Quilcene oysteria farms and sells oysters in the pacific northwest. the company harvested and sold 7,600 pounds of oysters in august. the company’s flexible budget for august appears below: quilcene oysteria flexible budget for the month ended august 31 actual pounds (q) 7,600 revenue ($4.10q) $ 31,160 expenses: packing supplies ($0.40q) 3,040 oyster bed maintenance ($3,000) 3,000 wages and salaries ($2,400 $0.45q) 5,820 shipping ($0.70q) 5,320 utilities ($1,250) 1,250 other ($410 $0.01q) 486 total expense 18,916 net operating income $ 12,244 the actual results for august appear below: quilcene oysteria income statement for the month ended august 31 actual pounds 7,600 revenue $ 27,400 expenses: packing supplies 3,210 oyster bed maintenance 2,860 wages and salaries 6,230 shipping 5,050 utilities 1,060 other 1,106 total expense 19,516 net operating income $ 7,884 required: calculate the company’s revenue and spending variances for august

The next dividend payment by savitz, inc., will be $2.08 per share. the dividends are anticipated to maintain a growth rate of 6 percent forever. if the stock currently sells for $42 per share, what is the required return?

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.