Nick owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water:
| Cost of first bottle: | $1 |
| Cost of second bottle: | $4 |
| Cost of third bottle: | $7 |
| Cost of fourth bottle: | $9 |
From this information, complete the following table by deriving Nick's supply schedule.
Price | Quantity Supplied |
|---|---|
| More than $9 | |
| $7 to $9 | |
| $4 to $7 | |
| $1 to $4 | |
| $1 or less |
Based on Nick's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0).
Nick's SupplyPrice = $5Quantity SoldProducer Surplus012345109876543210Price of WaterQuantity of Water
Suppose the price of a bottle of water is $5.
Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Nick will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Nick's producer surplus.
In this case, Nick receives $____ in producer surplus from his water sales.
If the price rises to $8, Nick now sells ____ bottles of water. This increases / decreases his producer surplus to $____.
In: Economics
Please answer questions 2 through 7
1. A deli raises the price of its deluxe cheeseburger from $9.50 to $10.50. The quantity sold falls from 125/day to 100/day. Calculate the arc price elasticity of demand.
2. Given your answer to (1), and given that the marginal cost of is $5, should the restaurant raise or lower its price of its deluxe cheeseburger to increase profits?
3. AutoClean does car detailing for $80 per car. Market research indicates that if the price was increased to $105 quantity demanded would fall to zero. Assuming that demand can be modeled with a linear demand curve, estimate the price elasticity of demand at $80.
4. The only thing that changes in Dullsville is the price of a stay at the Dullsville Inn. You've collected the following data on the rates charged (for a suite with 2 queen-sized beds and 'free' continental breakfast) and the number of rooms occupied. The Inn has 100 suites, and at no time were potential visitors turned away due to no vacancy. Use this data to estimate a 'constant elasticity' demand function. Estimate the price elasticity of demand.
Observation Rate per night Quantity (rooms rented)
1 $70 40
2 $65 50
3 $80 30
4 $52 62
5 $92 31
6 $64 41
7 $43 78
8 $74 35
9 $83 33
10 $54 52
11 $87 30
12 $84 28
13 $68 40
14 $43 69
15 $48 53
16 $78 34
17 $72 48
18 $58 53
19 $56 59
5 - 7. Next door to the Dullsville Inn is the Vagabond Hotel. Their rate for a single room is $50/night, with an average of 60 rooms occupied per night. Assume that the industry norm for the price elasticity of demand for hotels like the Vagabond Hotel is -1.6. Further assume that the demand function is reasonably approximated with a constant-price elasticity of demand functional form: Q = aP^b, where b is the price elasticity of demand.
5. Use the above information to calculate the value for 'a.'
6. Use the resulting demand function to estimate the number of rooms occupied if the price was increased to $60/night.
7. The marginal cost of providing a room at the Vagabond Hotel is $20. Use the markup rule for profit maximization to calculate the profit maximizing rate.
In: Economics
1. Enter user name. 2. Enter test scores. 3. Display average. 4. Display summary. 5. Quit. Selection:
c++ please
for while do while
In: Computer Science
Mr Alfred gets a note from a client called Tony’s Technologies. On behalf of Tony’s Technologies, Mr Alfred maintains their perpetual inventory recording system using the FIFO (First In First Out) cost assignment method. The note advises that during August 2020 the following transactions occurred relating to the ‘Benk Computer Monitor’.
|
Feb. 1 |
Balance of inventory - 52 Benk Computer Monitors, cost price is $105 each |
|
4 |
Credit sale of 25 units to Greenvale Secondary School (Invoice H72). Selling price $215. |
|
9 |
Cash sale of 1 unit to Jarrod Sanders (Receipt V51). Selling price $215. |
|
13 |
Purchase of 45 units at $110 each (plus GST) from Keji Ltd (Invoice S21). |
|
19 |
Credit sale of 23 units to Mt Alexander Village (Invoice H91). Selling price $245. |
|
20 |
Tony used 2 units as gifts to his two cousins (Memo 13). Selling price $215. |
|
24 |
40 units purchased from Keji Ltd for $4 620 including GST (Invoice S87). |
|
28 |
Tony decided to use 2 units as part of a trade display at a computer fair (Memo 14). Selling price $215. |
Required:
Rule up a perpetual stock record card for the Benk Compute Monitor and record the above transactions on the stock record card using the perpetual inventory recording system and FIFO (First in First Out) cost assignment method.
After you have finished preparing the stock record card, Mr Albert arrives, and tells you he has shocking news. The news is that the net realisable value of each item is $107.
Required:
Calculate the stock write down and prepare the general journal entry to adjust inventory records, if required. You are not required to update this on the stock card. Show all workings.
You and Mr Albert’s assistant start to discuss the job Mr Albert has just given you. Mr Albert’s assistant remarks that she sees no difference between LIFO and FIFO.
Required:
Explain the different impacts on the Income Statement and the Balance Sheet of maintaining a perpetual recording system and the FIFO cost flow assignment as against the LIFO cost flow assignment during a period of cost prices decreasing.
In: Accounting
Suppose you get cast on the next season of Project Runway and you are about to begin your first design challenge. Tim Gunn gives you a budget of m = $40 to spend on yards of fabric (x) and spools of thread (y) at Mood (fabric store). The price of a yard of fabric is px and the price of a spool of thread is py.
