Both before and after a recent earthquake, surveys were conducted asking voters which of the three candidates they planned on voting for in the upcoming city council election. Has here been a change since the earthquake? You are conducting a Test of Independence for the claim that there is an association between the earthquake and the voter support at α=0.05α=0.05. The following table summarize the result of the survey.

1. For this study, we should use Select an answer χ²-Test ANOVA 2-PropZTest 1-PropZInt 1-PropZTest 2-SampTInt χ²GOF-Test 2-PropZInt 2-SampTTest T-Test TInterval
2. 
   
3. Your friend Emily helped you with the null and alternative hypotheses...
   H0:H0: The votor support is independent from the earthquake
   H1:H1: There is an association between the earthquake and the voter support
   The expected observations for this table would be (Please show your answers to 1 decimal place)

   	Perez	Chung	Stevens
   Before
   After

4. 
   
5. 
   
6. 
   
7. The test-statistic for this data =  (Please show your answer to 3 decimal places.)
8. 
   
9. The p-value for this sample =  (Please show your answer to 4 decimal places.)
10. 
    
11. The p-value is Select an answer greater than alpha less than (or equal to) alpha  αα
12. 
    
13. Base on this, we should Select an answer reject the null hypothesis fail to reject the null hypothesis accept the alternative hypothesis accept the null hypothesis  hypothesis
14. 
    
15. As such, the final conclusion is that...
    • The sample data suggests there is sufficient evidence to conclude the claim that there is an association between the earthquake and the voter support at α=0.05α=0.05.
    • The sample data suggests there is not sufficient evidence to conclude the claim that there is an association between the earthquake and the voter support at α=0.05α=0.05.

How is market price, average revenue and marginal revenue related for a perfectly competitive firm and why?

1. Total revenue minus total cost is equal to

a. the rate of return

b.marginal revenue

c.profit

d.net cost

2. The Wax Works sells 400 candles at a price of $10 per candle. The Wax Works' total costs for producing 400 candles are $500. The Wax Works' economic profit is ____

3.if diminishing marginal returns have already set in for The Picture Perfect Framing Store and the marginal product of the fifth picture framer is 20, then the marginal product of the sixth picture framer must be

a. negative

b. zero

c. less than 20

d. greater than 20

4. Refer to the table below. Suppose output varies, ceteris paribus, with labor input in the following manner displayed above. After how many units of labor do diminishing returns set in?

a. 3

b.4

c.5

d.they do not set in

5. You own a business that answers telephone calls for physicians after their offices close. You have an incentive to substitute capital for labor if the

a.price of capital increases

b. price of labor decreases.

c. price of capital decreases.

d. marginal product of labor increases

6. Total cost is calculated as

a.the sum of total fixed cost and total variable cost.

b.the product of average total cost and price.

c. the sum of all the firm's explicit costs.

d. the sum of average fixed cost and average variable cost

7. The formula for the total fixed cost is

a.TFC = TC + TVC.

b.TFC = TVC -TC

c.. TFC = TC/TVC.

d.TFC = TC -TVC

8.The Lawn Ranger, a landscaping company, has total costs of $4,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are _____

9.Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?

10. The formula for average fixed costs is

a.TFC - q.

b.TFC/q

c.q/TFC

d.%q/%TFC.

11.________ are likely a fixed cost of a firm.

a.Wages paid to employees

b.The payments for supplies

c. Lease payments for office space

d. Travel expenses to meet with clients

12. Diminishing marginal returns implies

a.decreasing average variable costs.

b.decreasing marginal costs.

c.increasing marginal costs

d.decreasing the average fixed costs.

13.In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output ________.

a.rises; rises

b. falls; falls

c. rises; falls

d. falls; doesn't change

14.If marginal cost is between average variable cost and average total cost, then

a.both average variable cost and average total cost are increasing.

b. both average variable cost and average total cost are decreasing.

c.average variable cost is increasing and average total cost is decreasing

d.average variable cost is decreasing and average total cost is increasing.

15.  The marginal cost curve intersects the average total cost curve at the ________ value of the average total cost curve.

a.maximum

b.minimum

c.zero

d.average

Revenue is recognized when shipped. Based on shipping dates, total revenue for 2018 is $1,372,637. The audit team has set overall materiality at $13,000.

The total dollar volume of AR that was not approved was $13,726.

Would you classify the authorization control deficiency identified above as material weakness, control deficiency or significant deficiency?

In Enron's bankruptcy, "Revenue Recognition" was one of the major issues. First, summarize the revenue recognition issue in Enron Bankruptcy. Second, as an auditor, what type of evidence would you want to examine to determine whether Enron was inappropriately recording revenue from the Sithe Energies contract?

The revenue recognition model promises to provide a coherent and consistent revenue recognition framework for all companies to follow. Do you agree? Explain. (hint: you may wish to discuss the advantages and disadvantages of the model)

Pina Colada Corporation had net sales revenue of $5,860,000 and investment revenue of $220,000 for the year ended December 31, 2020. Other items pertaining to 2020 were as follows:

Pina Colada has 100,000 common shares outstanding throughout the year.

