An inexperienced fair promoter has printed 10,000 tickets for the year Eurelia Solstice fair. There are 5,000 blue tickets for adults, costing $10 each, 3000 green tickets for children, costing $5 each, and 2,000 gold tickets for seniors, costing $4 each. A random sample of 200 Eurelians intending to go to the fair have has been selected by EURELIFAX, the major polling company in Eurelia. in the sample there are a 120 adults, 55 children, and 25 series seniors. test whether the proportion of the different types of tickets are significantly different from the proportions printed by the inexperienced promoter.

1. 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 terms of total ticket revenue for the fair?

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

Monopoly

The market demand curve for doodads takes the form QD = (80 – P)/7.

a) Start a Table with doodad quantity ranging from 1 to 10, with the corresponding price in each case. Graph the demand curve.

b) Calculate and add total revenue and marginal revenue, and add the marginal revenue curve to your graph.

c) Is there any way that the monopolist can maximize profit by producing 7 doodads? Explain.

d) Assume that there are no diminishing returns to production, so that variable cost = 17, no matter how much is being produced. How much will the monopolist produce? What will be the profit? What will be the consumer surplus? Show everything on your graph.

e) What will be the monopoly profit if the monopolist can perfectly price discriminate? Will there be any consumer surplus? Indicate on your graph what changes (or, if easier for you, construct a new graph).

f) What will be the consumer surplus if this were instead a competitive market? What about the profit? Explain, and show the result on another new graph.

One of your favorite clients comes in to discuss a dilemma she is having. She is offering a new product, and she would like to offer a sales incentive to encourage customers to try it. The offer would be for a 25% refund of the sale price. Customers would submit proof of purchase with a refund form and the refund would be mailed to them.

Her question is how to record revenues when a refund is being offered. Customers will be given several months to send in for the refund and at the end of the quarter she will not be able to estimate the amount of refunds that will be paid out. She is however confident in her estimate of gross revenue on sales of this product for the next quarter of $75,000 and cost of goods sold of 65% of revenue.

Luckily for you, you are a genius when it comes to using the codification. Finding a solid answer for her on how to record revenue with a refund offer will only take a few minutes.

You think this through and develop your response.

Define the issue:

Determine path:

Identify alternatives:

Cite relevant codification §s:

Baird Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Baird has budgeted sales as indicated in the following table. The company expects a 14 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.

Required

1. Complete the sales budget by filling in the missing amounts.

2. Determine the amount of sales revenue Baird will report on its first quarter pro forma income statement.

Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.)

Determine the amount of sales revenue Baird will report on its first quarter pro forma income statement. (Round intermediate calculations and final answer to 2 decimal places.)

Exercise 4-22

The adjusted trial balance for Pharoah Company is given below:

Create a Income Statement, Retained Earnings Statement, Balance Sheet

Beta company makes and sells wadgets. Before the start of 2018, Alpha budgeted to produce and sell 24,000 wadgets. However, the company actually ended up producing and selling 27,400 wadgets in 2018. Beta budgeted to sell each wadget for $18, but the actual average selling price for each wadget was $21.50. For variable costs, beta budgeted that each wadget would use $3 of direct material costs, but the actual direct material cost was $2.50 per wadget. Please answer the following questions:

1. What will total sales be in the Flex Budget? (do not use commas)

Use the same information as in Question 1

2. What will total direct material costs be in the Flex Budget?

Use the same information as in Question 1

3. What is the revenue variance (or in other words, the flex budget variance for revenue)? (enter the number itself, not the F or U)

4. For the revenue variance you found in Question 3, was the variance Favorable or Unfavorable?

#1) Use computer software packages, such as Excel, to solve this problem. The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures.

a) Develop an estimated regression equation with the amount of television advertising as the independent variable (to 2 decimals).

b) Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals).

c) Using the multiple regression model in part b, predict weekly gross revenue for a week when $3,300 is spent on television advertising and $1,700 thousand is spent on newspaper advertising? (Give your answer in dollars, rounded to the nearest dollar). Find a 95% confidence interval around your prediction.

A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. Numerically they estimate:

P = $35.00–0.02Q

C = $4.00Q + $8000

P = selling price per unit

Q = quantity sold per year

C = cost to produce and sell Q per year

The firm’s management wishes to produce and sell the product at the rate that will maximize profit, that is, where total revenue (P*Q) minus total cost (C) will be a maximum. What quantity should they plan to produce and sell each year? Be sure to include a graphical representation of total revenue and total cost. Within the graphical representation indicate where the breakeven (total revenue = total cost) points are, where the profit region is, and the point at which maximum profit is achieved.

1. What does the word “marginal” mean?

2. What does the phrase “marginal analysis” mean?

3. What does marginal revenue mean?

4. What does marginal cost mean?

5. What does marginal profit mean? How are marginal revenue and marginal cost related to marginal profit?

6. Recall that profit is like a hill; it goes up and then it goes down. Our goal as a firm is to choose the value of Q that gets us to the top of the hill.

1. A firm tells you that the marginal revenue for the 200^th unit of output = 12 and the marginal cost for that unit = 8. What does that mean?
2. Is profit rising or falling or not changing?
3. What advice should you give this firm? (Produce more; produce less; don’t change your production number because it is just right). Explain your advice.
4. How did marginal analysis help you to give this firm advice? Answer the question “Is it worth it?” in your answer.

Please cover all questions--thank you