Interns,

Mr. Howell, the prestigious founder and owner of our company would like you to perform an analysis on the company’s weekly revenues. He is requiring that the current weekly marginal revenue be at least $5,000 per week and if it is not currently at that level how fast should sales be changing to reach the target marginal revenue level. The most current information regarding weekly revenues can be found in Mr. Howell’s email below.

To be solved using derivatives.

“Mr. Kleppin,

It has come to my attention that our weekly marginal revenues may not be at the minimum level of $5,000 per week as I required. According to the sales report, we are currently selling 1,000 DVD’s per week and sales are currently rising by 200 DVD’s a week (gotta love the Marvel Universe! Customers can’t get enough!). They also inform me that our current selling price is $20 and that the price is dropping by $1 per week to encourage more sales. I would like you, Mr. Kleppin, to give the interns a chance to earn one of the 10 available positions at the end of their internship by giving them the opportunity to do the analysis. Again, I need to know if we are at the minimum level of $5,000 per week in marginal revenue, and if not, at what level should our sales per week be at so as to achieve the minimum marginal revenue level.”

Your business has estimated its total cost to be TC = 3800 + 0.25Q + 0.0018Q2; its marginal cost is thus MC = 0.25 + 0.0036Q, where Q is the amount of pieces provided and TC is in dollars. Because your market is moderately competitive, your business is capable of selling its output for $12.85 each (which therefore produces MR = 12.85 and TR = 12.85Q).

a. Make a table in Excel showing TC and TR with Q on the horizontal axis. Have Q go from 0 to 10,000 units (each row of your Q column can grow by a relatively large number so that your table isn’t large). Create a second table displaying MC and MR with Q again on the horizontal axis.

b. What is the optimal level of output for your business to produce/sell? What is the marginal revenue of the final unit sold?

c. What are the total revenue, total cost, and profit (net benefit/net revenue/etc.) of selling the optimal amount of units?

d. An eager worker at your business hints that, because the business makes $12.85 revenue for each unit sold, then the company could make still more profit by selling more than the level chosen in part b; why would your business not want to make and sell more output than the level you picked in part b?

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for June as shown below:

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

What amount of revenue would be included in Adger’s flexible budget for June?

What amount of employee salaries and wages would be included in Adger’s flexible budget for June?

What amount of travel expenses would be included in Adger’s flexible budget for June?

What amount of other expenses would be included in Adger’s flexible budget for June?

What net operating income would appear in Adger’s flexible budget for June?

What is Adger’s revenue variance for June?

What is Adger’s employee salaries and wages spending variance for June?

What is Adger’s travel expenses spending variance for June?

What is Adger’s other expenses spending variance for June?

What amount of revenue would be included in Adger’s planning budget for June?

What amount of employee salaries and wages would be included in Adger’s planning budget for June?

What amount of travel expenses would be included in Adger’s planning budget for June?

What amount of other expenses would be included in Adger’s planning budget for June?

What activity variance would Adger report in June with respect to its revenue?

What activity variances would Adger report with respect to each of its expenses for June?

1. A company had credit sales $30,000 and cash sales of $23,000 during the month of May. Also during​ May, the company paid wages of $24,000 and utilities of $9,000. It also received payments from customers on account totaling $4,400. What was the​company's net income for the​ month?

2. Which accounts are increased by​ debits?

A.

Accounts Receivable and Utilities Expense.

B.

Accounts Payable and Service Revenue.

C.

Salaries Expense and Common Stock.

D.

Cash and Accounts Payable.

3. Posting​ is:

A.

copying the information from the journal to the ledger.

B.

copying the information from the ledger to the financial statements.

C.

entering the data into the journal.

D.

copying the information from the journal to the trial balance

4. A business paid $3,000 on account. The journal entry​ would:

A.

debit Accounts Receivable for $3,000

and credit Revenue for $3,000.

B.

debit Accounts Payable for $3,000

and credit Cash for $3,000.

C.

debit Cash for $3,000 and credit Accounts Payable for $3,000.

D.

debit Cash for $3,000 and credit Retained Earnings for $3,000

5. On May​ 1, a business provided legal services to a client and billed the client $2,200.The client promised to pay the business in one month. Which journal entry should the business record on May​ 1?

