Stanley department stores reported net income of $720,000 for the year ended december 31, 2018. additional information: common shares outstanding at jan. 1, 2018 80,000 incentive stock options (vested in 2017) outstanding throughout 2018 24,000 (each option is exercisable for one common share at an exercise price of $37.50) during the year, the market price of stanley’s common stock averaged $45 per share. on aug. 30 stanley sold 15,000 common shares. stanley’s only debt consisted of $50,000 of 10% short term bank notes. the company’s income tax rate is 40%. required: compute stanley’s basic and diluted earnings per share for the year ended december 31, 2018.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?