Problem 2. Suppose there is only one yoga studio in town. The marginal cost of producing yoga sessions is as follows: MC=12. The yoga studio faces the following market demand function: Q=20-(1/2)P, and marginal revenue MR=40-4Q.
In: Economics
Question A3 Bibi Mobile is the only authorized producer in producing smart phone in Country X which is a small country. Its annual revenue is $4,000,000 and the average total cost per smart phone produced is $5,000. The marginal revenue function and the marginal cost functions are as below: Marginal Revenue function: MR = 12,000 - 10Q Marginal Cost function: MC = 2,000 + 15Q where Q represents quantity.
(a) Define the market structure of Bibi Mobile.
(b) State the profit maximization condition. According to this condition based on the given information, calculate the profit maximizing price and quantity of Bibi Mobile? What is the total profit (loss) earned by this company?
(c) Based on the given information and your answers in part (b), illustrate the situation with a diagram and label the critical data related to price, quantity, cost and profit (loss) condition in the diagram. No explanation is needed.
(d) Suppose there is an increase in the minimum wage in Country X and most of the workers are paid on this wage level in Bibi Mobile. Bibi Mobile has recorded a break-even state of profitability afterwards. Illustrate this situation in the same diagram of part (c). Explain.
In: Economics
Bikes Ltd. offers customers a loyalty card whereby customers receive a stamp every time they have their bike tuned up. Upon presentation of 5 stamps, customers are entitled to receive a bike light for $5. It is expected that 75% of the stamps will be redeemed. Tune-ups cost $20 and retail for $50 each; lights cost $10 and retail for $25. 1,000 lights have been purchased as prizes. In 20X9, 6,000 tune-ups were completed and 750 lights were given out. Bikes use the residual value method to allocate the transaction price to performance obligations. Required: (a) Assume Bikes Ltd. is a public company using IFRS. Calculate the following balances at Bikes year ended December 31, 20X9: total revenue, premium expense, premium inventory, and unearned revenue. Clearly indicate whether each balance is a debit or credit. (b) Assume Bikes Ltd. is a private company using ASPE. Calculate the following balances at Bikes year-ended December 31, 20X9: total revenue, premium expense, premium inventory, and estimated liability for premiums. Clearly indicate whether each balance is a debit or credit.
In: Computer Science
Please Provide the Answers and Solution for this Question Clearly:
. Presented below is information related to Dublin Company for 2018.
|
Unrealized gain on non-trading equity securities, net of tax |
€200,000 |
|
Retained earnings balance, January 1, 2018 |
1,200,000 |
|
Sales revenue |
35,000,000 |
|
Unearned sales revenue |
150,000 |
|
Prepaid expense |
80,000 |
|
Freight-In |
10,000 |
|
Cost of goods sold |
25,000,000 |
|
Purchase Discounts |
15,000 |
|
Interest expense |
100,000 |
|
Selling and administrative expenses |
5,700,000 |
|
Write-off of goodwill |
1,200,000 |
|
Income taxes for 2018 |
1,360,000 |
|
Dividend revenue |
100,000 |
|
Gain on the disposition and operations of the wholesale division (Gain before income tax) |
400,000 |
|
Loss due to flood damage |
300,000 |
|
Gain on the sale of investments |
200,000 |
|
Dividends declared on ordinary shares |
250,000 |
|
Allocation to non-controlling interest |
30,000 |
Required:
Prepare an (1) income statement and (2) a retained earnings statement. Dublin Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On August 10, Dublin sold the wholesale operations to Rene Company. During 2018, there were 400,000 ordinary shares outstanding all year.
In: Accounting
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company’s flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,200 | |
| Revenue ($4.10q) | $ | 29,520 |
| Expenses: | ||
| Packing supplies ($0.35q) | 2,520 | |
| Oyster bed maintenance ($3,100) | 3,100 | |
| Wages and salaries ($2,300 + $0.30q) | 4,460 | |
| Shipping ($0.65q) | 4,680 | |
| Utilities ($1,210) | 1,210 | |
| Other ($450 + $0.01q) | 522 | |
| Total expense | 16,492 | |
| Net operating income | $ | 13,028 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,200 | |
| Revenue | $ | 26,700 |
| Expenses: | ||
| Packing supplies | 2,690 | |
| Oyster bed maintenance | 2,960 | |
| Wages and salaries | 4,870 | |
| Shipping | 4,410 | |
| Utilities | 1,020 | |
| Other | 1,142 | |
| Total expense | 17,092 | |
| Net operating income | $ | 9,608 |
Required:
Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting
B. Presented below is information related to Dublin Company for 2018.
|
Unrealized gain on non-trading equity securities, net of tax |
€200,000 |
|
Retained earnings balance, January 1, 2018 |
1,200,000 |
|
Sales revenue |
35,000,000 |
|
Unearned sales revenue |
150,000 |
|
Prepaid expense |
80,000 |
|
Freight-In |
10,000 |
|
Cost of goods sold |
25,000,000 |
|
Purchase Discounts |
15,000 |
|
Interest expense |
100,000 |
|
Selling and administrative expenses |
5,700,000 |
|
Write-off of goodwill |
1,200,000 |
|
Income taxes for 2018 |
1,360,000 |
|
Dividend revenue |
100,000 |
|
Gain on the disposition and operations of the wholesale division (Gain before income tax) |
400,000 |
|
Loss due to flood damage |
300,000 |
|
Gain on the sale of investments |
200,000 |
|
Dividends declared on ordinary shares |
250,000 |
|
Allocation to non-controlling interest |
30,000 |
Required:
Prepare an (1) income statement and (2) a retained earnings statement. Dublin Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On August 10, Dublin sold the wholesale operations to Rene Company. During 2018, there were 400,000 ordinary shares outstanding all year.
In: Accounting
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company’s flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,200 | |
| Revenue ($4.10q) | $ | 29,520 |
| Expenses: | ||
| Packing supplies ($0.30q) | 2,160 | |
| Oyster bed maintenance ($3,100) | 3,100 | |
| Wages and salaries ($2,400 + $0.50q) | 6,000 | |
| Shipping ($0.60q) | 4,320 | |
| Utilities ($1,270) | 1,270 | |
| Other ($420 + $0.01q) | 492 | |
| Total expense | 17,342 | |
| Net operating income | $ | 12,178 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,200 | |
| Revenue | $ | 26,700 |
| Expenses: | ||
| Packing supplies | 2,330 | |
| Oyster bed maintenance | 2,960 | |
| Wages and salaries | 6,410 | |
| Shipping | 4,050 | |
| Utilities | 1,080 | |
| Other | 1,112 | |
| Total expense | 17,942 | |
| Net operating income | $ | 8,758 |
Required:
Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting
Bibi Mobile is the only authorized producer in producing smart phone in Country X which is a small country. Its annual revenue is $4,000,000 and the average total cost per smart phone produced is $5,000. The marginal revenue function and the marginal cost functions are as below: Marginal Revenue function: MR = 12,000 - 10Q Marginal Cost function: MC = 2,000 + 15Q where Q represents quantity.
(a) Define the market structure of Bibi Mobile.
(b) State the profit maximization condition. According to this condition based on the given information, calculate the profit maximizing price and quantity of Bibi Mobile? What is the total profit (loss) earned by this company?
(c) Based on the given information and your answers in part (b), illustrate the situation with a diagram and label the critical data related to price, quantity, cost and profit (loss) condition in the diagram. No explanation is needed.
(d) Suppose there is an increase in the minimum wage in Country X and most of the workers are paid on this wage level in Bibi Mobile. Bibi Mobile has recorded a break-even state of profitability afterwards. Illustrate this situation in the same diagram of part (c). Explain.
In: Economics
A xY = F (zK, zL) where x <z
B zY = F (zK, zL)
C yY =F (zK, zL) where y>z
Which production function illustrates the case of constant returns to scale?
Which production function illustrates the case of decreasing returns to scale?
Which production function illustrates the case of increasing returns to scale?
The costs of expected inflation include (choose one or more)
A
shoeleather cost
B
menu costs
C
variability in relative prices leading to microeconomic inefficiencies in the allocation of
resources
D
(tax) bracket creep
E
the inconvenience of living in a world with a changing price level
Here are three statements about seigniorage. Which are TRUE? (Choose one or more)
A
In the Middle Ages seigniorage was over and above brassage (a competitive charge for
minting coins).
B
In the Middle Ages seigniorage was a source of revenue to the crown, claimed by the
sovereign by virtue of his prerogative.
C
Today seigniorage is the revenue raised by the printing of money.
D
Today seigniorage is like a tax on the holders of money.
E
In the United States, seigniorage has usually accounted for less than 3 percent of
government revenue.
In: Economics
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The company’s flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,700 | |
| Revenue ($4.05q) | $ | 31,185 |
| Expenses: | ||
| Packing supplies ($0.40q) | 3,080 | |
| Oyster bed maintenance ($3,500) | 3,500 | |
| Wages and salaries ($2,500 + $0.50q) | 6,350 | |
| Shipping ($0.60q) | 4,620 | |
| Utilities ($1,240) | 1,240 | |
| Other ($500 + $0.01q) | 577 | |
| Total expense | 19,367 | |
| Net operating income | $ | 11,818 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,700 | |
| Revenue | $ | 27,500 |
| Expenses: | ||
| Packing supplies | 3,250 | |
| Oyster bed maintenance | 3,360 | |
| Wages and salaries | 6,760 | |
| Shipping | 4,350 | |
| Utilities | 1,050 | |
| Other | 1,197 | |
| Total expense | 19,967 | |
| Net operating income | $ | 7,533 |
Required:
Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting