The demand curve of a perfectly competitive market is horizontal and equal to marginal revenue curve. However, the demand curve of a monopoly slopes downward with marginal revenue curve below the demand curve.

Discuss the difference in the shape of the demand curve in both markets

Discus why the MR curve of the monopoly is below it demand curve while the competitive market is equal to AR

Discuss the assertion “Monopolist are price-giver while perfectly competitive market is a price- taker”

The revenue R (in millions of dollars) for a company from 2003 through 2016 can be modeled by

R = 6.211t³ − 152.89t² + 990.1t − 414,    3 ≤ t ≤ 16

where t represents the year, with t = 3 corresponding to 2003.

(a) Use a graphing utility to approximate any relative extrema of the model over its domain. (Round each value to two decimal places.)

Relative maximum: (t,R)=

Relative minimum: (t,R)=

(b) Use the graphing utility to approximate the intervals on which the revenue for the company is increasing and decreasing over its domain. (Enter your answers using interval notation. Round each value to two decimal places.)

Increasing: ( )

Decreasing: ( )

(c) Use the results of parts (a) and (b) to describe the company's revenue during this time period.

A movie box office gross is used to predict DVD Revenue. For a sample of 20 movies, an analysis of variance showed that b1 = 0.3224 and Sb1 = 0.0645.

1. At the 0.05 level of significance, is there evidence of a linear relationship between box office gross and DVD Revenue?

2. Construct a 95% confidence interval estimate of the population slope, B1.

Answer the following:

tSTAT=

Critical value(s) is(are)?

The 95% confidence interval is?

Does an accrual revenue normally have a debit or a credit balance? Please elaborate.

In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

10. A retailer and a toy manufacturer have signed a revenue-sharing contract for a kind of toy. Each toy costs the toy manufacturer $14 to produce. The toy will be sold to the retailer for $16. The retailer in turn prices a toy at $32 and forecasts demand to be normally distributed, with a mean of 5000 but the standard deviation still unknown. All unsold toys are discounted to $8, and then sold at this price. The retailer will share 25 percent of the revenue (obtained from sales at the regular price, but not sales at the discounted price) to the toy manufacturer, and keep 75 percent for itself.

    1. A) How many toys should the retailer order with this revenue-sharing contract? (10 points)

    2. B) In order to maximize the total profit of the toy manufacturer and the retailer, can you

       design a new revenue-sharing contract such that the total profit is maximized and at the same time, the retailer is actually selling to the toy manufacturer with a wholesale price less than the manufacturing cost? (14 points)

Please calculate the COGS, changes of Inventory, Revenue and all Sales and Inventory was purchased on account. Use the FIFO method.

1. Contribution margin is:

      A.    the excess of sales revenue over variable cost

      B.    another term for volume in the "cost-volume-profit" analysis

      C.    profit

      D.    the same as sales revenue

2. Salim’s fixed costs are RM41, 500, the variable cost is RM12 per unit. If Salim sells the product for RM22 per unit, the breakeven point is:

      A.    4,150 units

      B.    8,300 units

      C.    2,075 units

      D.    6,225 units

3. The fixed costs of Juara Co. are RM500, 000 and the unit contribution margin is RM40. If the fixed costs are increased by RM80,000, what is the break-even point?

      A.    14,500                                   

      B.    12,500

      C.    8,333                                     

      D.    9,667

4. The followings are underlying assumptions of CVP analysis EXCEPT:

A.          the changes in the activity are the only factors that affect costs

B.    the costs classifications are reasonably accurate

C.    the beginning inventory is larger than ending inventory

D.     sales mix is constant

5. Fatt Choo Sdn Bhd’s sales are RM820, 000, variable costs are 62% of sales, and operating income is RM260, 000, what is the contribution margin ratio?

A.    53.1%                                    

B.    38%

      C.    62%                                       

D.    32%

6. If fixed costs are RM500, 000 and the unit contribution margin is RM12, what amount of units must be sold in order to realize an operating income of RM100, 000?

A.    5,000                                     

B.    41,667

C.    50,000                                   

D.    58,333

7. If sales, variable costs and operating income are RM400, 000, RM200, 000 and RM100,000 respectively, what is the contribution margin ratio?

1. 75%
2. 50%
3. 25%
4. 0%

8. Titian Bhd had a contribution margin of RM300, 000 and a contribution margin ratio of 20%, what is the total variable cost?

1. RM1,500,000
2. RM1,200,000
3. RM240,000
4. RM60,000

9. Zaza West Sdn Bhd reported the following data in its Statement of Profit or Loss and Other Comprehensive Income:

Unit sold                                          8,000     

Sales revenue                                     RM9,600,000

            Variable costs                                  RM6,000,000

Fixed cost                                RM2,600,000

If the company desired to earn a target net profit of RM1,270,000, it would have to sell:

1. 5,778 units
2.   8,600 units
3.   10,160 units
4.   11,908 units