Questions
A monopolistic firm operates in two separate markets. No trade is possible between market A and...

A monopolistic firm operates in two separate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows:

     Market A p = 15 - Q; Market B p = 11 - Q

The company estimates its total cost function to be TC = 4Q. Calculate the following:

  1. quantity, total revenue, and profit when the company maximizes its profit and charges the same price in both markets
  2. quantity, total revenue, and profit when the company charges different prices in each market and maximizes its total profit

In: Operations Management

Scenario 14-4 The information below applies to a competitive firm that sells its output for $40...

Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 150 units of output, its average total cost is $24.50. • When the firm produces and sells 151 units of output, its average total cost is $24.55. Refer to Scenario 14-4. Let Q represent the quantity of output. Which of the following magnitudes has the same value at Q = 150 and at Q = 151?

a.

average fixed cost

b.

average revenue

c.

total cost

d.

total revenue

In: Economics

The monthly sales of Stewart Electronics' new sound system are given by q(t) = 2000t -...

The monthly sales of Stewart Electronics' new sound system are given by q(t) = 2000t - 100t2 units per month, t months after its introduction. The price Stewart charges is p(t) = 1000 - t2 dollars per sound system, t months after introduction.

a. Find the rate of change of monthly sales after 6 months.

b. Find the rate of change of monthly price after 6 months.

c. Find the equation of the rate of change of the monthly revenue.

d. Find the rate of change of the monthly revenue after 6 months.

In: Math

Practicality Partnership provides budgeting and financial investment counseling.


Practicality Partnership provides budgeting and financial investment counseling. The firm earned $500,000 in revenue and incurred $100,000 in variable costs last month. If the firm has $250,000 in fixed costs each month, Last month, what was the firm's margin of safety (in revenue dollars) and degree of operating leverage? 

Selected Answer: 

a. Margin of safety: $312,500; Degree of operating leverage: 2.667 

b. Margin of safety: $187,500; Degree of operating leverage: 2.667 

c. Margin of safety: $187,500; Degree of operating leverage: 0.375 

d. Margin of safety: $312,500; Degree of operating leverage: 0.375 

In: Accounting

Question 2 (10 marks): Option M: benefits of $500,000 a year, initial cost of $5,000,000, indirect...

Question 2 :
Option M: benefits of $500,000 a year, initial cost of $5,000,000, indirect annual net revenue of $70,000, useful life of 25 years
Option N: benefits of $600,000 a year, disbenefits of $150,000 a year, initial cost of $6,500,000, indirect annual net revenue of $80,000, useful life of 30 years
Option P: benefits of $600,000 a year, disbenefits of $120,000 a year, initial cost of $3,600,000, annual M&O of $60,000, useful life of 20 years
If the options are mutually exclusive and MARR is 8%, use benefit-cost analysis to select the best alternative.

In: Finance

Chelsea Sports has the following balances on their Trial Balance in random order.  Each account contains the...

Chelsea Sports has the following balances on their Trial Balance in random order.  Each account contains the balance that is normal for that type of account.

Accounts Payable

$62,800

Building

$75,000

Service Revenue

460,000

Note Payable – long term

43,090

Equipment

22,500

Common Stock

120,000

Patent

5,250

Accounts Receivable

102,200

Cash

86,290

Unearned Revenue

15,400

Dividends

12,200

Prepaid Expenses

7,250

Accumulated Depreciation

12,500

Retained Earnings (Beg)

0

What are total expenses for the period?

A.

$415,300

B.

$390,900

C.

$327,800

D.

$403,100

E.

$400,600

In: Accounting

Question 2 (10 marks): Option M: benefits of $500,000 a year, initial cost of $5,000,000, indirect...

Question 2 : Option M: benefits of $500,000 a year, initial cost of $5,000,000, indirect annual net revenue of $70,000, useful life of 25 years Option N: benefits of $600,000 a year, disbenefits of $150,000 a year, initial cost of $6,500,000, indirect annual net revenue of $80,000, useful life of 30 years Option P: benefits of $600,000 a year, disbenefits of $120,000 a year, initial cost of $3,600,000, annual M&O of $60,000, useful life of 20 years If the options are mutually exclusive and MARR is 8%, use benefit-cost analysis to select the best alternative.

In: Economics

Joseph Company operates three divisions, X, Y, and Z. The following information is available for the...

Joseph Company operates three divisions, X, Y, and Z. The following
information is available for the most recent month:

Joseph Company:
Sales revenue .............. $700,000
Segment margin ............. $239,000
Net income ................. $125,000

Division X:
Sales revenue .............. $200,000
Contribution margin ........ $140,000
Segment margin ............. $109,000

Division Y:
Variable costs ............. 70% of sales

Division Z:
Variable costs ............. $118,000
Traceable fixed costs ...... $ 56,000
Contribution margin ........ 60% of sales

Calculate the total fixed costs incurred by Joseph Company during
the most recent month.

Please label the answer as answer=-----------

In: Accounting

Mel's male accessories sells wallets and money clips. Historically the firms sales have averaged three wallets...

Mel's male accessories sells wallets and money clips. Historically the firms sales have averaged three wallets for every money clip. Each wallet has an R80 contribution margin and each money clip has a R60 contribution margin. Mel's incurs fixed costs in the amount of R180000. The selling prices of wallets and money clips, respectively, are R200 and R150. The firms tax rate is 40%.

Required :
a. How much revenue is needed to break even and how many wallets and money clips does this present.
b. How much revenue is needed to earn an operating income of R150000?

In: Accounting

Upsilon Corp. had a vacant warehouse that it rented out to Omnicron Distributers for a monthly...

Upsilon Corp. had a vacant warehouse that it rented out to Omnicron Distributers for a monthly rent of $9,900. During December 2019, Upsilon collected $7,000 cash from Omnicron for the December 2019 rent. Which of the following is correct with respect to the December 2019 financial statements of Upsilon Corp?

$9,900 would appear on the income statement as rent revenue earned.??

$9,900 would appear on the balance sheet as rent receivable.

$9,900 would be reported on the statement of cash flows.

$7,000 would appear on the balance sheet as prepaid rent.

$7,000 would appear on the balance sheet as unearned rent revenue.

In: Accounting