R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 4:3:3 (easy, moderate, business). Fixed costs total $19,575 for the tax season. Type of Return Fee Charged Variable Cost per Return

Easy (form 1040EZ) $ 44 $ 27

Moderate (form 1040) 119 72

Business 269 97

(1) Determine the selling price per composite unit

Ratio Fee Charged Total per composite unit

Easy (form 1040EZ) 3

Moderate (form 1040)

Business

(2) Determine the variable costs per composite unit

Ratio Variable cost per return Total per composite unit

Easy (form 1040EZ)

Moderate (form 1040)

Business

Contribution margin per composite unit

Contribution margin

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

A) plot the m1 and m2 money stock in the us from 1990-2015. (hint: you may use the data tools provided by fred.) (b) plot the nominal interest rate from 1960 to 2014. (hint: you can either use the daily interest rates for selected u.s. treasury, private money market and capital market instruments from or the effective federal funds rate fromfred.) (c) the consumer price index (cpi) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. intuitively, the cpi represents the cost of living or the average price level. plot the cpi from 1960 to 2013.(d) the inflation rate is the yearly percentage change in the average price level. in practice, we usually use the percentage change in the cpi to compute the inflation rate. plot the inflation rate from 1960 to 2013.(e) explain the difference between the ex-ante and ex-post real interest rate. use the fisher equation to compute the ex-post real interest rate. plot the nominal interest rate and the ex-post real interest rate from 1960 to 2013 in the same graph.

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?