As the manager of a business and thinking about changing the prices, of what is charged for your goods/services to increase your revenue and profits. Would you increase or decrease the prices one charge to increase the revenue. What are examples of specific goods or services?

What is the use of the concept of price elasticity of demand to answer this question fully?

QUESTION 5

5.1 List FIVE (5) requirements for perfect competition to exist.

5.2 Explain why any firm maximises profit, or minimises losses, when marginal cost is equal to marginal

revenue.

5.3 Explain the shape of the marginal revenue curve facing (a) a perfectly competitive firm and (b) a

monopolistic firm.

1. When the short-run marginal cost curve is upward-sloping,

The average total cost curve is upward-sloping

There are diseconomies of scale.

The average total cost curve is above the marginal cost curve.

Diminishing returns occurs with greater output.

2. Marginal revenue is the change in

Group of answer choices

Average revenue when output is changed.

Average revenue when price is changed.

Total revenue when output is changed.

Total revenue when price is changed.

3.The shutdown point occurs where price equals the minimum of

AFC.

MR.

AVC.

ATC.

4. Economic profit is the difference between

Accounting profit and explicit costs.

Accounting profits and external costs.

Total costs and total economic costs.

Total revenues and total economic costs.

5. If the equilibrium price in a perfectly competitive market for walnuts is $4.99 per pound, then an individual firm in this market can

Not sell additional walnuts unless the firm lowers its price.

Sell more only by increasing its advertising budget.

Sell an additional pound of walnuts at $4.99.

Not sell additional walnuts at any price because the market is at equilibrium.

6. Profit per unit is equal to

TR - ATC.

P - MR.

TR - TC.

P - ATC.

Winkler Furniture manufactures two different types of china cabinets: a French provincial model and a Danish Modern model. Each cabinet produced must go through three departments: carpentry, painting, and finishing. The table below contains all relevant information concerning production times per cabinet produced and production capacities for each operation per day, along with net revenue per unit produced. The firm has a contract with an Indiana distributor to produce a minimum of 300 of each cabinet per week (or 60 cabinets per day). Owner Bob Winkler would like to determine a product mix to maximize his daily revenue.

Formulate as an LP problem and obtain the revenue      

It’s July 1 and Joanna is just out of residency, with loans that she is able to pay off at a rate of $2000 per year. She has several job offers that would pay her $1000 a week, for jobs that she would like just as much as running her own office. But she has decided to open a clinic in her rural town and is about to sign a one-year lease for office space with rent of $800 a week; once Joanna signs the lease, she is obligated to pay the rent for the full year. She is able to see 60 patient visits a week working alone, but if she hires assistants, her clinic output can be greater, according to the chart below.

Her clinic receives $18 per visit, and the salary of an assistant is $500 per week.

a) Fill in the missing values for total weekly cost and incremental cost

b) Fill in the missing values for total weekly revenue and incremental revenue

c) Is she better off hiring one assistant or two assistants?

Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below:

Pin Cushion’s fixed costs total $38,500.

Required:

1. Determine Pin Cushion’s weighted-average unit contribution margin and weighted-average contribution margin ratio.

2. Calculate Pin Cushion’s break-even units and break-even sales revenue.

3. Calculate the number of units of each product that must be sold to break even.

4. Calculate the total sales necessary for Pin Cushion to earn a profit of $65,400.

5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $65,400.

6. Using the original information, calculate Pin Cushion’s degree of operating leverage.

Problem 16-1 (Algo) Single temporary difference originates each year for four years [LO16-2]

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%.

(Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020–2023.)

Required:
1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Break-Even Units and Sales Revenue: Margin of Safety

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,990,000 pages at a price of $0.06 each in the coming year. Product costs include:

There is no variable selling expense; fixed selling and administrative expenses total $42,000.

Required:

In your computations that involve the contribution margin ratio, do not round the ratio.

1. Calculate the break-even point in units.
fill in the blank 1 units

2. Calculate the break-even point in sales revenue.
$fill in the blank 2

3. Calculate the margin of safety in units for the coming year.
fill in the blank 3 units

4. Calculate the margin of safety in sales revenue for the coming year.
$fill in the blank 4

5. What if the total selling and administrative expenses are reduced to $26,020? Recalculate the following:

• 1
  Record 2016 income taxes.
• 2
  Record 2017 income taxes.
• 3
  Record 2018 income taxes.