1. Debit Cash for $2,200 and credit Retained Earnings for $2,200.

2. Debit Cash for $2,200 and credit Service Revenue for $2,200.

3. Debit Accounts Receivable for $2,200 and credit Service Revenue for $2,200.

4. Debit Accounts Payable for $2,200 and credit Service Revenue for $2,200.

6. The Accounts Receivable account for​ Johnny's Mechanic Shop had a beginning balance of $34,000. During the​ month, Johnny made sales on account of $47,000 The ending balance in the Accounts Receivable account is $35,000. What are cash collections for the​ month?

1. $47,000

2. $46,000

3. $81,000

4. $ 34,000

1. What criteria do consumers apply when deciding whether or not to consume

a. The consumer would consume only if the price is lower than his highest willingness to pay

b. The consumer would only consume if his surplus is greater than zero

c. The consumer would only consume if the price is higher than his highest willingness to pay

d. Both A&B

2. A demand curves describes

a. the amount of units a consumer will purchase at a given price

b. the amount of units a producer will sell at a given price

c. both the amount of units that a consumer will buy and a producer will produce at a given price

d. the amount of units supplied given a change in prices

3. The price elasticity of demand tells us about

a. The sensitivity of price to quantity

b. The sensitivity of quantity to price

c. The sensitivity of income to price .

d. The sensitivity of income to quantity

4. If the quantity sold of two-liter Coke bottles increases by 10% when price falls by 2%, what is the total change in revenue?

a. Revenue increases by 12%

b. Revenue increases by 8%

c. Revenue falls by 8%

d. Revenue falls by 12%

5. If cars are normal goods, a fall in income will

a. Increase the demand for cars

b. Decrease the demand for cars

c. Have no effect on the demand for cars

d. None of the above

6. Its lunch time, you are hungry and would like to have some pizza. By the law of diminishing marginal value,

a. you would pay more for your first slice of pizza than your second

b. you would pay more for your second slice of pizza than your first

c. you would pay an equal amount of money for both the slices since they are identical

d. none of the above

The trial balance of Johnson Travel at December 31,2005 follows;along with the data for the month end adjustments.

DEBİT CREDIT

Cash 1300

A/R 6600

Supplies 2300

Prepaid rent 1600

Furniture 36000

Accumulated depreciation(furniture) 4800

A/P 4500

Unearned service revenue 600

Capital 26000

Withdrawals 29000

Service Revenue 106000

Deprecation expense 2300

Salary Expense 39900

Rent expense 20000

Supplies expense 2900

TOTAL 141900 141900

Questions: What adjusting entry will Johson make on this transaction ?

a) Depreciation on furniture for the month.The estimated useful life of the furniture is 2 years.

b)On December 1,the bussiness moved into a new office and paid the first 4 months rent as advance.Prepaid rent expense during the month.

c)Service Revenue of 300 dollars were earned during the month from the service performed for clients who had paid in advance.

d)The salary expense is 245 dollars per day-and the business pays employees every Friday(weekly payroll is from Monday to Friday).This year December 31 falls on a Monday.

1- What is Total Expense ?

2-Total Liabilities ?

3-The A/P in the Adjusted Trial Balance is ?

4-The total debit or credit amount in the Adjusted Trial Balance ?

5-Which of the following is the closing entry for withdrawals on Dec 31 ?

6-Which of the following is closing entry for revenue on Dec 31 ?

7- The next capital balance in the post closing trial balance is ?

8-How much is the Debit/Credit amount in the Post-closing trial balance ?

9-How much is the revenue balance in the post closing trial balance ?

10-The current assets in the classified balance sheet is ?

11-The total assets is ?

Worksheet complete through the Trial Balance.

Thanos Merchandising Company was established on January 1, 2019. As of December 31, 2019, the following additional information is available:

1. $5.000 of Office Supplies has been used.

2. Accrued interest revenue is $10.000.

3. $15.000 of prepaid rent has expired as of December 31, 2019.

4. As of December 31, 2017, $20.000 of the Unearned Service Revenue is earned.

Required:

a. Find the Marketing Expense for the year of 2019 (Hint: Write all the accounts to debit or credit sides while considering their nature. The total of debit and credit sides should be equal.) (10 points)

b. Prepare and journalize the adjusting entries. (20 points)

c. Prepare the adjusted trial balance. (20 points)

d. Journalize the closing entries. (20 points)

e. Prepare Income Statement and Statement of Financial Position (Balance Sheet) of Thanos Service Company in proper form. (30 points