunquit sells for $800,000. Workers who build the Ogunquit are specialty craftsmen. They earn twice the hourly rate of those working on the two standard models. Note: Labor rate is fully loaded for benefits. Most of Perkins Cove Yacht’s sales come from the Goose Rocks and the Kennebunkport, but sales of the Ogunquit model have been growing. Below is the company's sales, production, and cost information for last year:

Manufacturing overhead* is made up as follows:

*these manufacturing overhead costs are fixed in nature: they do not vary with the volume of manufacturing.

The company allocates overhead costs using the traditional method. Its activity base is unit volume. The predetermined overhead rate, based on 170 total yachts, is $27,000 per yacht ($4,590,000 ÷ 170 yachts). Richard Perkins, president of Perkins Cove yacht, is concerned that the traditional cost-allocation system the company is using may not be generating accurate information and that the selling price of the custom Ogunquit may not be covering its true cost.

Questions:

A. The cost-allocation system Perkins Cove has been using allocates over 88% of overhead costs to the Goose Rocks and the Kennebunk because 88% of yachts produced were these two models. How much overhead was allocated, in total, to each of the three models last year? Discuss why this might not be an accurate way to assign overhead costs to products.

B. Perkins Cove’s production manager proposes allocating overhead by direct labor hours instead since the different models require different amounts of labor. How much overhead would be allocated to each yacht (per unit and in total) under this method? Show all supporting calculations.

C. How would the use of more than one cost pool improve Perkins Cove Yacht's cost allocation?

D. Perkins Cove Yacht's controller developed the following data for use in activity-based costing:

Use activity-based costing to allocate the costs of overhead per unit and in total to each yacht. Show all supporting calculations. It is appropriate to use an excel document to do your computations in Excel.

E. Calculate the cost of one custom Ogunquit yacht using activity-based costing.

F. Why are the costs different between the traditional method and the activity-based method?

G. At the current selling price, is the company covering its true cost of production of the Ogunquit? Briefly discuss.

H. What should be the price that Perkins Cove Yacht Company charges for the Ogunquit? Assume that the Ogunquit should have the same profit margin as the Kennebunkport. Show all calculations.

I. What should Perkins Cove Yacht Co. do if the quantity of the Ogunquit yachts sold at the new price falls to 10 per year?

J. What should Perkins Cove Yacht Co. do about the situation if the price of the Ogunquit cannot exceed $800,000?

K. At a selling price of $800,000 each, what is the breakeven unit volume for the Ogunquit?

L. What are the lessons learned from this case?

Required Reading

* What is cost behavior: http://www.accountingcoach.com/blog/what-is-cost-behavior

*Activity Based Costing and Indirect Manufacturing Costs .

Capital budgeting:http://www.teachmefinance.com/capitalbudgeting.html

Part-1
Government insists the society to stop consuming the cigarettes and to protect their health.
Smoking is injurious to health is a slogan used by all the countries throughout the world in which
creating awareness among this cigarettes smokers. Cigarette causes cancer and other diseases to
the human body. Government wants to reduce the cigarette consumption, hence imposing higher
amount of tax by which increasing the price to cut the cigarette smoking. There are two methods:
attempted to achieve this objective.

First Method:
Creating awareness through advertisements in theaters, newspapers, television and other
channels, printing health warnings on cigarette pockets, and posters fixed in shops are the
various measures taken by the government to reduce the demand of the cigarettes. Based on the
government initiatives, personal healthcare issues and the taste and preferences of the smokers
are not favor for the product when the prices are constant and leads to shift the demand curve.

Government has been trying to increase the price of cigarettes by which imposing maximum tax
on the product. Higher price discourages smokers to reduce the numbers of cigarettes smoking in
a day. The demand of the product meets changes in terms of production and consumption, thus
the demand curve is to be changed.   

They have originated that a 10 percent rise in the price causes 4 percent decrease in the quantity
demanded. Youths are found to be particularly sensitive to the price of cigarettes: A 10 percent
rise in the price causes a 12 percent drop in teenage smoking. Because of increased awareness of
people towards effect of smoking there is a growth of alternative industry as a substitute to
cigarettes. i.e. Nicotine Gum, Herbal Cigarettes, Electronic Cigarettes and Acupuncture etc.

Questions:
8. There are two set of consumers on whom the effect of pricing is different. Illustrate
the difference in the two set of consumers response to price change in term of
elasticity of demand.

9-With the increase of alternatives in the market for the Cigarette will elasticity of the
product will be effected? Explain how the elasticity of the product has changed with
entry of new alternatives in the market. What was the elasticity in the past and how
it has changed in the present? (2.5 +2.5 = 5 Marks

10. Explain Cross elasticity of demand in relation to cigarettes and its substitutes in the
market. Explain the answer in relation to the case mentioned?

A firm uses corn as an input into their production of ethanol.  You require 1 bushel of corn to produce one gallon of ethanol.  Each gallon of ethanol sells for $4.  Fixed costs are $12, and you can produce and sell 10 gallons of ethanol this year.  Corporate taxes on profits follow a progressive pattern, and are as follows:

For illustrative purposes, assume that all cash flows occur at the end of the year (i.e. assume that all corn is purchased and ethanal produced and sold at the end of the year). This way, there is no adjustment for time value of money required to calculate profit.

1. If all of the above assumptions hold, what is the price of corn for which profits are maximized?  Calculate the maximum profit you can earn.

Suppose that the price of corn will follow the following distribution one year from now:

The following one-year call options are available on the price of corn.  The risk free rate is 5% compounded continuously:

The one year forward price of corn is 2.79 per bushel.

2. Given the information above, list at least 7of the possible hedging strategies that you can use to hedge against adverse fluctuations the price of corn (i.e. possible combinations of derivatives above that apply).  No calculations are required for this question, you’re answer should be a list. HINT: there are 10 in total.
3. Calculate the expected unhedged after-tax profit on the production and sale of corn.

4. Calculate the expected after-tax profit for all possible hedging strategies that you listed in part b. State which hedging strategy results in the highest expected profit.
5. Explain why reducing earnings volatility in a progressive tax environment can improve expected after-tax profit

A firm uses corn as an input into their production of ethanol.  You require 1 bushel of corn to produce one gallon of ethanol.  Each gallon of ethanol sells for $4.  Fixed costs are $12, and you can produce and sell 10 gallons of ethanol this year.  Corporate taxes on profits follow a progressive pattern, and are as follows:

For illustrative purposes, assume that all cash flows occur at the end of the year (i.e. assume that all corn is purchased and ethanal produced and sold at the end of the year).  This way, there is no adjustment for time value of money required to calculate profit.

1. If all of the above assumptions hold, what is the price of corn for which profits are maximized?  Calculate the maximum profit you can earn

Suppose that the price of corn will follow the following distribution one year from now:

The following one-year call options are available on the price of corn.  The risk free rate is 5% compounded continuously:

The one year forward price of corn is 2.79 per bushel.

2. Given the information above, list at least 7 of the possible hedging strategies that you can use to hedge against adverse fluctuations the price of corn (i.e. possible combinations of derivatives above that apply).  No calculations are required for this question, you’re answer should be a list. HINT: there are 10 in total.

3. Calculate the expected unhedged after-tax profit on the production and sale of corn.

4. Calculate the expected after-tax profit for all possible hedging strategies that you listed in part b. State which hedging strategy results in the highest expected profit.

5. Explain why reducing earnings volatility in a progressive tax environment can improve expected after-tax profit.