The following information is available from the accounting records of DeWitt Engineering Ltd. for the year ended June 30, 2021:

Instructions
Prepare a combined Statement of Income and Comprehensive Income for the year ended June 30, 2021. The company has a 30% income tax rate and records gains and losses on equity investments as other comprehensive income.

Constructing and Assessing Income Statements Using Cost-to-Cost Method
Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $360 million. The contract price of $450 million is to be paid as follows: $150 million at the time of signing; $150 million on December 31, 2016; and $150 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $144 million in 2016 and $216 million in 2017.

a. Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Enter dollar amounts in millions.

You have recently been hired to manage a clothing store. At the moment, each of your salespeople are paid an hourly wage. The store's owner is not happy with the store's profits and has instructed you to modify the compensation of your sales staff.

Below are five potential approaches to compensating your salespeople. Rank them in order of their effectiveness at helping to increase the store's profits, with the most effective approach on top and the least effective approach at the bottom.

• Piece rate: a salesperson receives a fixed amount of money for each article of clothing they sell.
• Profit sharing: at the end of each quarter, each salesperson receives a percentage of the store's quarterly profit.
• Commission: as part of their biweekly paycheck, a salesperson receives a percentage of the profit margin for each item they personally sold over the previous two weeks.
• Quarterly bonus: if, at the end of a quarter, the store's revenue surpasses a benchmark level, each salesperson receives a bonus.
• Revenue sharing: at the end of each quarter, each salesperson receives a percentage of the store's quarterly revenue.

Monopco is a monopolist in the market for widgets, Q. The market demand curve for widgets is given by p=24-Q, and its marginal revenue curve is MR=24-2Q. It also has average total cost curve ATC=Q and marginal cost curve MC=2Q. (a)Draw an accurate diagram showing Monopco’s D, MR, MC and ATC curves. (b) Find how many widgets Monopco produces, and the price it charges per widget. Compare these to the “efficient” price and quantity. (c) Calculate the profits earned by Monopco, the consumers’ surplus to buyers and the DWL created in the market. Show these areas on your diagram from (a). (d) Suppose for some reason Monopco lowered its price by $2. a. Using the midpoint method, calculate the price elasticity of demand for the drop in price from the monopoly-price to the one $2 lower. b. Show that total revenue must rise if it drops its price. Explain in words how this revenue increase is related to demand elasticity.

Under monopolistic competition, the most likely outcome is for

Group of answer choices

productive efficiency.

the absence of advertising expenditures.

price to equal marginal revenue.

price to exceed marginal cost.

none of the other answers are correct.

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Question 142 pts

Which statement is true?

Group of answer choices

A firm's explicit costs are the opportunity costs of using the resources that it already owns to make the firm's own product rather than selling those resources to outsiders for cash.

If demand is elastic, a decrease in price will increase total revenue.

Diseconomies of scale explain the downward sloping part of the long-run ATC curve.

Average revenue is the total amount the seller receives from the sale of a product in a particular time period.

Marginal cost reaches its minimum point just as marginal product reaches its minimum point as well.

In the most competitive of industries, the surviving firms will earn huge economic profit over the longer run.

XM, Ltd. was a small engineering firm that built high-tech robotic devices for electronics manufacturers. One very complex device was partially completed at the end of 2018. Barb McLauren, head engineer, knew the experimental technology was a failure and XM would not be able to complete the $20,000,000 contract next year. However, the corporation was getting ready to be sold in January. She told the controller that the device was 80% complete at year-end and on track for successful completion the following spring; the controller accrued 80% of the contract revenue at December 31, 2018. McLauren sold the company in January 2019 and retired. By mid-year, it became apparent that XM would not be able to complete the project successfully and the new owner would never recoup his investment. Requirements

1. For complex, high-tech contracts, how does a company determine the percentage of completion and the amount of revenue to accrue?

2. What action do you think was taken by XM in 2019 with regard to the revenue that had been accrued the previous year?

Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room types are provided in the table below: (Hint: Treat two room types as two different products.)                      
                      
   ADR ($)   Variable Cost ($)              
Standard rooms    394.50   256.43              
Deluxe rooms   631.20   366.10              
                      
                      
The Mock Hotel's fixed costs for a month is = =       252480              
Sales mix (contribution of each room type to total room revenue) of the hotel is:                      
                      
Deluxe rooms   66%                  
Standard rooms    34%                  
                      
Required:                      
Using the information provided above, answer the following questions:                      
a. What is the break-even room nights (number) for the the hotel given the sales mix of the two room packages?                      
b. What must be the room revenue for the hotel to make a profit of $50,000 a month?                      
c. If the hotel is considering an advertisement campaign for its rooms with a cost $5,000, hom much in room revenue should be generated to cover this extra cost?                      

E4-9  

Prepare adjusting entries from selected account data.

The ledger of Howard Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

An analysis of the accounts shows the following.

1.The equipment depreciates $280 per month.

2.Half of the unearned rent revenue was earned during the quarter.

3.Interest of $400 is accrued on the notes payable.

4.Supplies on hand total $850.

5.Insurance expires at the rate of $400 per month.

Instructions

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.

An inexperienced fair promoter has printed 10,000 tickets for the Eurelia Solstice Fair. There are 5000 blue tickets for adults, costing $10 each, 3000 green tickets for children, costing $5 each, and 2000 gold tickets for seniors, costing $4 each. A random sample of 200 Eurelians intending to go to the fair has been selected by Eurelifax, the major polling company in Eurelia. In the sample, there are 120 adults, 55 children and 25 seniors.

a) Test whether the proportions of the different types of ticket are significantly different from the proportions printed by the inexperienced promoter

b) Based on the sample of 200 Eurelians chosen by Eurelifax, form a 95% confidence interval for the mean revenue per ticket at the fair. If 8000 Eurelians go to the fair, what does the interval you have obtained translate into in terms of total ticket revenue for the fair?

c) How large a sample would be needed to form a 99% confidence interval for the mean ticket revenue if the desired margin of error is 5 cents?