Complete all true or false questions
Firms maximize profits where MR=MC. MR= dTR/dQ , MC= dTC/dQ Using the following Total Revenue and Cost functions to answer the following questions.
TR= 50Q TC=10Q^2 - 50Q +100
_____ (1) Marginal Revenue is $50 and is constant over all Q.
_____ (2) Profits are maximized at a Q more than 20.
_____ (3) The total cost function is in the form of a quadratic function.
_____ (4) Marginal Cost is: MC= 20Q-100
_____ (5) Profits (TR-TC) at the maximum is greater than $280.
In: Economics
Takeover is a general and imprecise term referring to the transfer of control of a firm from one group of shareholders to another. This can occur through any one of three means: acquisitions, proxy contests, and going-private transactions. Discuss THREE (3) basic legal procedures that one firm can use to acquire another firm.
One important reason for an acquisition is that the combined firm may generate greater revenues than two separate firms. Increase in revenue may come from marketing gains, strategic benefits, and increase in market power. Briefly describe this revenue enhancement to the company.
In: Finance
The State Highway Department is considering a bypass loop that is expected to save motorists $820,000 per year in gasoline and other automobile-related expenses. However, local businesses will experience revenue losses estimated to be $135,000 each year. The cost of the loop will be $9,000,000. (a) Calculate the conventional B/C ratio using an interest rate of 6% per year and a 20-year project period. (b) Calculate the conventional B/C ratio without considering the disbenefits. Is the project economically justified with and without considering the revenue losses? (c) Develop the single-cell spreadsheet functions that will answer the two questions above.
In: Economics
Jasper makes a $33,000, 90-day, 7.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
Multiple Choice
Debit Cash $35,475; credit Interest Revenue $2,475, credit Notes Receivable $33,000.
Debit Notes Payable $33,000; Debit Interest Expense $2,475; credit Cash $35,475.
Debit Cash for $33,000; credit Notes Receivable $33,000.
Debit Cash $33,618.75; credit Notes Receivable for $33,618.75.
Debit Cash $33,618.75; credit Interest Revenue $618.75; credit Notes Receivable $33,000.
In: Accounting
Jasper makes a $29,000, 90-day, 9.0% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
Debit Cash $29,652.50; credit Interest Revenue $652.50; credit Notes Receivable $29,000.
Debit Notes Payable $29,000; Debit Interest Expense $2,610; credit Cash $31,610.
Debit Cash $31,610; credit Interest Revenue $2,610, credit Notes Receivable $29,000.
Debit Cash $29,652.50; credit Notes Receivable for $29,652.50.
Debit Cash for $29,000; credit Notes Receivable $29,000.
In: Accounting
The ledger of Hammond Company, on March 31, 2020, includes these selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance RM 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment RM5,000
Unearned Service Revenue 9,200
An analysis of the accounts shows the following.
1.Insurance expires at the rate of RM100 per month.
2.Supplies on hand total RM800.
3.The equipment depreciates RM200 a month.
4.During March, services were performed for one-half of the unearned service revenue.
Prepare the adjusting entries for the month of March.
In: Accounting
E3–14 Prepare an adjusted trial balance for Toronto Mobile Pet Grooming as at June 30, 2020. Assume that all accounts have their normal balances. List expenses in alphabetical order.
Accounts payable.............................................................. $ 4,000
Accumulated amortization—truck................................. 7,000
Amortization expense—truck.......................................... 1,000
Cash..................................................................................... 2,400
Truck................................................................................... 40,000
Insurance expense............................................................. 200
Les Birman, capital............................................................ 17,000
Les Birman, withdrawals................................................. 8,000
Prepaid insurance............................................................. 1,800
Salaries expense................................................................. 16,000
Salaries payable................................................................. 2,000
Service revenue.................................................................. 44,000
Grooming supplies............................................................ 4,000
Supplies expense................................................................ 2,000
Unearned service revenue................................................ 1,400
In: Accounting
A gas station sells 1500 gallons of gasoline per hour if it charges $ 2.20 per gallon but only 1300 gallons per hour if it charges $ 2.95 per gallon. Assuming a linear model
(a) How many gallons would be sold per hour of the price is $
2.25 per gallon?
Answer:
(b) What must the gasoline price be in order to sell 800 gallons
per hour?
Answer: $
(c) Compute the revenue taken at the four prices mentioned in
this problem -- $ 2.20, $ 2.25, $ 2.95 and your answer to part (b).
Which price gives the most revenue?
Answer: $
In: Statistics and Probability
For your initial post: Assume you are going to a bank to apply for a loan for a new product you would like to manufacture and sell or provide a new service to clients. Use your imagination to think of a product or service? What types of expenses would be involved to make the product or service that would be included in your cash flow model? How would you estimate revenue for your product or service? What other factors should you consider in developing pro forma cash flows? What revenue or expense assumptions might be most affected by a sensitivity analysis?
In: Finance
Suppose the demand and supply for a product are described by the equations
Qd = 1080 -4P and Qs = -120+8P.
a. Find the equilibrium P, Q and elasticities of demand and supply
b. If a $6 per unit tax is levied on the demand for the product, find new P, Q and the percent of the tax incidence that falls on consumers and firms.
c. Find the tax revenue and welfare loss associated with the tax.
d. Now double the tax to $12. Find new P, Q, tax revenue and welfare loss.
e. What happens to the efficiency of taxation as we increase the amount of the tax? What are the implications of this result?
In: Economics