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- Luke is an engineering consultant who lives North Carolina and works around the world. In 2019 Luke traveled to Costa Rica for 2 weeks and provided consulting services to a Costa Rican developer. All of the work took place in Costa Rica. He was paid $14,000 USD by the developer. Luke claimed this income on his 2019 U.S. tax return. Which of the following is correct regarding how the final value of this service will appear in national income accounts? <choose all that are correct> Group of answer choices $14,000 will appear in US GDP. $14,000 will appear in US GNP. $14,000 will appear in Costa Rica's GDP. $14,000 will appear in Costa Rica's GNP.A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. e tc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. 1l1e maintenance cost for the first year is $150.000. Utilities arc expected to average about $200.000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be J00.000 people (or 100.000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge so that it can recover at least a 6% cost of borrowing on its investment? ll1c university expects the arena to be used for 40 years and 10 have no appreciable salvage value.Q4 A business manager determines that t months after production begins on a new product, the number of units produced will be P thousand,where P(t) =6?2 + 5? /(? + 1)2 production in the long run (i) A ruptured pipe in a North Sea oil rig produces a circular oil slick that is y meters thick at a distance x meters from the rupture.Turbulence makes it difficult to directly measure the thickness of the slick at the source (where x = 0),but for x > 0,it is found that y =0.5(x2 + 3x)/ x3 + x2 + 4x Required:a)Assuming the oil slick is continuously distributed,how thick would you expect it to be at the source?
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- Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factoryproduces office chairs. Management aims to increase production in the coming year to 800units per month. Therefore, management is exploring two production strategies for thecoming year. The first strategy is to continue operations with the existing machine, MachineA, and the second strategy is to rent a new machine, Machine B, to produce the office chairs.The monthly rental of Machine B is RM14,000. Machine B takes half an hour to produce oneoffice chair. However, it requires a more skilled labour force with an hourly rate of RM30 perhour.Comparatively, continuing to use Machine A means that costs will remain the same. MachineA is 5 years old and is operating below capacity. The hourly labour rate is RM20 and thematerials required for each unit is RM30. Each office chair is assembled within an hour. Eachunit of the finished office chair is sold for RM120.The fixed monthly running costs of thefactory is…firm decides to invest X units of capital in Project A and Yunits of labour in Project B. iv. The expected return for each unit of investment is $500 in Project A and $1500 in Project B. However in order to meet the expectations of the firm's ethical and environmental policy values of X and Y must satisfy the constraint x+y-5x-6y= 210. How many units of each type should firm buy in other to maximize total volume? What is the implication of a unit change in investment in capital and (or) Labour Economic Analysis?Q5) A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. Numerically they estimate: P = $35.00 - 0.02Q where P =selling price per unit Q = quantity sold per year On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. They estimate C = $4.00Q + $8000 where C = cost to produce and sell Q per year The firm's management wishes to produce and sell the product at the rate that will maximize profit, that is, where income minus cost will be a maximum. What quantity should the decision makers plan to produce and sell each year?
- A rough rule of thumb for the chemical industry is that OMR 1 of annual sales required OMR 2 of fixed capital investment. In a chemical processing plant where this rule applies, the total capital investment is OMR 3200000 and the working capital is 18% of the total capital investment. The annual net total product cost amounts to 1500000 OMR. If the income tax rates on gross earnings total 21%, determine the following: (a) Percent of total capital investment returned annually as gross earning. (b) Percent of total capital investment returned annually as net profit.Qt 80: The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of (a) mining operation by multinational companies in resource-rich but backward areas (b) curbing of the tax evasion by multinational companies (c) exploitation of genetic resources of a country by multinational companies (d) lack of consideration of environmental costs in the planning and implementation of developmental projectsTim lives in Vancouver and runs a business that sells pianos. In an average year, he receives $733,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $433,000; he also pays wages and utility bills totalling $257,000. He owns his show room; if he chooses to rent it out, he will receive $13,000 in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Tim does not operate this piano business, he can work as a paralegal, receive an annual salary of $23,000 with no additional monetary costs, and rent out his show room at the $13,000 per year rate. No other costs are incurred in running this piano business.