Harold Grey owns a small farm in the Salinas Valley that grows apricots. The apri­cots are dried on the premises and sold to a number of large supermarket chains. Based on past experience and committed contracts, he estimates that sales over the next five years in thousands of packages will be as follows: Year
Forecasted Demand (thousands of packages)
1
300
2
120
3
200
4
110
5
135
Assume that each worker stays on the job for at least one year, and that Grey currently has three workers on the payroll. He estimates that he will have 20,000 packages on hand at the end of the current year. Assume that, on the average, each worker is paid $25,000 per year and is responsible for producing 30,000 packages. Inventory costs have been estimated to be 4 cents per package per year, and shortages are not allowed.
Based on the effort of interviewing and training new workers, Farmer Grey es­timates that it costs $500 for each worker hired. Severance pay amounts to $1,000 per worker.
a. Assuming that shortages are not allowed, determine the minimum constant workforce that he will need over the next five years.
b. Evaluate the cost of the plan found in part (a).

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.

Markets and competition in a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers . true or false: the market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets. true false