The marginal revenue product of labor in firm X is MRPL = 35 - .23L, where L is the number of workers. If the current wage for workers in firm X's industry is $7.25 per hour, how many workers will be employed by the firm? (round to the nearest worker.)

Suppose that the single-priced monopolist’s demand is: P = 12 – 2Q, and marginal revenue is: MR = 12 – 4Q. Assume that marginal cost is: MC = 4, and fixed cost is 0.

a. Determine the profit maximizing price and output.
b. Calculate the amount of economic profit or loss at the profit maximizing output.
c. Using a diagram to explain your answers in (a) and (b).
d. Calculate the price elasticity of demand at the profit maximizing point and explain it.

The owner of a movie theater company would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

(a)

Use α = 0.01 to test the hypotheses

for the model

y = β₀ + β₁x₁ + β₂x₂ + ε,

where

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Reject H₀. There is insufficient evidence to conclude that there is a significant relationship among the variables

Do not reject H₀. There is sufficient evidence to conclude that there is a significant relationship among the variables.    

Do not reject H₀. There is insufficient evidence to conclude that there is a significant relationship among the variables.

Reject H₀. There is sufficient evidence to conclude that there is a significant relationship among the variables.

(b)

Use α = 0.05 to test the significance of

β₁.

State the null and alternative hypotheses.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Reject H₀. There is insufficient evidence to conclude that β₁ is significant.

Reject H₀. There is sufficient evidence to conclude that β₁ is significant.  

Do not reject H₀. There is insufficient evidence to conclude that β₁ is significant.

Do not reject H₀. There is sufficient evidence to conclude that β₁ is significant.

Should x₁ be dropped from the model? Yes or No?

(c)

Use α = 0.05 to test the significance of

β₂.

State the null and alternative hypotheses.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Do not reject H₀. There is insufficient evidence to conclude that β₂ is significant.

Reject H₀. There is sufficient evidence to conclude that β₂ is significant.    

Reject H₀. There is insufficient evidence to conclude that β₂ is significant.

Do not reject H₀. There is sufficient evidence to conclude that β₂ is significant.

Should x₂ be dropped from the model?Yes or No ?  

1. Maximising revenue should be the goal of the company.

   True

   False

2. QUESTION 2Which one of the following statements about business valuation is NOT true?

3. 		Actions by competitors also affect the value of a business.
   		The value of a business changes over time.
   		There is no such thing as the market value for a business.
   		There is a single value for any business.

4. QUESTION 3In finance, the fundamental determinant of an asset's value is the future cash flow it is expected to generate.

5. True

   False

6. 1 points   

   QUESTION 4It is easier to calculate the market value of a private firm, compared to a public firm.

7. True

   False

8. QUESTION 5Young, rapidly growing companies can be more difficult to value compared to mature, stable companies. Why?

9. 		Young companies might only have 2 or 3 years of historical records compared to a mature company with years of records.
   		Many young, rapidly growing companies are not yet profitable and their future is less certain than for mature companies.
   		Due to the amount of money already invested in a young company, cash flows will be negative for the first few years. This makes valuation more difficult.
   		All of the above

10. QUESTION 6An important issue that must be considered when valuing a business is whether a controlling ownership interest or a minority interest is being valued.

11. True

    False

12. QUESTION 7 There is no such thing as ONE value for a business, because...

13. 		the value of a business can be different to different investors.
    		valuing a business is really hard, and no one knows how to do it.
    		accountants and financial managers like to argue.
    		the share market goes up and down all the time.

14. QUESTION 8The value of a business changes over time because...

15. 		changes in general economic conditions, industry conditions, and decisions made by managers all affect value.
    		actions by competitors also affect value.
    		the investment, operating and financing decisions made by managers also affect value.
    		All of the above.

16. QUESTION 9What are the three categories of business valuation?

17. 		Cash flow, growth and capital approach
    		Cost, market and income approach
    		Profit, loss and Excel approach
    		Assets, liabilities and capital approachQUESTION 10'Market Capitalisation' of a company listed on the stock market refers to:

18. 		The market value of the company.
    		The fundamental value of the company.
    		The book value of the company.
    		Nothing, this is not a term we use in finance.

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014.

(a) Construct a time series plot.

A time series plot contains a series of 6 points connected by line segments. The horizontal axis ranges from 0 to 7 and is labeled: Period. The vertical axis ranges from 0 to 80 and is labeled: Revenue ($ billions). The points are plotted from left to right in a fairly consistent downward, diagonal direction at regular increments of 1 period starting at period 1. The points are between 23 to 67 on the vertical axis.

A time series plot contains a series of 6 points connected by line segments. The horizontal axis ranges from 0 to 7 and is labeled: Period. The vertical axis ranges from 0 to 80 and is labeled: Revenue ($ billions). The points are plotted from left to right at regular increments of 1 period starting at period 1. Initially, the points are plotted in a downward, diagonal direction. However, after the third point, the points are plotted in an upward, diagonal direction that becomes steeper as period increases. The points are between 17 to 67 on the vertical axis.

