SolveSuppose Fox has reference-dependent preferences over money, stickers, and airplanes. Lethis consumption in money, stickers, and airplanes bec1,c2, andc3, respectively, and let hisreference points in money, stickers, and airplanes ber1,r2, andr3, respectively. Then, Fox’sutility is given byv(c1-r1) +v(4c2-4r2) +v(4c3-4r3),wherev(x) =xforx≥0, andv(x) = 2xforx <0. Normalize Fox’s initial amount of moneyto zero, and suppose he starts off with zero stickers and zero airplanes.1. What will be Fox’s utility from losing two stickers, gaining one airplane, and gaining$6?2. Fox arrives at the experiment, and it turns out that he receives an $8 show-up bonus, which he doesnotincorporate into his reference point for money. Suppose Fox is givena sticker (and he does incorporate this into his reference point). Calculate his sellingprice by (i) writing down his reference point; and (ii) solving for the pricepS

Allen's office department manufactures computer desks in its​ moosejaw, saskatchewan, plant. the company uses activity based costing to allocate all manufacturing conversion costs​ (direct labour and manufacturing​ overhead). its activities and related data​ follow: ​(click the icon to view the activity areas and related​ data.) requirements 1. compute the​ per-unit manufacturing product cost of standard desks and unpainted desks. 2. premanufacturing​ activities, such as product​ design, were assigned to the standard desks at $ 5 each and to the unpainted desks at $ 2 each. similar analyses were conducted of postmanufacturing​ activities, such as​ distribution, marketing, and customer service. the postmanufacturing costs were $ 31 per standard and $ 26 per unpainted desk. compute the full product costs per desk. 3. which product costs are reported in the external financial​ statements? which costs are used for management decision​ making? explain the difference. 4. what price should allen's managers set for standard desks to earn a $ 52 profit per​ desk?