What does yield/revenue management entail? What types of businesses, besides hotels and airlines, would benefit from revenue management? As a consumer, how do you view the practice?
Describe the output of aggregate planning. When is aggregate planning most useful?
Explain three alternatives for adjusting capacity and two alternatives for managing demand. Give relevant industry examples as to when these are best (or least) utilized to make your point.
In: Operations Management
Professor Bong has just written the first textbook in Punk Economics. It is called Up Your Isoquant.
Market research suggests that the demand curve for this book will be
D(p) = 2,000 - 100p,
where p is its price.
(a) Notice that the demand curve given above has quantity as a function of price. So, begin by rearranging that equation to get price as a function of quantity. (This is known as the inverse demand function.)
(b) The total revenue function for Professor Bong's book is _______ and the marginal revenue function is MR(y)= _______ - y/50
Now, some information on the costs of production. It will cost $1,000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $4 per book for every book printed.
(c) The total cost function for producing Professor Bong's book is C(y) = 4y +_______ and the marginal cost function is MC = _______
(d) Look at the marginal revenue function you found it part (b), and the marginal cost function you found in part (c). Set marginal revenue equal to marginal cost to find the profit-maximizing quantity of books for professor Bong to sell:
In: Economics
A company reported the following accounts in its unadjusted trial balance at December 31, 2020: Dividends ................... $ 14,000 Income Tax Expense .......... $ 25,000 Salaries Expense ............ $ 31,000 Rental Revenue .............. $ 33,000 Cash ........................ $ 36,000 Supplies .................... $ 37,000 Cost of Goods Sold .......... $ 52,000 Unearned Revenue ............ $ 54,000 Accounts Receivable ......... $ 57,000 Land ........................ $ 69,000 Accounts Payable ............ $ 76,000 Trademark ................... $ 88,000 Inventory ................... $ 91,000 Retained Earnings ........... $ 95,000 (at January 1, 2020)Sales Revenue ............... $119,000 Common Stock ................ $123,000 The Company needs to record adjusting entries at December 31, 2020 related to the following three items: 1) A utility bill totaling $16,000 was received in late December. The Company expects to pay the bill in January, 2021. 2) A physical count revealed that supplies costing $15,000 were still on hand as of December 31, 2020. 3) The unearned revenue relates to a $54,000 payment received on July 1, 2020. The payment was from a customer who paid the company for services to be provided each month for 18 months, beginning on July 1, 2020. Calculate Company's total liabilities at December 31, 2020 afterthe appropriate adjusting entries have been recorded and posted.
In: Accounting
A16-8 Tax Calculations:
Penguin Corp. reported accounting earnings before taxes as follows: 20X6, $675,000; 20X7, $57,000. Taxable income for each year would have been the same as pre-tax accounting income except for the tax effects, arising for the first time in 20X6, of $7,200 in rent revenue, representing $1,200 per month rent revenue collected in advance on 1 October 20X6, for the six months ending 31 March 20X7. Rent revenue is taxable in the year collected. The tax rate for 20X6 and 20X7 is 25%, and the year-end for both accounting and tax purposes is 31 December. The rent revenue collected in advance is the only difference between accounting earnings and taxable income, and it is not repeated in October 20X7.
Required:
Is this a temporary difference? Why, or why not?
What is the accounting carrying value for the unearned rent at the end of 20X6? The tax basis? Explain.
Calculate taxable income and income tax payable, and prepare journal entries for each year-end.
Prepare a partial statement of profit and loss for each year, starting with pre-tax accounting earnings.
What amount of deferred income tax would be reported on the 20X6 and 20X7 statements of financial position?
In: Finance
Note: don't copy paste answer again and again its my 3rd attempt and each time same picture of answers uploaded i need the actual answers of the following question
Problem:
Suppose that the demand for Cod Liver Oil (CLO) can be written QD =5000-2P (so, the inverse demand curve for CLO is P=2500-0.5QD), where P is the price per ton (in dollars) of CLO and QD is the quantity demanded (in tons) in a period.
