In a fairly recent cost analysis study, it was found that Medicaid policy barriers impacted the rates of unintended pregnancies and abortions, which resulted in a public cost of ________ dollars.

Question 2 (1 point)

Chris Jennings, of Jennings Policy Strategies, has worked on health policy under which two presidential administrations?

Question 3 (1 point)

True or false? If the Affordable Care Act is repealed, a financially viable replacement option will be difficult to construct.

True

False

Question 4 (1 point)

True or false? There is a linear relationship between rulemaking and the operating activities involved in implementing and modifying a policy.

True

False

Question 5 (1 point)

________ is the process through which executive branch entities create instructions that guide the implementation process of new policies.

Question 6 (1 point)

The Pharmaceutical Research and Manufacturers of America (PhRMA) believes that policy modification is in order for the expanding ________ program due to market distortions.

Question 7 (1 point)

A strong example of incrementalism in health policy can be seen in which policy/program?

Question 8 (1 point)

One example of an approach to policy analysis and modification is to base assessments on ________ evaluations.

Question 9 (1 point)

Developing a new medication is a lengthy and complex process, taking an average of ________ years.

Question 10 (1 point)

When policymakers review a policy in action, they must evaluate it against the original ________.

The Cost of Producing Wine at Only a Small Fraction of the Price

Most consumer goods are not sold by the manufacturer. Instead, they are produced by the manufacturer, who sells to a wholesaler, who in turn sells to a retailer, who sells to the public. Such is the case with most wine.

There has been an outcry in recent years over increases wine in prices. Although prices have risen sharply, the multilevel market structure and the markup that occurs at the wholesale and retail levels have a much larger role in the price increases than the production of the wine itself. Total production costs for a typical $24 bottle of wine are just $4.92, or about 20.4% of the final price, whereas wholesale and retail markups together make up 40% of the final price. Not surprisingly, raw materials (grapes) are the single biggest cost. The cost of the grapes may be as much as 60% of total production costs but varies greatly from lower-quality inexpensive wines to the highest quality wines. The second-highest cost for many vintners is the barrels used to ferment the wine. French oak barrels cost as much as $700 apiece and last only a few years. The other major production cost, other than the actual physical plant where the winemaking occurs, is time. Quality wines spend 2–2 ½ years aging in barrels and then an additional 8 months in bottles before being ready for sale.

1. How much substitutability do you suppose exists between inputs in winemaking? How might this factor affect efforts to cut costs?
2. If a firm were to find a new technology that cut the required aging time in half, how would it affect the demand for other inputs?

1. Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

   The following information is available for Shanika Company for 20Y6:

   Inventories	January 1		December 31
   Materials	$373,870		$471,080
   Work in process	672,970		640,670
   Finished goods	646,800		654,800

   Advertising expense	$319,860
   Depreciation expense-office equipment	45,220
   Depreciation expense-factory equipment	60,770
   Direct labor	725,460
   Heat, light, and power-factory	24,030
   Indirect labor	84,790
   Materials purchased	711,330
   Office salaries expense	248,260
   Property taxes-factory	19,790
   Property taxes-headquarters building	40,980
   Rent expense-factory	33,450
   Sales	3,330,540
   Sales salaries expense	408,900
   Supplies-factory	16,490
   Miscellaneous costs-factory	10,360

   Required:

