An electrical product manufacturing company provides the following information related to plant revenue, cost, and capacity. The purpose is to find the answers to the questions that are of primary interest to the company. The data is as follows:

Plant capacity 55,000 units

Total fixed cost $ 550,000

Unit Price $ 40

Variable cost $ 18

Tax rate 15%

Expected profit $ 85,000

Contribution margin $ 22

9. What would be the sale price of the product for which the plant would be at its break even point, if the fixed cost was $ 500,000, the variable cost was $ 50 and the maximum quantity to sell was 40,000?

10. Taking as a break even point the price of question 9, if the company wanted to obtain a profit of 30%, what would be the sale price of the product

The marginal revenue curve of a monopoly crosses its marginal cost curve at ​$31 per​ unit, and an output of 2 million units.

What is the​ profit-maximizing (loss-minimizing)​ output? () million units.

The price that consumers are willing to pay for this output is ​$39 per unit. If it produces this​ output, the​ firm's average total cost is ​$41 per​ unit, and its average fixed cost is ​$5 per unit.

What are the​ firm's economic profits​ (or economic​ losses)? ​$()

A company reports sales revenue of $314 million, cost of goods sold of $187 million, selling and administrative expenses of $77 million, depreciation of $20 million, and interest expense of $5 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

A company reports sales revenue of $313 million, cost of goods sold of $183 million, selling and administration expenses of $79 million, depreciation of $20 million and interest expense of $9 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

1. Below is a cost and revenue table for a perfectly competitive firm producing purple-spotted people eaters. Fill in the missing information assuming that market price is $24.

Q         FC       TC      MC     ATC               MR                 TR                  Profit

0          105      105      N/A     N/A

1          105      135      30        135   

2          105      160      25        80

3          105      180      20        60

4          105      195      15        48.75   

5          105      215      20        43

6          105      250      35        41.67   

7          105      295      45        42.14   

8          105      355      60        44.375   

2. What is the profit maximizing (or loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output – the firm can produce two people eaters or three people eaters, but not 2.5 or 3.75 people-eaters.)

3. We usually say that the competitive firm maximizes profits by choosing the output level that makes MC=MR – but that isn’t exactly true here at the optimal level of people-eater output. Why not?

4. What is the break-even price for this firm?

5. At the profit-maximizing level of output, does this firm achieve productive efficiency? How do you know?

6. If this firm is a rational, profit-maximizing firm, what level of output will it produce?

1) Suppose inverse demand equation, P = 14 - Q, and marginal revenue, MR = 14 -2Q, and marginal cost, MC = 2 + Q. The price that the profit maximizing monopolist sets is $_ per unit. ____

2) Suppose inverse demand equation, P = 14 - Q, and marginal revenue, MR = 14 -2Q, and marginal cost, MC = 2 + Q. What quantity does a profit maximizing monopolist produce? _____

A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist maximizes profit at the point where marginal revenue exceeds marginal cost.

true or false

Price discrimination is a rational strategy for a profit-maximizing monopolist when there is no opportunity for customers to engage in arbitrage across market segmentations

true or false

When regulating a monopoly with average cost pricing, the monopoly is able to enjoy a zero economic profit and the deadweight loss of an unregulated monopoly is eliminated.

true or false

You want to know the percentage of utility companies that earned revenue less than 39 million or more than 81 million dollars. If the mean revenue was 60 million dollars and the data has a standard deviation of 13 million, find the percentage. Assume that the distribution is normal. Round your answer to the nearest hundredth.

Use the product rule to explain two different situations where price and marginal revenue can be very different

Unoccupied seats on flights cause airlines to lose revenue. Suppose a large airline wants to determine of the mean number of unoccupied seats on all its flights is greater than 10. To accomplish this, the records of 60 flights are randomly selected and the number of unoccupied seats is noted for each of the sampled flights. The sample mean is 11.4 seats and the sample standard deviation is 3.4 seats. Test the claim that mean number of unoccupied seats on all its flights is greater than 10 at the 5% significance level.