A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you that the price elasticity of demand for his pizza is -2, and he asks you for advice. He wants to know two things. First, how many pizzas will he sell if he cuts his price by 10%? Second, how will his revenue be affected?
If he cuts his price by 10%, his sales will increase to ___ pizzas, and his total revenue will increase to $___.
In: Economics
At the end of the day, the cash register tape lists $881.40 as total income from services. Cash on hand consists of $18.25 in coins, $433.60 in currency, $100.00 in traveler's checks, and $427.00 in customers' checks. The amount of the Change Fund is $100.
Required:
Record the entry to record the day's cash revenue. If an amount box does not require an entry, leave it blank.
| GENERAL JOURNAL | PAGE | |||||
|---|---|---|---|---|---|---|
| DATE | DESCRIPTION | DOC. NO. | POST. REF. | DEBIT | CREDIT | |
| To record revenue earned during the day involving a cash shortage of $2.55. | ||||||
In: Accounting
On January 1, Mason sold 5,000 stereo systems for $3,000 each (cost $1,800). The stereo systems included an assurance-type warranty for the first year, and are estimated to cost $350 each. Mason also sold 2,000 optional extended coverage plans under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. Determine each of the following as of December 31:
A. Sales Revenue
B. Unearned Revenue
C. Warranty liability
D. Warranty expense
In: Accounting
5. Problems and Applications Q4
For each of the following characteristics, say whether it describes a monopoly firm, a monopolistically competitive firm, both, or neither. (Note: If the characteristic describes neither, leave the entire row unchecked.)
Characteristic | Monopoly | Monopolistically Competitive | |
|---|---|---|---|
| Faces the entry of new firms selling similar products | |||
| Produces at the minimum of average total cost in the long run | |||
| Equates marginal revenue and marginal cost | |||
| Has marginal revenue less than price | |||
| Faces a horizontal demand curve | |||
| Earns economic profit in the long run |
In: Economics
LATITUDES COMPANY
Adjusted Trial Balance
For the Month Ended June 30, 2020
|
Account Titles |
Debits |
Credits |
|
Cash |
$ 3,200 |
|
|
Accounts Receivable |
3,900 |
|
|
Supplies |
500 |
|
|
Accounts Payable |
$ 1,800 |
|
|
Unearned Service Revenue |
200 |
|
|
Share Capital-Ordinary |
4,000 |
|
|
Retained Earnings |
800 |
|
|
Dividends |
300 |
|
|
Service Revenue |
5,100 |
|
|
Salaries and Wages Expense |
1,800 |
|
|
Miscellaneous Expense |
300 |
|
|
Supplies Expense |
2,300 |
|
|
Salaries and Wages Payable |
|
400 |
|
$12,300 |
$12,300 |
Q. Prepare a post-closing trial balance.
In: Accounting
For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence').
| ____ |
An important role of prices is to ensure sufficient (not maximum) profits so firms can survive and grow through investment |
| ____ |
Demand management |
| ____ |
Some power passes from top management to his/her subordinates because only the subordinates have the specialized knowledge necessary to make informed decisions |
| ___ |
Price = average revenue according to demand at the quantity where marginal cost = marginal revenue |
In: Economics
For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence').
___Firms compete through their investments (as opposed to price)
___Price = average revenue according to demand at the quantity where marginal cost = marginal revenue
___Some power passes from top management to his/her subordinates because only the subordinates have the specialized knowledge necessary to make informed decisions
___The goals of the firm reflect its owners' desire for maximum profits
In: Economics
4. You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3Q and C(Q) = 1,500 + 2Q^2 , respectively.
a. What price–quantity combination maximizes your firm’s profits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination?
d. What price–quantity combination maximizes revenue?
e. Calculate the maximum revenues.
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?
In: Economics
Northern Pine Company had the following account balances on December 31, 2017: Accounts Balances Cash $3,000 Accounts Receivable $3,500 Prepaid Insurance $2,800 Equipment $16,000 Accumulated Depreciation $7,000 Accounts Payable $1,500 Deferred Revenue $800 Notes Payable $1,200 Common Stock $3,200 Retained Earnings $8,600 Dividends $1,700 Service Revenue $18,200 Salaries Expense $9,250 Rent Expense $4,250 How much is Northern Pine Company's net income for the year ended December 31, 2017
In: Accounting
Northern Pine Company had the following account balances on December 31, 2017: Accounts Balances Cash $3,000 Accounts Receivable $3,500 Prepaid Insurance $2,800 Equipment $16,000 Accumulated Depreciation $7,000 Accounts Payable $1,500 Deferred Revenue $800 Notes Payable $1,200 Common Stock $3,200 Retained Earnings $8,600 Dividends $1,700 Service Revenue $18,200 Salaries Expense $9,250 Rent Expense $4,250 How much is Northern Pine Company's net income for the year ended December 31, 2017
In: Accounting