   1. Prepare the 20Y6 statement of cost of goods manufactured.

   Shanika Company
   Statement of Cost of Goods Manufactured
   For the Year Ended December 31, 20Y6
   Depreciation expense-factory equipment Indirect labor Supplies Work in process inventory, January 1, 20Y6			$
   Direct materials:
   Materials inventory, January 1, 20Y6 Rent expense-factory Supplies-factory Work in process inventory, December 31, 20Y6	$
   Indirect labor Property taxes-headquarters building Purchases Work in process inventory, December 31, 20Y6
   Cost of materials available for use Supplies-factory Work in process inventory, January 1, 20Y6 Work in process inventory, December 31, 20Y6	$
   Indirect labor Materials inventory, December 31, 20Y6 Miscellaneous cost-factory Work in process inventory, December 31, 20Y6
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold		$
   Depreciation expense-factory equipment Direct labor Indirect labor Supplies-factory
   Factory overhead:
   Indirect labor Materials inventory, January 1, 20Y6 Purchases Sales	$
   Depreciation expense-factory equipment Depreciation expense-office equipment Direct labor Purchases
   Direct labor Heat, light, and power-factory Materials inventory, January 1, 20Y6 Work in process inventory, December 31, 20Y6
   Cost of materials available for use Direct labor Property taxes-factory Property taxes-headquarters building
   Purchases Rent expense-factory Rent expense-headquarters building Sales salaries expense
   Cost of goods sold Direct labor Purchases Supplies-factory
   Advertising expense Cost of materials available for use Direct materials Miscellaneous costs-factory
   Total factory overhead
   Total manufacturing costs incurred in 20Y6
   Total manufacturing costs			$
   Cost of materials available for use Direct materials Materials inventory, December 31, 20Y6 Work in process inventory, December 31, 20Y6
   Cost of goods manufactured			$

   Feedback

   2. Prepare the 20Y6 income statement.

   Shanika Company
   Income Statement
   For the Year Ended December 31, 20Y6
   Cost of goods sold Gross profit Indirect labor Sales			$
   Cost of good sold:
   Advertising expense Finished goods inventory, January 1, 20Y6 Finished goods inventory, December 31, 20Y6 Sales		$
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods sold Cost of materials available for use		$
   Depreciation expense-office equipment Finished goods inventory, December 31, 20Y6 Net loss Plus finished goods inventory, December 1, 20Y6
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods sold Cost of materials available for use
   Cost of goods sold Gross profit Property taxes-headquarters building Sales			$
   Operating expenses:
   Administrative expenses:
   Cost of goods sold Office salaries expense Sales Sales salaries expense	$
   Advertising expense Depreciation expense-factory equipment Depreciation expense-office equipment Gross profit
   Cost of goods sold Property taxes-factory Property taxes-headquarters building Sales		$
   Selling expenses:
   Advertising expense Cost of goods sold Office salaries expense Sales	$
   Direct labor Office salaries expense Sales Sales salaries expense
   Total operating expenses
   Net income Net loss			$

Consider the following cost curve for a firm in a competitive industry where the market price equals $120

C=1/3q^2+20q+500

What is the​ firm's marginal cost​ (MC)?

MC​ =

At what level of output does the firm maximize profits​ (minimize losses)?

Profit is maximized at:

units of output.  ​(Round your answer to two decimal​ places.)

What is the​ firm's profit maximizing​ price?

What is the​ firm's profit?  

In the​ short-run, this firm should

produce/shutdown?

.

    Trinkets and Things is developing a cost formula for its packing activity. Discussion with workers in the packing department has revealed that packing costs may be associated with the number of customer orders, the order weight in pounds, and the relative fragility of the items (more fragile items must be specially wrapped). Data for the past 20 months have been gathered:

1)         Assume Number of Orders is the cost driver, estimate the cost equation using:

            a.         High-Low Method:                                                                                                                                                                                   

            b.         Prepare a scattergraph, identify outliers (if any), TRIM THE DATA, and re-estimate the cost                                        equation using the High/Low Method:   

            c.         Use Simple Regression Analysis (TRIMMED DATA):            

                        i.          Document the goodness of fit (R-square):                                                                             

ii.   How well does the independent variable explain the variation in the dependent variable?

Circle one:    Excellent                  Very Good                               Good                     O.K.                 Poor

                        iii.         State the Independent variable by name                                                                                                                                                                   

iv. Can we rely on ALL the coefficient values? Why or Why Not?                       _________                             

2)   Assume Number of Fragile Items is the cost driver, estimate the cost equation using:

            a.         High-Low Method:                                                                                                                                                                                                      

            b.         Prepare a scattergraph, identify outliers (if any), TRIM THE DATA, and re-estimate the cost                                        equation using the High/Low Method:            _____________________________________

            c.         Use Simple Regression Analysis (TRIMMED DATA):                                                                                                                       

                        i.          Document the goodness of fit (R-square):                                                                             

ii.   How well does the independent variable explain the variation in the dependent variable?

Circle one:    Excellent                  Very Good                               Good                     O.K.                 Poor

                        iii.         State the Independent variable by name                                                                                                                                                                   

iv. Can we rely on ALL the coefficient values? Why or Why Not?                       _________                             

3)   Estimate the cost equation using MULTIPLE REGRESSION ANALYSIS and write it below:

      NOTE: Use the trimmed data set.

            a.         Multiple Regression Analysis

                        i.          Document the goodness of fit (Adjusted R-square):                                                                          

ii.   How well does the independent variable explain the variation in the dependent variable?

Circle one:    Excellent                  Very Good                               Good                     O.K.                 Poor

                        iii.         State the Independent variables                                                                                                                                                                                                        

iv. Can we rely on ALL the coefficient values? Why or Why Not?                       _________                             

4)         Given the five cost functions estimated above (#1 through #5), compute the following:

a.   Assume management estimates that 26,000 orders, 57,000 lbs. of weight, and 900 fragile items will be incurred during the next month. Estimate total packing costs using each of the 5 cost functions?

      (High/Low - Orders):                                                                                      (High/Low-Fragile):                                                                

      (Simple - Orders):                                                                                                      (Simple Fragile):                                                                                 

                                                                                                                                                                  (Multiple Reg’n):                                                                                 

5)   Based on your analysis, which cost estimation equation would you suggest that CC employ to estimate its Packaging Costs? Why? Provide a SOLID RECOMMENDATION.

Dell is evaluating a project which has the initial cost of $10,000 and generates the following cash flow/

The firm's cost of capital is 10%. Calculate NPV, PI, IRR, MIRR, discounted payback, and payback period

Using a cost of capital of 13​%, calculate the net present value for the project shown in the following table and indicate whether it is​ acceptable, LOADING.... The net present value​ (NPV) of the project is ​$

Initial investment   -1,151,000
Year   Cash inflows
1   84,000
2   136,000
3   192,000
4   255,000
5   318,000
6   382,000
7   277,000
8   100,000
9   42,000
10   25,000

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Project C Time: 0 1 2 3 4 5 Cash flow –$2,900 $1,240 $1,050 $1,090 $680 $480 Discounted payback period years Should the project be accepted or rejected? Rejected Accepted

To please be done in excel: Based on a market survey (which cost $100 000), the probable demand for “Tab” in the first year has been estimated. New plant with a maximum annual capacity of 10 000 units can be purchased for $3.5 million. The plant has an estimated useful life for four years, at the end of which the residual value is expected to be $350 000. Variable production costs are estimated at $1 000 per unit, while additional fixed costs, based on a capacity of 10 000 units and before allowing for depreciation, are expected to amount to $250 per unit. These fixed costs will be avoidable if local manufacture does not take place. The “Tab” would sell for $1 700 each, some $500 less than the selling price of the cheap imported tablets currently sold by ABC. This would mean that the current sales of 7 000 units per annum of the cheap imported machines would cease. The contribution generated by sale of these imported machines amounts to $250 per unit. Existing fixed costs amount to $1,75 million per annum, and will still be incurred if local manufacture takes place. The new plant would be written off over 5 years on a straight-line basis for tax purposes. The corporate tax rate is 30% and ABC uses a discount rate of 18% for all projects of this type. There are no expected changes to the working capital of the business. Question: Assuming that all four years have the same net incremental cash flows as calculated, and taking into account any other relevant cash flows, show that the NPV, IRR and Payback Period of the project as a whole are: $274 805.27, 21.8% and 2.66 years respectively.