Prepare a multiple-step income statement for Pina Colada Corporation, showing expenses by function. Include calculation of EPS. (Round per share answer to 2 decimal places, e.g. 52.75.)

a.) The article states that Bird generated $3.65 per ride. This is

1. Total revenue
2. Marginal revenue
3. Average revenue
4. Profit margin

b. Categorize the following costs as fixed, variable, or opportunity costs.

Charging costs:

Repair costs:    

Regulatory costs:

Customer support staff costs:

Profit that could be made if Bird invested in pedal bikes:

Credit card processing costs:

Office space staff:

Engineers:

c. Bird has lost tens of millions of dollars and has never turned a profit since it entered the scooter rental service market. How and why does Bird continue to operate if it has never generated a profit?

d. There are typically 3-4 scooter rental companies operating in the same city. Would you predict demand for one specific scooter company, say Bird, is elastic or inelastic? Explain.

e.   Do you think the scooter-rental industry is perfectly competitive? What characteristics are like a perfectly competitive industry? What characteristics are unlike a perfectly competitive industry

The scooter wars flared up seemingly overnight, driving huge amounts of scorn, hype, and fundraising as traffic-choked tech workers in California fell in love and hate with electric scooters brought to their cities by two now famous startups: Bird and Lime. The scooter space quickly gave birth to unicorns, regulatory spats, lawsuits, and more. It was a wild ride for the companies and the tech industry as a whole. But now some time has passed, and although scooters are very much still in the conversation, the early hype has faded. That brings us to a fun question: Are the scooter companies any good as businesses? As capital-accepting and headline-generating vehicles, they are tremendous. But does that mean they’ll mint profits?Index The Bird Income Statement: Happily, after we spent time scratching about in the dark trying to answer our viability question without too much to work with, we have new data on Bird, one of the two leading American scooter companies, via this excellent report from The Information.The report in question covers the company’s performance metrics: revenue (total money brought in from riders), gross margin (the percent of revenue that Bird has left over to pay for its operating costs, like office space and staff), and its costs of revenue (the money required to provide its basic service to customers).The report’s data helps us understand Bird’s chance of long-term survival. It also helps us understand the scooter sector, as other key players have similar business models.Constructing gently, here’s a partial income statement of sorts for Bird based on what The Information gleaned from a Bird investor digest. Revenue: Bird generated $3.65 per ride, far above our estimate of $2.50. Bird scooters were handling six rides per day in January of this year, a figure that fell to five by May. The number of rides per day matters for Bird and other scooter companies. If they can generate more revenue per day per scooter by increasing utilization, their model makes more sense. Here we see the opposite trend.Those rides grew Bird’s revenue from a run rate of $65 million  in May of 2018 to “hundreds of millions of dollars annually” by this October.So the company has growth figured out; however, its profitability is a different matter.Gross Margins: As the above chart indicates, Bird has a diverse set of revenue costs. Let’s explore them.Bird’s gross margin is 19 percent. That’s what left of revenue after charting (47 percent of revenue), repair (14 percent), credit card processing (11 percent), regulatory costs (5 percent), and customer support and insurance (3 percent).Is 19 percent good? Not really. Keep in mind that a company has to pay its operational costs from its gross profit. Gross profit is revenue minus cost of revenue. So if you only have 19 percent gross margins, you’ve spent most of your revenue just generating your top line. At Bird’s old $65 million run rate, for example, the firm would only have $12.4 million left over after costs of revenue to pay for offices and staff with 19 percent gross margins.Software companies sport gross margin percentages in the high 70s to low 80s. That’s why they are worth so much; their revenue is extremely profitable on a per-dollar basis.The figures above tell us margin improvement (getting that gross margin percentage higher) at scooter companies will be paramount. At Bird’s current gross margins, the firm and its cohort will struggle to generate operating profits.The Information goes on to note that “Bird projected much better economics in the ‘near term,’ allowing it to generate a 33% gross profit margin.” I’d wager that’s the golden ticket. Every percent of gross margin that Bird can drive at the moment, holding revenue flat, raises its gross profit by around 5 percent. That’s enormous.Thinking a bit more, Bird and Lime must be consuming mountains of cash (more here and here) for investing purposes; neither, given our math, generate anything like enough cash to finance their employee costs—let alone what they are spending on new hardware. So I’d hazard that while either firm is adding markets to their portfolio, they are working to add capital to their accounts.

Monopoly Discussion Total Revenue and Elasticity:

The total revenue test shows that the monopolist will avoid the inelastic segment of its demand schedule. As long as demand is elastic, total revenue will rise when the monopoly lowers its price, but this will not be true when demand becomes inelastic.

• At this point (inelastic), what happens to total revenue? Explain in detail use examples, data, and facts to support your argument.
• Monopolists will expand output only in the elastic portion of its demand curve. Why?
• How does the decision impact the firm's output, revenue, and or profit.