Suppose there are only two people, simon and charity, who must split a fixed income of $100. for simon, the marginal utility of income is 400 2ssmui  whereas for charity the marginal utility of income is 400 6ccmui  where si and ci are the amounts of income for simon and charity, respectively. a. [5 points] what is the optimal distribution of income if the social welfare function is additive? b. [5 points] what is the optimal distribution if society values only the utility of charity? what if the reverse is true? comment on your answers. c. [5 points] finally, comment on how your answers change if the marginal utility of income for both simon and charity is constant: 400scmu mu.

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.

Last year ann arbor corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 37.5%. the new cfo believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. assets, sales, and the debt ratio would not be affected. by how much would the cost reduction improve the roe? a. 11.51%b. 12.11%c. 12.75%d. 13.42%e. 14.09%