Answer:
The number of CDs = 111.36
The number of movie videos = 242.72
N/B: I choose not to round up the answers.
Explanation:
The method used is the Lagrangian method. Basically, the optimization problem we are trying to solve is the utility function 
subject to the constraint
.
So the optimization problem(Lagrangian) is
,
where 
is a constant called the Lagrange multiplier.
To find the optimal consumption, we need to maximize the Lagrangian with respect to the variables 
. This we do by differentiating 
with respect to each variable and then equate to 0.
Equate (1) and (2), to get 
and substitute into (3) to get 
. Substituting into 
to get the corresponding value of 
.
Answer:
$500 gain and $185 tax
Explanation:
Sale of share = No. of NQOs × No. of shares × Selling price per share
= 10 × 10 × $20
= $2,000
Basis = No. of NQOs × No. of shares × share price @$15
= 10 × 10 × $15
= $1,500
Gain realised = Sale of share - Basis
= $2,000 - $1,500
= $500
The tax is calculated as follows:
= Gain realised × marginal tax rate
= $500 × 37%
= $185
Answer:
C
Explanation:
because I feel that many individuals would select the most basic option, such as A or B.
Answer: d. it is necessary to relate variable cost data to the activity index chosen
Explanation:
The activity index shows how various activities have an impact on the cost of production.
When developing a flexible budget within a relevant range of activity, ome must relate variable cost data to the activity index chosen to ensure that it is indeed variable.
Answer:
to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars
Explanation:
spot x (1 + (US rate - Australia rate) x time)
0.96 x (1+(0.03-0.05)x1 year) =
0.96 x 0.98 = 0.9408 forward exchange rate
$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars
