ECO 108 Lecture 6: One Class ECON 6

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peachwoodchuck721

3 Aug 2018

School

University of Rochester

Department

Economics

Course

ECO 108

Professor

landsburg

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Document Summary

The value for each employee can be calculated for each employee by determining = marginal value. If you"re walking down the street on a hot summer afternoon, you might be very happy to pass an ice cream stand, where you can get a cone for say, . If you"ve got enough of a craving for ice cream, you might even reflect that you"d have paid up to, say, for that cone if you"d had to. In that sense, you got a bargain. To you, at that moment, is what we call the marginal value of that ice cream cone. The word value is there to remind us that we"re talking about what you"d have been willing to pay for that cone if necessary, not what you actually paid for it. The word marginal is there to remind us that this number applies only to a single ice cream cone.

Related Questions

1. Joe Fixit has an appliance-repair business. He has more business than he can handle and wants to hire another repair person. Joe estimates that three appliances can be repaired each hour by a qualified person. Joe bills out labour at $45 per hour, but he stipulates that the minimum charge for appliance-repair estimates is $30 plus parts. What is the marginal revenue product of a qualified repair person? What is the maximum hourly wage that he would pay an employee?

2. Sara Lee just graduated from college with a degree in accounting. She had five job offers: Bean Counters CPA, $35,000; Assets R Us, $27,000; The Debit Store, $30,000; J & Jâ's CPAs, $33,000; and The Double Entry Shop, $40,000. What was her opportunity cost if she accepted the job with The Double Entry Shop?

3. Sam Club earned $50,000 and paid taxes of $10,000. Samantha Heart earned $60,000 and paid taxes of $12,000. If these taxes were paid to the same government agency, is the tax on income progressive, regressive, or proportional? How did you reach this conclusion?

4. Carol Jones wants her business to increase sales by 50 per cent over the next 5 years. To do this, she must hire three more people. She wants to determine how to evaluate these people, so she lists their job specifications and develops job descriptions. She also lists where these employees would work and what training they would require. What management functions is Carol performing, and how do they apply to this scenario?

5. Sam Jones, Mary Adams, and Larry Brown have been talking about starting their own business for several years. Sam is an electronic repairman, Mary is a partner in a large law firm, and Larry is an excellent salesperson. Sam and Larry will work in the business on an equal basis. It costs $100,000 to start this business. Sam has no money, Mary has $60,000, and Larry has $40,000. If they form a partnership, how would you recommend that they organize?

6. Joe Latte completed a business plan and determines that it will take $120,000 to open the coffee and gelato shop. He has $30,000 of his own money and will have to obtain $90,000 in loans or grants. How should Joe go about getting financing? What is the probability that he can obtain a grant to start a combination of coffee and Italian ice cream shop?

blackcoyote927

On Monday, May 26, Tina Brown walked into Innovative Patios to begin her new job as Payroll Manager. She was met by Julie Thornbury, President and major shareholder of the company. Julie got to the point: Good, you're here. I need a payroll plan by Friday. This place is a mess.

Yesterday I got a call from Human Resources & Skills Development Canada. He said we aren't filing ROEs. Do you know what they are?

We've got employees telling us that they get more tax deducted than their friends who earn the same amount. Jim, our production manager is barking that he should have a tax credit for his kid. We've been fined for sending in employee taxes late. I don't get it. I pay two people to run the administrative side of things and they mess things up.

I hear there are changes in the pipeline. I heard about the federal budget, but I don't know if we will benefit or not. Will it be just more paperwork? The bottom line is that I don't want any more government types coming around here threatening me. Tell me what we have to do.

Company History

Innovative Patio is a private corporation that installs patios stones made from recycled material. The company was started twenty years ago by Julie's parents Elena and Seamus. Elena and Seamus were immigrants to Canada and earned a living through a small landscaping business. They hired workers on contract and paid in cash for many years until they were audited by the tax department.

