Company SuperRich is considering the possibility of building an additional factory that would produce a new product. The company has two options. The first is a small facility that it could build at a cost of $5 million. If demand for new products is low, the company expects to receive $7 million in revenue with the small facility; if demand is high, it expects $12 million in revenues using the small facility. The second option is to build a large factory at a cost of $10 million. If demand is low, the company would expect $9 million in revenues with the large plant; if demand is high, the revenue is expected to be $20 million. In either case, the chance of low demand is 0.6 and the chance of high demand is 0.4. Not constructing a new facility will lead to $5 million revenue regardless of the demand condition.

a. Construct a decision tree and conduct the analysis to help company SuperRich to make the best decision.

b. Suppose that there is an oracle telling Company SuperRich whether the demand is high or low before making the capacity decision. Construct a decision tree and conduct the analysis to determine the value of the oracle.

c. Suppose that Company SuperRich has an option of conducting a market research before making the capacity decision. We assume that the market research is not affecting the actual demand realization. If the research outcome is good, then the chance of high demand becomes 0.8 (and low demand is 0.2). Company SuperRich estimates that the probability of getting a good research outcome is 0.45. Construct a decision tree and conduct the analysis to determine the value of this market research.

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?