(a) For the particular Project Runway episode, you must only buy fabrics and thread that cost px = $8 and py = $4, respectively. Graph your budget constraint and be sure to show your calculations. (4 points)
(b) Tim Gunn decides to make a twist! You still must only buy fabrics and thread that costpx = $8 and py = $4, but now Tim is giving you $20 worth of thread for free. Graph your budget constraint and be sure to show your calculations. (5 points)
(c) You have made it past the first round of elimination. Now you are back at Mood shopping for fabric and thread for the next challenge. Today, Mood is having a sale on fabric! The price of a spool of thread is still py = $4. The first 3 yards of fabric is $8 per yard, but then each yard purchased after that costs $2 per yard. Graph your budget constraint and be sure to show your calculations. (5 points)
In: Economics
Garcia Company issues 10%, 15-year bonds with a par value of
$250,000 and semiannual interest payments. On the issue date, the
annual market rate for these bonds is 8%, which implies a selling
price of 117 1⁄4. The effective interest method is used to allocate
interest expense.
1. Using the implied selling price of 117 1⁄4,
what are the issuer's cash proceeds from issuance of these
bonds?
2. What total amount of bond interest expense will
be recognized over the life of these bonds?
3. What amount of bond interest expense is
recorded on the first interest payment date?
------
Enviro Company issues 10.00%, 10-year bonds with a par value of
$420,000 and semiannual interest payments. On the issue date, the
annual market rate for these bonds is 7.00%, which implies a
selling price of 127.625. The straight-line method is used to
allocate interest expense.
1. Using the implied selling price of 127.625.
what are the issuer’s cash proceeds from issuance of these
bonds?
2. What total amount of bond interest expense will
be recognized over the life of these bonds?
3. What is the amount of bond interest expense
recorded on the first interest payment date?
In: Accounting
At the beginning of the first year, the Olympic company issued
10,000 stock options to an executive at an exercise price of US $
45 (convertible to 10,000 ordinary shares), provided that the
executive met the performance requirements and served for 3 years.
On the grant date, the estimated fair value of the stock option
with an exercise price of $ 45 is $ 15. If the exercise price is $
25, the estimated fair value of the option is $ 31. If the revenue
of the Olympic company grows at an average annual rate of 15%
within three years, the execution price will be reduced to $
25.
In the first year, the company's earnings increased by 16%, and it
is expected to continue to grow at this rate in the next two years.
In the second year, the company's profit increased by only 3%, the
company does not expect the profit target to be achieved. In the
third year, the company's earnings increased by 4%. The supervisor
completed three years of service and therefore met the performance
requirements.
Required:
a) Prepare journal entries for Year 1 to Year 3 relating to compensation expense.
b) The executive exercised half of the share options on 3 January of Year 4. The executive did not exercise the remaining share options and the right is lapsed in Year 4. Prepare all journal entries for Year 4 relating to the share options.
In: Accounting
The scenic company is about to launch a new product. The test market results indicate that potential customers like the new product. Based on extensive research the following estimates have been developed for the first 3 years. These estimates are for the market as a whole. During year 1 you will be the only firm in the market:
Year 1 Year 2 Year 3
Price Volume Volume Volume
$10 30,000 50,000 80,000
$14 20,000 35,000 50,000
$18 10,000 15,000 20,000
$22 5,000 10,000 15,000
Assume that the estimated direct cost of building the first unit is $12 and that a 95% experience rate will occur. If you set the price at $10, competition will not enter until year 3 and will take 30,000 units in that year. If you price at $14, competition will enter in year 2 and take away 5,000 units in year 2 and 25,000 units in year 3. If you set the price at $18 or $22 competition will enter in year 2 and they will take away half of the units in each of those years. What would be the total contribution to profits over the 3 year period for each of these pricing options. Show all of your work.
In: Operations Management
The payback of a project is the number of years it takes before the project’s total cash flow is positive. Payback ignores the time value of money. It is interesting, however, to see how differing assumptions on project growth impact payback. Suppose, for example, that a project requires a $300 million investment at year 0 (right now). The project yields cash flows for 10 years. The annual cash flow growth is assumed to be 15% per year. Assume that this growth is the same each year. The first year’s cash flow will be between $30 million and $100 million: {$30 million, $40 million, $50 million, $60 million, $70 million, · · · , $100 million}. Compute the project payback year as a function of the year 1 cash flow. PRovide answers in a spreadsheet model.
In: Finance
A company is formed by issuing common stock for $1,000 in cash and then transacts as follows over its first five days of business, with all purchases and sales on credit:
Day 1 - Buys one unit of inventory for $10.
Day 2 - Buys one unit of inventory for $15.
Day 3 - Buys one unit of inventory for $20.
Day 4 - Sells one unit of inventory for $100.
Day 5 - Sells two units of inventory for $100 each.
Prepare in simplified form a balance sheet, assuming that the company uses FIFO and then, alternatively, that it uses LIFO.
Assets: EoD4: FIFO? EoD4 LIFO?
Total Assets: EoD4: FIFO? EoD4 LIFO?
Liabilies and Stockholders Equity: EoD4: FIFO? EoD4 LIFO?
Total Liabilities and Stockholders Equity: EoD4: FIFO? EoD4 LIFO?
In: Accounting