1. Research has shown that for a company’s toy truck every increase of $0.10 in the price will

result in 200 fewer sales. At one point, when the price was $2.35, the company sold 18,500

trucks. A reasonable employee of the company wondered aloud what price would maximize

the revenue generated by the sale of the trucks for the company.

a.) Determine the formula of the function N(x) that gives the number of trucks sold when

the price is x dollars. Draw a graph of the function N(x).

b.) Determine the formula for the function R(x) that gives the revenue generated when

the price is x dollars. Graph y=R(x).

c.) Determine algebraically the price that yields the maximum revenue. How much

revenue is generated? How many trucks are sold at this price?

d.) Let’s say that the company wants to sell 20,000 trucks. How much should they

charge and how much revenue is generated?

e.) What is the average rate of change in revenue from x=$2.50 to x=$2.85? What is the

average rate of change from x=$3.00 to $3.25? What units are associated with the

average rate of change? Interpret each average rate of change in the context of the

given situation. What do these average rates of change tell you about the shape of the

graph of R(x)?

1. Build the ultimate buyer persona for Mntrni? 2. Suggest 3 to 5 different revenue streams ideas that will work with this brand, you can use single or hybrid revenue sources and justify your reasons for each.

I. Multiple Choices (10 Points):

1. Angelo is a wholesale meatball distributor. He sells his meatballs to all the finest Italian restaurants in town. Nobody can make meatballs like Angelo. As a result, his is the only business in town that sells meatballs to restaurants. Assuming that Angelo is maximizing his profit, how will meatball prices compare with marginal cost?

a. Meatball prices will be less than marginal cost.

b. Meatball prices will equal marginal cost.

c. Meatball prices will exceed marginal cost.

d. Meatball prices will be a function of supply and demand and will therefore oscillate around marginal costs.

2. When a monopolist increases the amount of output that it produces and sells, what happens to its average revenue and its marginal revenue?

a. Both its average revenue and its marginal revenue increase.

b. Its average revenue increases, and its marginal revenue decreases.

c. Its average revenue decreases, and its marginal revenue increases.

d. Both its average revenue and its marginal revenue decrease.

3. Which of the following feats is impossible for a monopolist to accomplish?

a. controlling the price of its good

b. charging a higher price and continuing to sell the same quantity

c. operating at a point on the upper half of the demand curve

d. increasing total surplus in a market compared to that in a competitive market

4. A monopoly firm can sell 200 units of output for $36.00 per unit. Alternatively, it can sell 201 units of output for $35.80 per unit. What is the marginal revenue of the 201st unit of output? a. –$35.80

b. –$4.20

c. $4.20

d. $35.80

5. A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $30, its average revenue is $40, and its average total cost is $34. What is the firm’s profit-maximizing price?

a. $30

b. between $30 and $34

c. between $34 and $40

d. $40

6. When a new firm enters a monopolistically competitive market, what will happen to the individual demand curves faced by all existing firms in that market?

a. They will shift to the left.

b. They will shift to the right.

c. They will remain unchanged, but the quantity of demand will increase.

d. They will remain unchanged, but the quantity of demand will decrease

7. As some incumbent firms exit a monopolistically competitive market, what happens to profits of existing firms and product diversity in the market?

a. Profits of existing firms decline and product diversity in the market decreases.

b. Profits of existing firms decline and product diversity in the market increases.

c. Profits of existing firms rise and product diversity in the market decreases.

d. Profits of existing firms rise and product diversity in the market increases.

8. When a firm operates at efficient scale, which of the following explains the characteristic of the average-total-cost-curve?

a. Its average revenue must exceed the minimum of average total cost.

b. Its average revenue must be equal to the minimum of average total cost.

c. The average-total-cost curve must be falling.

d. The average-total-cost curve must be rising.

9. When consumers are exposed to additional choices that result from the introduction of a new product, what do we know?

a. Consumers are likely to have a lower degree of satisfaction

b. A product-variety externality is said to occur.

c. An advertising externality is said to occur.

d. Consumers are likely to experience negative consumption externalities.

10. Firm A produces and sells in a market that is characterized by highly differentiated consumer goods. Firm B produces and sells industrial products. Firm C produces and sells an agricultural commodity. Which firm is likely to spend the greatest portion of its total revenue on advertising?

a. Firm A

b. Firms A and B

c. Firm B

d. Firms B and C

Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following accounts on its books:

The following transactions, among others, occurred during the year:

Required

a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.
b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

b.

In May 2001, the Securities and Exchange Commission sued the former top executives at Sunbeam, charging the group with financial reporting fraud that allegedly cost investors billions in losses. Sunbeam Corporation is a recognized designer, manufacturer, and marketer of household and leisure products, including Coleman, Eastpak, First Alert, Grillmaster, Mixmaster, Mr. Coffee, Oster, Powermate, and Campingaz. In the mid-1990s, Sunbeam needed help: its profits had declined by over 80% percent, and in 1996, its stock price was down over 50% from its high. To the rescue: Albert Dunlap, also known as “Chainsaw Al” based on his reputation as a ruthless executive known for his ability to restructure and turn around troubled companies, largely by eliminating jobs. The strategy appeared to work. In 1997, Sunbeam’s revenues had risen by 18 percent. However, in April 1998, the brokerage firm of Paine Webber downgraded Sunbeam’s stock recommendation. Why the downgrade? Paine Webber had noticed unusually high accounts receivable, massive increases in sales of electric blankets in the third quarter 1997, which usually sell best in the fourth quarter, as well as unusually high sales of barbeque grills for the fourth quarter. Soon after, Sunbeam announced a first quarter loss of $44.6 million, and Sunbeam’s stock price fell 25 percent. It eventually came to light that Dunlap and Sunbeam had been using a “bill-and-hold” strategy with retail buyers. This involved selling products at large discounts to retailers before they normally would buy and then holding the products in third-party warehouses, with delivery at a later date. Many felt Sunbeam had deceived shareholders by artificially inflating earnings and the company’s stock price. A class-action lawsuit followed, alleging that Sunbeam and Dunlap violated federal securities laws, suggesting the motivation to inflate the earnings and stock price was to allow Sunbeam to complete hundreds of millions of dollars of debt financing in order to complete some ongoing mergers. Shareholders alleged damages when Sunbeam’s subsequent earnings decline caused a huge drop in the stock price. Required: How might Sunbeam’s 1997 “bill-and-hold” strategy have contributed to artificially high earnings in 1997? How would the strategy have led to the unusually high accounts receivable Paine Webber noticed? How might Sunbeam’s 1997 “bill-and-hold” strategy have contributed to a 1998 earnings decline? How does earnings management of this type affect earnings quality? In a 5–7 double-spaced, typed paper, provide complete answers to the questions at the end of the case, fully explaining your answer with cited support. In addition, discuss the ethical issues that surround the parties involved and their actions. Please note the expectation: this assignment is a paper, not simple replies to the case questions. The submitted paper should include an introduction, body, conclusion, and references page. APA style and formatting should be applied to citations and references.

The quarterly increase in a healthcare organization's revenue depends on the patient rating (poor, good, excellent, outstanding) of the organization and several other factors as shown in the model below:

revenue=β0+β1*rating+other factors+ε

The variable "rating" is a _______ variable.

options: