SolveSuppose Fox has reference-dependent preferences over money, stickers, and airplanes. Lethis consumption in money, stickers, and airplanes bec1,c2, andc3, respectively, and let hisreference points in money, stickers, and airplanes ber1,r2, andr3, respectively. Then, Fox’sutility is given byv(c1-r1) +v(4c2-4r2) +v(4c3-4r3),wherev(x) =xforx≥0, andv(x) = 2xforx <0. Normalize Fox’s initial amount of moneyto zero, and suppose he starts off with zero stickers and zero airplanes.1. What will be Fox’s utility from losing two stickers, gaining one airplane, and gaining$6?2. Fox arrives at the experiment, and it turns out that he receives an $8 show-up bonus, which he doesnotincorporate into his reference point for money. Suppose Fox is givena sticker (and he does incorporate this into his reference point). Calculate his sellingprice by (i) writing down his reference point; and (ii) solving for the pricepS

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows. direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow. fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.