all firms in a competitive industry have the following long-run total cost curve: C(q) = q³ -10q² +36q, where q is the output of the firm

a. Find the price in the market and how many units each firm will sell in the long run

b. If the market demand was Q = 10p-5, how much output will be bought and sold in the market?

c. How many firms will exist in the long run?

d. What is their economic profit?

e. Suppose the market demand shifted right due to a shock (the supply/costs did not change). If the new market demand is Q=20p-25, how many firms would be in the market after the long run adjustment?

What factors do you think are important when developing a total cost model? What do you think might be the greatest barriers to developing a total cost of ownership measurement system?

The perfectly competitive golfball industry consists of 100 golfball-producing firms with the short-run total cost function ST C=q2+ 20q+ 200−N, where q represents the number of pallets of golfballs produced per day and N represents the number of firms in the industry. Firm marginal cost function is M C= 2q+ 20.

- Find the long-run equilibrium price of a pallet of golfballs, the number of pallets produced by each firm in equilibrium, firm profit, and the market quantity of pallets bought and sold in equilibrium.

- Suppose that the price of golf clubs, a complementary good, decreases, causing a demand increase in the golfball market. Suppose 19 new firms enter the industry in the long run,and that the market subsequently returns to long-run equilibrium. Find the new long-run market equilibrium price and quantity, and the number of pallets produced by each firm. How much profit do firms earn?

1. During January, AA sold 20 units at $30 per unit.

Under FIFO, how much is the Gross Profit?

$365

$380

$390

$395

2. During January, AA sold 20 units at $30 per unit
Under the Weighted Average Method, how much is the Gross Profit?.

$365

$380

$395

$400

3. During January, AA sold 20 units at $30 per unit.

Under FIFO, how much is the Cost of Goods Sold?

$205

$235

$260

$290

4. During January, AA sold 20 units at $30 per unit.

Under FIFO, how much is the value of ending inventory?

$205

$235

$260

$290

5. During January, AA sold 20 units at $30 per unit.

How much is the value of ending inventory under the Weighted Average Method?

$195

$220

$275

$300

6. During January, AA sold 20 units at $30 per unit.

Under LIFO, how much is the Cost of Goods Sold?

$205

$235

$260

$290

What is the total raw materials budget variance. Choose 2 answers Units =60,000 Standard Cost Usage Steel $10.00/lb 7.2 oz/unit Plastic $4.00/lb 2.6 oz/unit Actual Cost Usage Steel $10.70/lb 6.9 oz/unit Plastic $3.70/lb 3.1 oz/unit (10 total points) Must get both answers correct to get 4 points

HBR: UPS and HP: Value Creation Through Supply Chain Partnerships

1. Total cost structures that promote relational flexibility and the development of cross- functional process capabilities; and,
2. Trust and risk-sharing that promotes collaboration and the sharing of gains and losses.

HBR: UPS and HP: Value Creation Through Supply Chain Partnerships

1. Total cost structures that promote relational flexibility and the development of cross- functional process capabilities.

2. Trust and risk-sharing that promotes collaboration and the sharing of gains and losses.

Special Order
Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity.

Notes:
1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction thereof until a maximum capacity of 10,000 units is reached.
2. Selling expenses consist of a 6% sales commission and shipping costs of 80 cents per unit. Glendale pays only three-fourths of the regular sales commission on sales totaling 501 to 1,000 units and only two-thirds the regular commission on sales totaling 1,000 units or more.

Glendale's sales manager has received a special order for 1,200 units from a large discount chain at a price of $36 each, F.O.B. factory. The controller's office has furnished the following additional cost data related to the special order:

1. Changes in the product's design will reduce direct material costs $1.50 per unit.
2. Special processing will add 20% to the per-unit direct labor costs.
3. Variable overhead will continue at the same proportion of direct labor costs.
4. Other costs should not be affected.

a. Present an analysis supporting a decision to accept or reject the special order. (Round computations to the nearest cent.)

b. What is the lowest price Glendale could receive and still make a profit of $3,600 before income taxes on the special order?

Round answer to two decimal places, if applicable.

$Answer

Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March.

Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)