An airline is deciding how to structure this year’s passenger booking process. The airline uses both sales agents and an online scheduling platform that must be continuously monitored, updated and debugged. Currently, the airline pays computer programmers $20 per hour and sales agents $10 per hour. The bookings per hour is represented by the following Cobb-Douglas function: f(x)=x1^2/3 x2^1/3

where f is the bookings per day, x1 is the number of computer programmer hours per day and x2 is the number of sales agent hours per day.

Required:
a. Show that the elasticity of the quantity produced with respect to computer programmer hours is 2/3 Show that the elasticity with respect to sales agent hours is 1/3
b. Find the marginal product of computer programmer hours and sales agent hours.
c. The airline would like on average 1,000 bookings per day. Find the number of computer programmer hours per day (x1) and the number of sales agent hours per day (x2)
d. A sudden increase in the need for computer programmers by companies in other industries has significantly increased the wages of computer programmers. How do the number of hours per day for computer programmers and sales agents change when computer programmers are instead paid $160 per hour (W1 = $160, W2= $10)?
e. Have the sales agents benefited from the increase in programmers' hourly wage? Have the computer programmers benefited?

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)