In: Economics
QUESTION 13
In the short run, a perfectly competitive firm will stay in business as long as:
|
Price equals average revenue. |
||
|
marginal revenue is greater than marginal cost. |
||
|
price exceeds average variable cost. |
||
|
price is less than average variable cost. |
QUESTION 14
Suppose that price is below the minimum average total cost (ATC) but above the minimum average variable cost (AVC), and the market price is expected to rise at least to ATC in the near future. In the short run, a firm that is a price taker would:
|
immediately shut down and get out of the industry. |
||
|
continue to produce a quantity such that marginal revenue equals marginal cost. |
||
|
shut down temporarily, in hopes of restarting in the near future. |
||
|
cut price and expand output in hopes of achieving economies of scale |
QUESTION 15
Where is the "short-run shut down point" for a perfectly competitive firm?
|
The lowest point of AVC curve. |
||
|
The lowest point of ATC curve. |
||
|
The lowest point of MC curve. |
||
|
It depends. Could be the lowest point of AVC, ATC, or MC curve. |
QUESTION 16
The marginal revenue for a price taker is
|
equal to price. |
||
|
less than price. |
||
|
more tha price. |
||
|
unrelated to price. |
In: Economics
1) Consider a monopoly that mines a very rare precious stone. Draw a graph of the demand curve for this stone and the monopolist’s marginal-revenue curve (MR). Next, draw the monopolist’s marginal-cost curve (MC) and average-total-cost curve (ATC). A monopolist maximizes profit by producing the quantity at which marginal cost equals marginal revenue. Indicate this point on the graph by labeling it A. Finally, label the monopoly price and the profit-maximizing quantity.
2) Consider a monopoly that produces a patented medical device. Draw a graph of the demand curve for this device and the monopolist’s marginal-revenue curve (MR). Next, draw the monopolist’s marginal-cost curve (MC) and average-total-cost curve (ATC).
Label the monopoly price and the profit-maximizing quantity. Next, indicate the area on the graph representing the monopolist’s profi
3) Consider a monopoly that produces one-of-a-kind sculptures. Draw a graph of the demand curve for these works of art and the monopolist’s marginal-revenue curve (MR). Next, draw the monopolist’s marginal-cost curve (MC).
Label the monopoly price and monopoly quantity. Next, indicate the efficient quantity in this market. Finally, shade the area that represents deadweight loss (DWL).
In: Economics
For each of the following, evaluate if it is a good argument. Provide reasons for why or why not.
16. Tax. Jane is doing an income tax return. There are two different methods of determining some revenues. If method A is used her taxable income will be $50,000. If method B is used, her taxable income will be $56,000. Jane thinks that she better chooses method A.
17. Taxi driver. King is a taxi driver working for a yellow cab company in a developing country. Mostly, the drivers take cash and receipts are not issued. Only King knows how much revenue is generated from fares. King’s wage is 30% of the reported fare revenue. Whatever revenue he reports, he has to turn in that amount to the company first. To maximize his wages, King believes that he wants to over-report the fare revenue to the company.
18. Saved money? We were looking for a three bedroom house. We were three people. Our budget was $ $240,000 ($80,000 per bedroom). We actually paid $220,000 for a three bedroom house. Soon after, one of us left for another state, and one bedroom is empty. We saved $20,000, and it is good news for us.
In: Economics
|
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,760,000. The project was begun in 2015 and completed in 2016. Cost and other data are presented below: |
| 2015 | 2016 | ||
| Costs incurred during the year | $ 399,000 | $1,060,000 | |
| Estimated costs to complete | 931,000 | 0 | |
| Billings during the year | 485,000 | 1,330,000 | |
| Cash collections during the year | 385,000 | 1,430,000 | |
Required information
|
Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. |
| Required: |
| Compute the amount of gross profit recognized during 2015 and 2016. |
13.Required information
|
Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. |
| Required: |
|
Prepare all journal entries to record costs, billings, collections, and profit recognition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
14.Required information
|
Assume that Beavis recognizes revenue upon completion of the project. |
| Required: |
|
Compute the amount of gross profit recognized during 2015 and 2016. |
15.Required information
|
Assume that Beavis recognizes revenue upon completion of the project. |
| Required: |
|
Prepare all journal entries to record costs, billings, collections, and profit recognition. |
In: Accounting
A smaller profit would be a deterrent for businesses in increasing the minimum wage if the new minimum wage is too costly for the business. If a business's profit is insufficient to support its owners, the business is unsuccessful and will likely go under. If those same business owners could make more money, or a greater profit, on a different business venture or as employees themselves, then they will likely do that instead. In economics, profit is considered total revenue - totals costs, where revenue = price x quantity. Costs are either considered explicit (things like wages, rent, etc.) or implicit (typically in the form of personal resources from the business owner). Accounting profit is just total revenue - total explicit costs, but economic profit is total revenue - both explicit and implicit costs, giving a more accurate picture of total profit. Taking both costs into account is a better determinate of the success of a business rather than just looking at explicit costs. If a business owner uses economic profit to analyze their actual profit, rather than accounting profit, they'll be more likely to accurately depict their longevity, therefore creating a space for shareholders to profit and potentially adding a beneficial good to the market for the long term. if you agree, and why
In: Economics