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Hart Manufacturing makes three products. Each product requiresmanufacturing operations in three departments: A, B, and C. Thelabor-hour requirements, by department, are as follows:

Department Product 1 Product 2 Product 3
A 2 3 2
B 2.5 1 3
C 0.25 0.25 0.5

During the next production period, the labor-hours available are400 in department A, 325 in department B, and 50 in department C.The profit contributions per unit are $24 for product 1, $30 forproduct 2, and $31 for product 3.

Formulate a linear programming model for maximizing total profitcontribution. If required, round your answers to two decimalplaces. For those boxes in which you must enter subtractive ornegative numbers use a minus sign. (Example: -300)

Let Pi = units of product iproduced

Max P1 + P2 + P3
s.t.
P1 + P2 + 2P3 ≤
2.5P1 + P2 + P3 ≤
P1 + 0.25P2 + P3 ≤
P1, P2,P3 ≥ 0

Solve the linear program formulated in part (a). How much ofeach product should be produced, and what is the projected totalprofit contribution?

P1 =

P2 =

P3 =

Profit = $

After evaluating the solution obtained in part (b), one of theproduction supervisors noted that production setup costs had notbeen taken into account. She noted that setup costs are $650 forproduct 1, $750 for product 2, and $550 for product 3. If thesolution developed in part (b) is to be used, what is the totalprofit contribution after taking into account the setupcosts?

Profit = $

Management realized that the optimal product mix, taking setupcosts into account, might be different from the one recommended inpart (b). Formulate a mixed-integer linear program that takes setupcosts into account. Management also stated that we should notconsider making more than 160 units of product 1, 125 units ofproduct 2, or 130 units of product 3. Here introduce a 0-1 variableyi that is one if any quantity ofproduct i is produced and zero otherwise. If required,round your answers to two decimal places. For those boxes in whichyou must enter subtractive or negative numbers use a minus sign.(Example: -300)

Max P1 + P2 + P3 + y1 + y2 + y3
s.t.
P1 + P2 + 2P3 ≤
2.5P1 + P2 + P3 ≤
P1 + 0.25P2 + P3 ≤
P1 + y1 ≤
P2 + y2 ≤
P3 + y3 ≤
P1, P2,P3 ≥ 0; y1,y2, y3 = 0, 1

Solve the mixed-integer linear program formulated in part (d).How much of each product should be produced, and what is theprojected total profit contribution? Compare this profitcontribution to that obtained in part (c).

P1 =

P2 =

P3 =

Profit = $

The profit is increased by $ .

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a) Young plc owns a number of subsidiary companies. During the year Young pic has undertaken the following transactions which have not yet been accounted for in full:
(1) On 1 July 2018 Young plc purchased 40% of Daquiri Ltd's ordinary shares for a cash payment of £350,000. This investment gave Young pic significant influence over Daquiri Ltd. Daquiri Ltd made a profit of $£ 126,000$ for the year ended 31 December 2018.
The only accounting entries that have been posted are debit investments in the statement of financial position and credit bank. Young plc has not yet accounted for any further entries in relation to Daquiri Ltd in its consolidated financial statements.
(2) On 1 August 2018 Young plc disposed of a subsidiary company, Singapore Ltd, in which it held a $70 \%$ ownership. The only accounting entries that have been posted are debit bank and credt investmerts in the statement of financial position. The directors of Young plc are unsure how to account for a disposal of a subsidiary company in either the individual company accounts or the consolidated financial statements.
(3) On 1 January 2018 Young purchased $70 \%$ of Star GmbH (a company operating in Germany). The directors of Young plc are unsure how to account for the investment in Star $\mathrm{GmbH}$. The orly accounting entries that have been made in relation to this acquisition are debit investments in the statement of financial position and credt bank. In particular the directors of Young ple do not know how to account for:
Statement of profit or loss items;
Statement of financial position items;
Goodwill:
 
Required
Explain the required IFRS financial reporting treatment of (1) to (3) above in relation to the consolidated financial statements of Young pic for the year ended 31 December 2018. Include all relevant calculations. You should also explain why the specific treatment you identity is appropriate.
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Planet Economics consists of three countries only; they are A, B and C.  Table 1 provides some macroeconomic data for these countries.

 

Table 1

 

A

B

C

Gross domestic product, GDP

 

6225

 

Consumption, C

4262.5

 

5915

Investment, I

1162.5

 

 

Government spending, G

 

1380

 

Taxes, T

 

 

1352

Exports of goods and services, EX

 

 

 

Imports of goods and services, IM

 

 

 

Private saving, SP

 

 

 

Public saving, SGC

 

0

 

National saving, S

 

 

 

Net unilateral transfer

0

0

0

Current account, CA

 

 

 

Sales of country’s financial assets to foreign residents

 

 

3190

Purchases of foreign financial assets by domestic residents

3115

 

 

Official reserve transactions, ORT

 

 

– 390

Financial account, KA

 

– 550

 

Capital account

 

 

 

Note:  Empty cell only means the data is not given in the question, it does not mean the variable takes a value of zero. 

 

Country-specific information:

Country A:

  • The households consume 55% of the country’s output.
  • A has twin deficits and the size of (each) deficit is 10% of the country’s output.
  • The sales of A’s products to B are worth 1550, while the purchases of B’s products by A are worth 3280.
  • The value of financial assets sold to C’s residents is equal to 1945.

 

Country B:

  • Private consumption represents 60% of GDP.
  • The government of B runs a balanced budget.
  • The central bank of B does not buy or sell any of its official reserves.
  • The amount of financial assets purchased by the residents of B from the residents of A reaches 1810, while the amount of financial assets purchased from the residents of C is 1853.

 

Country C:

  • Public savings and private savings are equal to 169 and 1183 respectively.
  • C sells 1370 worth of final products to A.
  • The level of C’s products purchased by B is 1165.
  • Residents of C receive (net) asset transfers of 255 and 225 from residents of A and B respectively. No market transactions are involved in these transfers. 

 

Other information:

  • The central banks of all three countries do not make any transaction with the private sector. In other words, the central banks only make transactions with other countries’ monetary authorities.

 

Complete the above table.  You are not required to provide explanation to your answer for this question; however, you should understand the logic behind the entry of each cell so that you can work on similar questions in the future.

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