You are currently working as a Senior Economist for the Congressional Budget Office in Washington DC making $108,000 per year. Your lifelong ambition, however, has been to open your own cupcake store. You decide to quit your job as an economist to open your dream store near the River Walk in San Antonio. You estimate that you will be able to sell 10,000 cupcakes per month at a price of $3.40 per cupcake. You will have to pay monthly rent of $5,000 for renting the retail space and will have other cash costs of $2,500 per month (utilities etc.). The ingredients will cost you $2.00 per cupcake.

1. (3 points) Calculate monthly accounting profits

2. (3 points) Calculate monthly economic profits

3. (3 points) Would an economist recommend that you start this business? Why or Why not?

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $160,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $20 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $23,300 $32,900 $19,700 $700 Materials requisitioned 19,800 20,800 12,900 15,200 Direct labor cost 10,900 17,900 7,550 6,100 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 120 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.

Required: 1. Calculate the balance in Work in Process as of June 30. $

2. Calculate the balance in Finished Goods as of June 30. $

3. Calculate the cost of goods sold for June. $

4. Calculate the price charged for Job 39. Round your answer to the nearest cent. $

Canadian Solar (NASDAQ: CSIQ) and other solar panel manufacturers are facing a shortage of a key raw material used in the production of solar panels, polysilicon. Environmental regulators in China shut down several factories, triggering the shortage. The cost of polysilicon has risen by as much as 35% in the past several months. A kilogram of polysilicon went from $14 to $19 near the end of 2017.

In addition to the rise in the cost of polysilicon, the selling price of solar panels has been falling throughout the world.

Assignment:

You are a financial officer of Canadian Solar. The company president has asked you for information on the three specific topics below. In a memo format the questions that were asked and at least one more financial ratio/tool that would be impacted by these changes.

Begin you memo by briefly restating the request that was made. This will help define the scope of the assignment. Your one additional ratio should come after you have covered the requested material.

1. What would be the impact of the increase in the cost of the polysilicon on Canadian Solar’s gross profit? Explain.

2. What would be the impact of the decrease in the selling price of solar panels on Canadian Solar’s gross margin? Explain.

3. Assume that Canadian Solar uses a standard costing system for tracking the production of its solar panels. What variance(s), if any, have been impacted by the increase in the cost of polysilicon? Explain

Chapter 6 Homework

Required information

Exercise 6A-2 Least-Squares Regression [LO6-11]

[The following information applies to the questions displayed below.]

Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:

Exercise 6A-2 Part 2

2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round your Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.)

Required information

Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11]

[The following information applies to the questions displayed below.]

Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:

Exercise 5A-2 Part 2 (Algo)

2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.)

My IDE : NETBEAN JAVA

THANK YOU SO MUCH ( THE QUESTION IS ON SPECIFICATION)

Sample Run

Department Store Sales Tax and Grand Total Application

Data Entries: Enter 0 to end your input
Cost of item: 35.99
Cost of item: 27.50
Cost of item: 19.59
Cost of item: 0
All items total: $83.08

Sales tax rate (%): 6
Promotion code: 123

Discount amount: $1.00
Subtotal: $82.08
Sales tax amount: $4.92
Grand total: $87.00

Continue? y/Y/n/N: y

Data Entries: Enter 0 to end your input
Cost of item: 10.99
Cost of item: 35.50
Cost of item: 11.52
Cost of item: 21.58
Cost of item: 0
All items total: $79.59

Sales tax rate (%): 12
Tax rate should be from 6 to 10
Sales tax rate (%): 9
Promotion code: 456

Discount amount: $2.00
Subtotal: $77.59
Sales tax amount: $6.98
Grand total: $84.57

Continue? y/Y/n/N: y

Data Entries: Enter 0 to end your input
Cost of item: 95.21
Cost of item: 0
All items total: $95.21

Sales tax rate (%): 10
Promotion code: 999
Invalid promotion code. Try again
Promotion code: 789

Discount amount: $3.00
Subtotal: $92.21
Sales tax amount: $9.22
Grand total: $101.43

Continue? y/Y/n/N: Y

Data Entries: Enter 0 to end your input
Cost of item: 152.50
Cost of item: 59.80
Cost of item: 0
All items total: $212.30

Sales tax rate (%): 8

Discount amount: $21.23
Subtotal: $191.07
Sales tax amount: $15.29
Grand total: $206.36

Continue? y/Y/n/N: N

Program is terminated

Specifications

• The sales tax rate is from 6% to 10%.
• The system accepts only the following promotion codes for a discount amount:
  • 123 ($1 discount)
  • 456 ($2 discount)
  • 789 ($3 discount)
  • 0 (no discount)
• If the all items total is $100 or more, the discount amount is 10% of the total. No other discounts are applied.
• The methods should round the results to a maximum of two decimal places. The subtotal, the sales tax amount, and the grand total are calculated as follows:
  • subtotal = all items total - discount amount
  • sales tax amount = subtotal * (sales tax rate / 100)
  • grand total = subtotal + sales tax amount
• Store the code that gets user inputs and displays outputs in the main method.
• Your project should contain one main class that defines the following static methods:
  • main()
  • getDiscount()
  • getItemsTotal()
  • getSalesTax()

Explain the firm’s behavior in general based on a rigorous model which we have constructed so far through this course (2 pages: 25 points) "the firm" in economics is referring to the theory of the firm this question asks to explain the behavior of the firm to include the following concepts:

Production Function, Isocost lines, Isoquants, adjustment of capital, Long run, Short run, total product of labor, average product of labor, marginal product of labor, marginal product of capital, ,marginal rate of technical substitution, upper ridge line, lower ridge line, cost minimizing point (input combination), long-run expansion path, short-run expansion path, total cost curve, total variable cost curve, fixed cost, short run average cost curve, average variable cost curve, short run marginal cost curve, long run total cost curve, long run marginal cost curve, long run average cost curve, market price of commodity, total revenue, total profit, marginal profit, profit maximizing price and quantity, demand curve of perfect competitive firm in the short run/long run, abnormal profit, entry of other competitors for abnormal profit, demand curve and marginal revenue curve to monopolist, monopoly price and output

Sebastian Muffler, Inc. operates an automobile service facility. The table below shows the cost incurred during a month when 400 mufflers were replaced.

Required:

Fill in the missing amounts, labeled A through O, in the table above. (Round your answer to 2 decimal places.)

Sebastian Muffler, Inc. operates an automobile service facility. The table below shows the cost incurred during a month when 400 mufflers were replaced.

Required:

Fill in the missing amounts, labeled A through O, in the table above. (Round your answer to 2 decimal places.)

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 13,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 11,000, 13,000, and 15,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.