A time series plot contains a series of 6 points connected by line segments. The horizontal axis ranges from 0 to 7 and is labeled: Period. The vertical axis ranges from 0 to 80 and is labeled: Revenue ($ billions). The points are plotted from left to right at regular increments of 1 period starting at period 1. Initially, the points are plotted in an upward, diagonal direction. However, after the third point, the points are plotted in a downward, diagonal direction that becomes steeper as period increases. The points are between 23 to 71 on the vertical axis.

A time series plot contains a series of 6 points connected by line segments. The horizontal axis ranges from 0 to 7 and is labeled: Period. The vertical axis ranges from 0 to 80 and is labeled: Revenue ($ billions). The points are plotted from left to right in a fairly consistent upward, diagonal direction at regular increments of 1 period starting at period 1. The points are between 23 to 67 on the vertical axis.

What type of pattern exists in the data?

The time series plot shows an upward linear trend.The time series plot shows a downward curvilinear trend.     The time series plot shows an upward curvilinear trend.The time series plot shows a downward linear trend.

(b) Develop a linear trend equation for this time series to forecast revenue (in billions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c) What is the average revenue increase per year (in billions of dollars) that this company has been realizing? (Round your answer to three decimal places.)

$  billion

(d) Compute an estimate of this company's revenue (in billions of dollars) for 2015. (Round your answer to two decimal places.)

$  billion

a) Say a wheat farmer from the Midwest wants to increase his total revenue. In this perfectly competitive market where there are many farmers selling wheat, the going price for wheat is $10 a bushel. Do you think this farmer can increase his total revenue by raising the price he charges for wheat? Why or why not?

b) If that farmer lived in a community where he was the only supplier of wheat and if wheat was the primary food source for the community, do you think he could increase his total revenue by raising the price he charges for wheat? Why or why not?

30. If the adjusting entry to record the accrued interest revenue is omitted:

Select one:

a. net income would be overstated and liabilities would be overstated.

b. net income would be understated and assets would be understated.

c. net income would not be affected but assets would be overstated.

d. no impact on both net income and assets.

31. Presented below is the adjused trial balance columns on a worksheet of Kimberly Company for the year ended December 31, 2018. Using this adjusted trial balance to answer questions 31 and 32:

                                                                                Adjusted Trial Balance
Account Titles                                                             Debit             Credit
______________                                                       _____            _____
Cash                                                                           1,000
Supplies                                                                         300
Prepaid Insurance                                                         2,000
Equipment                                                                 24,000
Accumulated Depreciaton- Equipment                                              49,000
Accounts Payable                                                                                2,400
Notes Payable                                                                                      4,000
Rent Payable                                                                                          600
Common Stock                                                                                     5,300
Retained Earnings                                                                              10,000
Dividends                                                                      2,400
Copy Revenue                                                                                     4,900
Utility Expense                                                                 400
Supplies Expense                                                            800
InsuranceExpense                                                           200
Depreciation Expense                                                      400
Rent Expense                                                                   600
                                                                                    ________     ________
Totals                                                                          32,100          32,100

What is the net income (net loss) of Kimberly Company for the year ended December 31, 2018?

Select one:

a. net income, $2,500.

b. net income, $4,500.

c. net income, $100.

d. net loss, ($1,500).

The government imposes a tax on Liquified Petroleum Gas (LPG) to compensate the loss in revenue due to decline in oil prices. This tax revenue is planned to be used exclusively for improving the health facilities in the local health centers. The tax revenue collected in Al Dakhiliyah Governorate until for the year 2019 amounts to RO 40,000. The governorate spent RO 37,000 for purchase of medical equipments in the local health centers.

1) what kind of government funds is used?

2) write the journal entries in each of the respective funds?

3)explain the Basis of accounting, the accounting treatment and the measurement focus of these transactions in the respective funds where these transactions are accounted.

Johnson Associates is a catering firm in Tucson, Arizona, with revenue of $4 million. The business began ten years ago as a one-owner bakery, but has dramatically changed in size and function during the past five years. The four partners foresee the business doubling in sales revenue within two years, and expect the firm to expand into other services including flowers, furnishings, decorations, and music. Johnson Associates employs six full-time and ten part-time employees. The four partners also work full-time, each partner managing a separate business function. The firm currently uses a volume-based costing system installed seven years ago and modified three years later.

Required: (a) With just the above information, comment on Johnson Associates changing and future costing system needs. (b) Is Johnson Associates a probable candidate for an activity-based costing system (ABC)? Why or why not?

“Price is always equal to average revenue. It is a mathematical certainty.” Discuss this statement fully. Does this imply that P is always equal to marginal revenue as well?