1. The Revenue Operations team (RevOps) provides system requirements to the Finance Engineering team (FinEng) when any change to the revenue accounting systems is needed. Examples of these changes include launching new products and features, modifications, and/or accounting policy changes. FinEng's role is to deploy the requirements within the revenue accounting systems. Once FinEng deploys the requirements in the systems, RevOps completes User Acceptance Testing (UAT) to ensure the changes to the system are performing as expected. When performing UAT, what factors would you consider?

The following information is available for the Mercy Hospital:

Analyze this statement of operations and write a paragraph on what you perceive to be the strengths and weaknesses of Mercy Hospital. There are no mistakes in the above example.

1, Which of the following is characteristic of a perfect competitive seller's demand curve?

A, Price and marginal revenue are equal at all levels of output.

B, marginal revenue is less than price.

C, The price elasticity |E| is always 1.

D, It is the same as the market demand curve.

2,A perfect competitive firm will always make an economic profit if:

A, P = AC.

B, P > AVC.

C, P = MC.

D, P > AC.

3, If a firm is confronted with economic losses in the short run, it will decide whether or not to produce (or shutdown) by comparing:

A, marginal revenue and marginal cost.

B, price and average variable cost.

C, total revenue and total cost.

D, total revenue and total fixed cost.

4, A firm finds that at its MR = MC output, its TC = $5000, VC = $4000 and total revenue is $2000. In the short run, this firm should:

A, shut down and lose $0

B, produce and lose $3000

C, produce and earn $3000 profits

D, shutdown and lose $1000

E, produce and lose $1000

5, In the short run a perfectly competitive seller will shut down if:

A, it cannot produce at an economic profit.

B, price is less than average variable cost.

C, price is less than average fixed cost.

D, price is less than average cost.

Exercise 21-3 Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,540 1,930 2,200 2,740 Tax 3,330 2,510 2,110 2,780 Consulting 1,730 1,730 1,730 1,730 Average hourly billing rates are auditing $83, tax $95, and consulting $103. Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. THOME AND CREDE, CPAs Sales Revenue Budget Quarter 1 Quarter 2 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing $ $ $ $ Tax Consulting Totals $ $ THOME AND CREDE, CPAs Sales Revenue Budget Quarter 3 Quarter 4 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing $ $ $ $ Tax Consulting Totals $ $ THOME AND CREDE, CPAs Sales Revenue Budget Year Dept. Billable Hours Billable Rate Total Rev. Auditing $ $ Tax Consulting Totals $

18. A firm should shut down in the short run if:

     a. price is greater than average variable costs

     b. average fixed costs are greater than marginal revenue

     c. price is less than average variable costs

     d. total costs are greater than fixed costs

19. A firm is said to be making profits when:

     a. marginal revenue exceeds marginal costs.

     b. marginal revenue exceeds variable costs.

     c. average revenue exceeds average total costs.

     d. average revenue exceeds average variable costs.

20   If a competitive firm finds that at current output levels, marginal cost exceeds marginal revenue , it should:

     a. shut down.

     b. raise prices.

     c. increase output.

     d. reduce output.

Price-Demand Equation x = 2750-25p

Fixed Cost 8000

Variable Cost 50

Construct the cost function C(x) and describe the monthly cost of this business.

Construct the profit function R(x) and describe the monthly revenue. Determine the domain of R(x) which represents the range of units it could produce.

Construct the profit function P(x), determine break-even points, what production levels are profitable, what levels incur a loss. graph this.

at a monthly level of production within the domain of the revenue function (you can select within the profitable amount), determine the total cost, revenue, and profit at this level. Then determine the marginal cost, marginal revenue and marginal profit plus interpret these.

According to the price – demand equation, at what unit price ($p)) are you selling your product if demand is at your chosen production level? Write a function for the elasticity of demand E(p). Is E(p) elastic or inelastic, why? how increasing or decreasing the price would affect revenue. What unit price would result in unit elasticity?

What is the optimal production level that will maximize profits and find the max profit, show equation and graph.

Determine the revenue and cost at this optimal production level. Use the price – demand equation to determine what price should you sell each unit so that you can maximize profit.

Jake's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Jake produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Jake faces. As you can see, to sell the additional engine, Jake must lower his price from $80,000 to $40,000 per fire engine. Note that while Jake gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price.

Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000.

Revenue LostRevenue Gained012345678910200180160140120100806040200PRICE (Thousands of dollars per fire engine)QUANTITY (Fire engines)Demand

Jake increase production from 8 to 9 fire engines because the dominates in this scenario.

True or False: If Jake's Fire Engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000 would result in a decrease in the production quantity, but an increase in total revenue.

True

False