Martin enterprises needs someone to supply it with 117,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and youâve decided to bid on the contract. it will cost you $780,000 to install the equipment necessary to start production; youâll depreciate this cost straight-line to zero over the projectâs life. you estimate that, in five years, this equipment can be salvaged for $128,000. your fixed production costs will be $405,000 per year, and your variable production costs should be $10.00 per carton. you also need an initial investment in net working capital of $67,000. if your tax rate is 23 percent and you require a return of 11 percent on your investment, what bid price should you submit?

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.