Progressive Insurance offers mail-order automobile insurance to preferred-risk drivers in New York State. The company is the low-cost provider of insurance in this market with fixed costs of $20 million per year, plus variable costs of $500 for each driver insured on an annual basis. Annual demand and marginal revenue relations for the company are:

P = $1,500 - $0.005Q

MR = $1,500 - $0.01Q

How do you Graph the firm’s demand curve and marginal revenue curve in excel?

The following accounts and balances are taken from Moore Company's adjusted trial balance:

Accounts payable $9000

Accounts Receivable $2800

Accumulated depreciation $1200

Depreciation Expenses $1700

Dividends $2100

Insurance expense $2500

Intrest revenue $1440

Prepaid insurance $2120

Retained earnings $10000

Salary expenses $26100

Service revenue $38800

What is the ending balance in retained earnings after the closing entries are completed?

A. $7840

B. $40240

C. $9940

D. $17840

The following accounts and balances are taken from Moore Company's adjusted trial balance: Accounts Payable $ 11,000 Accounts Receivable 3,200 Accumulated Depreciation 1,600 Depreciation Expense 1,700 Dividends 2,100 Insurance Expense 2,200 Interest Revenue 1,440 Prepaid Insurance 2,220 Retained Earnings 10,400 Salary Expense 23,100 Service Revenue 35,800 What is the ending balance in Retained Earnings after the closing entries are completed?

A. $18,540

B.$8,140

C.$10,240

D.$ 37,240

Management is responsible for devising, executing, monitoring, and reporting on a complete financial plan for a business that focuses on the following: Profitability—ability to earn a satisfactory net income. Total Asset Management— use assets to maximize revenue. Liquidity—ability to pay bills when due and to meet unexpected needs for cash. Financial Risk – the risk involved in making a loan or investment. Operating Asset Management – using current assets and current liabilities in a way that supports revenue growth and minimizes investment.

True False

A company (the seller) provides software to customers for 8 years. In addition to the software, the company also provides the customer consulting services over the 8-year period. The total transaction price is $386,000. The company estimates the consulting services have a standalone value of $120,000 and the software license has a standalone value of $380,000. Assuming the performance obligations are separate, on the date the customer licensed the software, the company should record Unearned Service Revenue of $ . (If no Unearned Service Revenue should be recorded, then enter 0.)

Stella's Bakery calculated their net income to be $100,000 before any adjusting journal entries were recorded. What amount of net income will Stella's Bakery report after adjusting journal entries are recorded for the following transactions:

1. Record depreciation expense of $15,000
2. Earned $25,000 of rent revenue that was initially recorded as unearned revenue
3. Reclassified $10,000 of maintenance expense to a prepaid asset (represents prepaid maintenance coverage for the upcoming year)
4. Estimated bad debt expense of $10,000; there is no beginning allowance balance

A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed costs are $210,000 per year. The investment costs will be depreciated straight-line over the 9 year life of the store to a salvage value of zero. The opportunity cost of capital is 8% and the tax rate is 40%. sales revenue is $700,000 per year.

Using an operating cash flow of 118,688.89, calculate the Net Present Value. = -133574.24

Find the net present value break-even level of sales revenue?

The production costs, in $, per week of producing x widgets is given by C(x)=65000+4x+〖0.2x〗^2-〖0.00002x〗^3 and the demand function for the widgets is given by p=500-0.5x . Find the Marginal Revenue equation. Find the Marginal Cost equation. Find the Marginal Revenue and Marginal Cost for the firm when it is producing 300 widgets. Based on your numbers, would you advise the company to increase, decrease, or make no change to the level of production? Explain why.

3. a) What does an income elasticity of demand of +1.33 mean? b) Explain why the government potentially can raise more tax revenue if it applies a tax to a good with inelastic demand than if it applies the tax to a good with elastic demand? c) The Vice Chancellor of a university is concerned about increasing costs, and decides to raise tuition fees in an attempt to increase university revenue. Briefly explain (i.e. 2 or 3 sentences) whether you think this move will accomplish the Vice Chancellor’s objective.