3. The marketing research department for a company that manufacturers and sells notebook computers established the following revenue and cost functions:
R(x) = x(2000 – 60x)
C(x) = 4000 + 500x,
where x is thousands of computers, and R(x) and C(x) are in thousands of dollars. Both
functions have the domain 1 ≤ x ≤ 25.
(1) Form a profit function P, and graph R, C, and P in the same rectangular coordinate system.
(2) Discuss the relationship between the intersection points of the graphs of R and C and the x intercepts of P.
(3) Find the x intercepts of P to the nearest hundred computers. Find the break-even points.
(4) Refer to the graph drawn in part (1). Does the maximum profit appear to occur at the same output level as the maximum revenue? Are the maximum profit and maximum revenue equal? Explain.  

Elasticity a. Use two diagrams (one for Alberta, one for the world) to explain why the following might be true: A drought around the world raises the total revenue that farmers received from the sale of grain, but a drought only in Albert reduces the total revenue that Alberta farmers receive.

b. You have the following information about good X and good Y: • Income elasticity of demand for good X: -3 • Cross-price elasticity of demand for good X with respect to the price of good Y: 2 Would an increase in income and a decrease in the price of good Y unambiguously decrease the demand for good X? Why or why not?

c. A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain

Bensen Company began operations when it acquired $26,800 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,800 that had a $4,400 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $3,400 cash. Bensen uses straight-line depreciation. 2018 2019 2020 2021 2022 Revenue $7,470 $7,970 $8,170 $6,970 $0

Required

Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)

5.  A monopoly company faces the demand curve given by the equation P = 300 - 2Q. Its production process is characterized by the total cost function TC=4Q2. The company charges a single price in the market.
a. What is the marginal cost (as a function of output Q)?

b. What is the total revenue (as a function of output Q)?

c. What is the marginal revenue (as a function of output Q)?

d. What levels of output and price would maximize total revenue of the firm?

e. Now calculate profit-maximizing output, price, and the maximum profit of the company. Illustrate your solution graphically.

f. If a $500 lump-sum tax is levied on this firm, what will be the output and price of its product, and the firm’s profit?

g. If a $60 excise (per unit) tax is levied on the product of the company, how much will the monopolist produce, what price will be charged, and what profit will be made?

A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $216. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $210 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $200 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Required: 1. How much revenue should Manhattan Today recognize upon receipt of the $210 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 15 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.

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In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

Steps please..

Bensen Company began operations when it acquired $60,000 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $50,000 that had a $10,000 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $8,800 cash. Bensen uses straight-line depreciation. 2018 2019 2020 2021 2022 Revenue $ 26,100 $ 28,500 $ 32,000 $ 31,300 $ 0 Required Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)

KPNG Consulting has five projects to consider. Each will require time in the next four quarters according to the table below

Revenue from each project is also shown. Develop a model whose solution would maximize revenue, meet the time budget of: 28 in the 1st quarter, 20 in the 2nd quarter, 18 in the 3rd quarter and 16 in the 4th quarter; at least three projects; and not do both projects C and D. If project B is chosen, project D must be chosen.

On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1, 2016, the market rate was 8%.

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. a) Calculate price elasticity of demand (using the point elasticity formula) at the following amounts of CLO along this demand curve: QD=4000, QD =2500, QD =1000. b) Calculate total revenue from sales in this market at QD =2500. Show your work please. d) Assume that demand will decrease based on a parallel shift of the demand curve. Explain what will happen to elasticity at QD=2500 (will it increase or decrease and why?). What will happen to total revenue at this quantity (will it increase or decrease and why?). Will the maximum total revenue for the market be achieved at a greater or a smaller quantity than QD=2500?