Sales Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:

2. What if FlashKick added a third line—tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $42 each in January and February, and $45 each in March? Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.

Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point?

a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,250

Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the number of jungle gyms sold by Yerke at the break-even point?

a.668

b.1,002

c.1,750

d.2,625

e.875

Please answer these with true and false answer, but use your explanations. Use diagrams if necessary.

1. Ian buys 100 shares of a hot cannabis stock for $1 each on the stock market and pays a brokerage commission of $9.99. The transaction adds $109.99 to GDP.

2. If the result of cannabis legalization in Canada is that the value added from the illegal transactions moves to a legal market, then GDP will increase and so will economic well-being.

3. Imagine that a country produces only two final goods: Cannabis (Cs) and Munchies (Ms). In Year 1 it produced 10 Cs at a price of $5 each and 50 Ms at a price of $1 each. In Year 2 it produced 15 Cs at a price of $6 and 50 Ms at a price of $2. If Year 1 is the base year, the inflation rate in the GDP deflator between Years 1 and 2 is 52%.

4. When aggregate consumption is $100 (billion) while disposable income is only $80 (billion), the marginal propensity to save from disposable income must be negative.

            Suppose a hypothetical oil market consists of two oil producers Jack & Jill. Suppose the marginal cost of pumping oil is equal to zero, while the demand for oil is described by the following schedule.

Quantity                               Price                         Total Revenue (and total profit)

0 gallons                                $120                                                               $   0

10                                            110                                                                  1100

20                                            100                                                                 2000

30                                            90                                                                    2700

40                                            80                                                                    3200

50                                            70                                                                    3500

60                                            60                                                                    3600

70                                            50                                                                    3500

80                                            40                                                                    3200

90                                            30                                                                    2700

100                                         20                                                                    2000

110                                         10                                                                    1100

120                                         0                                                                            0

a.         What would be the equilibrium outcome (price and quantity) if the markets were either competitive or monopolistic?

b.         If both Jack & Jill form a collusion, what quantity and price would they try to set?

c.         If both the duopolists don’t act together but instead make production decisions independently, what quantity would they produce and price they would set?

d.         Explain and give reasons for your answers.

10. If a country has rising incomes and people are buying more imports, what do you expect to happen to the value of that country's currency in comparison with other countries in which incomes are not rising as fast? Explain in your answer how you reached this conclusion by considering demand and/or supply of the currency.

11. Given the following information, what is the price elasticity of demand between $10 and $20 if these are the reservation prices people have for this good.

$5 . $5 . $10 $10 . $10 $10 . $15 . $15 . $20 $20

12.

Given the following information for three goods, which two are substitutes and which two are complements. You don't need to calculate the cross price elasticities here but which will be negative and which will be positive. Explain how you reached these conclusions.

2) Two types of customers make up the market for Armoyas. There are 100 type A customers, each of whom is willing to pay up to $10 for an Armoya. There are 50 type B customers, each willing to pay up to $8 for an Armoya. No customer wishes to buy more than a single Armoya. The monopolist cannot differentiate between the types of customer. The average and marginal cost of production is constant at $6/Armoya.

a) What is the selling price of the good, and how much profit does the monopolist make?

b) The monopolist is offered the opportunity to advertise Armoyas at a cost of $80. The advertisement is predicted to attract another 100 type B customers. Will the advertisement be placed? What is the selling price of the good, and how much profit does the monopolist make?

c) Suppose the advertisement attracts no new customers, but raises the price all existing customers are willing to pay by $1. Will the advertisement be placed? What is the selling price of the good, and how much profit does the monopolist make?

Two astronauts floating at rest with respect to their ship in space decide to play catch with a 2-kg asteroid. Joe (whose mass is 100 kg) throws the asteroid at 20 m/s toward Jesse (whose mass is 68 kg). She catches it and throws it back at 18 m/s (with respect to the ship). What is Joe's speed right after his first throw? m/s What is Jesse's speed right after her first catch? m/s What is Jesse's speed right after her first throw? m/s What is Joe's speed right after his first catch? m/s

The consumer demand equation for tissues is given by

q = (100 − p)²,

where p is the price per case of tissues and q is the demand in weekly sales.

(a) Determine the price elasticity of demand E when the price is set at $34. (Round your answer to three decimal places.)
E =

Interpret your answer.

The demand is going  ? up down by  % per 1% increase in price at that price level.

(b) At what price should tissues be sold to maximize the revenue? (Round your answer to the nearest cent.)
$

(c) Approximately how many cases of tissues would be demanded at that price? (Round your answer to the nearest whole number.)
cases per week

2. Consider the following demand schedule for widgets:

What is the price elasticity of demand for widgets between $8 and $10?______ What is the elasticity of demand between $2 and $4? ______ As price decreases, demand becomes more / less elastic. What is total revenue per month at a price of $4?______ A reduction in price from $4 to $2 causes total revenue to rise / fall because demand is elastic / inelastic. If price is currently $2, then a 1% increase in price will cause a______ percent increase / decrease in quantity demanded.