To avoid further problems, they incorporated the company five years ago, but their workers on the payroll, and hired Mary as a bookkeeper to fill out all the government forms.

Payroll Department

Mary quickly became Innovative Patios office manager, human resources manager, financial administrator, and payroll manager. The workload was overwhelming and she convinced Julie to hire Liza to help her. Liza suggested they use Quicken to keep track of all accounts including payroll.

Mary and Liza fill out all cheques by hand for the ten employees and fill out all the government forms by hand. The company's remittances are based on a checklist Mary developed in 2009 (See Exhibit), Mary is unhappy because she works very hard, but everyone complains about things being wrong. When Julie landed a large contract that would require 15 more people to be hired, Mary recommended that Julie hire a professional payroll manager. I can handle the other stuff, but the Canada Revenue Agency and the employee complaints are driving me crazy. I just can't keep up. I will be as helpful as I can.

Julie led Tina to her office and rushed off to take care of a crisis on the loading dock. Before Tina could get settled, Mary walked in, I am so happy to meet you. Just tell me what you need and Liza and I will get it for you. The employees are paid bi-weekly and this Wednesday is a payday. I haven't prepared anything

because I knew you would be here.

Exhibit: Mary's 2009 Remittance list

Item	Amount	How much to remit	When
Payroll	Annual $500,000	$1,000 payroll remittance	Monthly Pay balance plus interest when assessment arrives
CPP	4.95% earnings (to annual max)	$2,062.50	Monthly
EI	1.98% earnings (to annual Max)	$49,000	Year-end
GST	Net annual subject to HST $200,000 at 13%	$1,500	Monthly Use the refund to go toward payroll remittances due

Please answer the following questions:

a) Who are the key stakeholders in this case?
b) What are the resources needed?
c) What resources are available?
d) What is the main issue in this case?

Thank you in advance!

apricotsalmon963

Yesterday I got a call from Human Resources & Skills Development Canada . He said we aren't filing ROEs. Do you know what they are?

Company History

Innovative Patios is a private corporation that installs patios stones made from recycled material. The company was started twenty years ago by Julie's parents Elena and Seamus. Elena and Seamus were immigrants to Canada and earned a living through a small landscaping business. They hired workers on contract and paid in cash for many years until they were audited by the tax department.

To avoid further problems, they incorporated the company five years ago, but their workers on the payroll, and hired Mary as a bookkeeper to fill out all the government forms.

Payroll Department

Mary quickly became Innovative Patios office manager, human resources manager, financial administrator and payroll manager. The workload was overwhelming and she convinced Julie to hire Liza to help her. Liza suggested they use Quicken to keep track of all accounts including payroll.

Mary and Liza fill out all cheques by hand for the ten employees and fill out all the government forms by hand. The company's remittances are based on a checklist Mary developed in 2009 (See Exhibit), Mary is unhappy because she works very hard, but everyone complains about things being wrong. When Julie landed a large contract that would require 15 more people be hired, Mary recommended that Julie hire a professional payroll manager. I can handle the other stuff, but the Canada Revenue Agency and the employee complaints are driving me crazy. I just can't keep up. I will be as helpful as I can.

because I knew you would be here.

Exhibit: Mary's 2009 Remittance list

Item	Amount	How much to remit	When
Payroll	Annual $500,000	$1,000 payroll remittance	Monthly Pay balance plus interest when assessment arrives
CPP	4.95% earnings (to annual max)	$2,062.50	Monthly
EI	1.98% earnings (to annual Max)	$49,000	Year-end
GST	Net annual subject to HST $200,000 at 13%	$1,500	Monthly Use the refund to go toward payroll remittances due

Please answer the following questions:

a) Who are the key stakeholders in this case?
b) What are the resources needed?
c) What resources are available?
d) What is the main issue in this case?

Thank you in advance!

raspberrybee29

ECO 108 Lecture 6: One Class ECON 6

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