Assume a firm with the following

Demand Curve:         P = 9,000 – 10Q
Total Cost Curve:       TC = 600,000 + 5Q2

   •   What is the Profit-Maximizing Price and Quantity this firm will use? Show work
   •   Is the firm making a profit or a loss? Explain why
   •   Should the firm stay in business or quit immediately? Explain why

   •   Assume a Total Cost Function of TC = 6455 + 5.3Q + 4.27Q2

   •   Compute the Total Fixed Cost if Q = 10. Show work
   •   Compute the Marginal Cost if Q = 10. Show work.
   •   Compute the Average Total Cost if Q = 10. Show work.
   •   Compute the Average Fixed Cost if Q = 10. Show work.
   •   Compute the Average Variable Cost if Q = 10. Show work.

Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, cooking, is given below for May:

Materials are added at several stages during the cooking process, whereas labour and overhead costs are incurred uniformly. The company uses the weighted average cost method. The company combines labour and overhead into a single cost category—conversion cost.

Required:
Prepare a production report for the cooking department for May. Use the following three steps in preparing your report:

1. Prepare a quantity schedule and a computation of equivalent units.

2. Compute the costs per equivalent unit for the month. (Round your answers to 3 decimal places.)

3. Using the data from parts (1) and (2), prepare a cost reconciliation. (Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.)

Note: There is a difference of "$53" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for".

4. Prepare a production report for the cooking department for May. Assuming the company uses the FIFO method. Follow parts (1) to (3). (Leave no cells blank, enter "0" wherever required. Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.)

  
Quantity Schedule and Equivalent Units

Cost per Equivalent Unit

Cost Reconciliation

Note: There is a difference of "$53" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for".

Cost transferred out may 31 ____ ______ ____________ _______

Veritas is a startup that makes running t-shirts using high-tech fabric. The company has the following cost structure:

Total cost = $50,000 + ($25 × number of t-shirts)

Assume that 5,000 t-shirts are budgeted for the month of April. Calculate the total cost for the month of April.

Assume that 5,000 t-shirts are budgeted for the month of April. Calculate the total variable cost for the month of April.

Case Study #2

Background:
Nicky’s Carpet Cleaning Company

You run Nicky’s Carpet Cleaning Company which cleans carpets for commercial businesses. On average one carpet cleaner can clean six offices in a seven hour shift, Monday through Friday. You have 100 cleaners currently working for you, and they work 250 days per year. A recent analysis of the rework that must be done finds that, on average, one in every 6 carpets cleaned is not up to your standards. Because of Nicky’s “Satisfaction Guarantee” when a carpet does not meet the standards it is redone immediately at no extra cost to the customer.

The profit on cleaning each office is $25. You pay your cleaners $15 per hour. ($105 per day) When you have to re-clean a carpet you lose $20 in employee time.

Your training manager has done a needs assessment regarding this issue at your request and has identified the cause as being a lack of KSA’s. The training manager proposes a training program that he estimates will reduce the re-cleaning by 50%. The training would take 4 hours and they could train 25 employees per session. Training could therefore be completed for all 100 employees over two Saturdays, by running two four hour sessions on each Saturday.

Costs Associated With Training

Postage to mail out pre-training materials to all employees $300

20 days of training manager’s time for creation $3,200 of training program

Training Facilitator Costs ($325 per day) $650

Training Facility Rental
AV Equipment Rental for 2 Days ($1000 per day) $2,000 Refreshments for employees $600

Employee Wages (Nicky decides to conduct training on a $8000 Saturday and pay his employees an extra $5 per hour as
overtime) $20 per hour per employee

Cost of Facilitators Hotel Room/Expenses $600

Clerical Support to assist training manager in creating
Program- (20 hrs @ $10 per hr.) $200

External Consultant Fees associated with reviewing
Training Program created by training manager $800

Photocopying costs to produce brochure for all employees
with training information sent out prior to training. $200

Administrative support to prepare attendee lists/schedules $120 for training dates ( 10 hrs. @ $12 per hour)

Cost to purchase new LCD projector for training
department to share as old one no longer works $2000

$1000

Case Study Questions

1. In reviewing the related costs associated with the training program please identify which ones falls into the following categories:

   Development Costs, Direct Costs, Indirect Costs, Trainee Compensation, Overhead Costs

2. How much do the re-cleanings cost Nicky each year? Show all mathematical calculations.

3. After the training is complete, what is the estimated annual cost savings each year? Show all mathematical calculations.

4. What is the total cost of conducting the training?

5. If training was cancelled the day before, what would the training costs then be? (assume no cancellation fees would apply) Please list items, show related costs and provide a final total.

Please describe in terms of molecular motion and inter-chain attractive forces, the motion of polymer chains of a viscous polymer film as it is cooled at a constant rate as the sample moves through three temperature regimes:

a. Above Tg

b. Near or at Tg

c. Below Tg

Consider this opinion: "Interest rates have been generally declining for the past 30 years, and are near historical lows in the U.S. Therefore, there is nowhere for interest rates to go but up, which means you'd have to be nuts to invest in bonds!" What do you think?

A basketball player, standing near the basket to grab a rebound, jumps 66.9 cm vertically. How much time does the player spend in the top 14.2 cm of his jump?How much time does the player spend in the bottom 14.2 cm of the jump?

A basketball player, standing near the basket to grab a rebound, jumps 69.1 cm vertically. How much time does the player spend in the top 15.0 cm of his jump? How much time does the player spend in the bottom 15.0 cm of the jump?