Will mexico stop producing tequila? because of record-low industry prices for the agave azul plant, from which tequila is distilled, farmers in jalisco and other mexican states are switching to more lucrative plants like corn (kyle arnold, "no mas tequila," the monitor, september 17, 2007). planting of agave rose substantially from 2000 through 2004, and then started to plummet as the price of inexpensive tequila fell. the number of agave planted went from 60 million in 2000, to 93 million in 2002, to 12.8 million in 2006, and the downward trend continued in 2007. it takes seven years for an agave plant to be ready for harvesting. the price of inexpensive tequila has dropped 35% to 40% in recent years, but the price of high-end tequilas, which have been growing in popularity, has remained stable. discuss the relative sizes of the short-run and long-run supply elasticities of tequila. what do you think the supply elasticity of high-quality tequila is? why? if the demand curve for inexpensive tequila has remained relatively unchanged, is the demand curve relatively elastic or inelastic at the equilibrium? why? compared to the long-run supply elasticity of tequila, the short-run supply elasticity is likely

Kevin comes across people from various cultures in his job.kevin should deal with people from other cultures with blank . he should communicate by actively

Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?