Please answer the following questions:

1) List the five characteristics of pure monopoly.

2) Describe the demand curve facing a pure monopoly and how it differs from that facing a firm in a purely competitive market.

3) Explain why the marginal revenue is equal to the price in pure competition but not in monopoly.

4) Use the chart to solve the following:

Calculate the Marginal Cost at Q 100?

Calculate the Marginal Cost at Q 200?

Calculate the Marginal Cost at Q 300?

Calculate the Average Total Cost at Q 100?

Calculate the Average Total Cost at Q 200?

Calculate the Average Total Cost at Q 300?

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,700 hours.

During May, the department operated at 9,080 standard hours. The factory overhead costs incurred were indirect factory wages, $42,268; power and light, $21,520; indirect materials, $18,700; supervisory salaries, $19,800; depreciation of plant and equipment, $35,700; and insurance and property taxes, $18,450.

Amount Descriptions

Factory Overhead Cost Variance Report

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,080 hours hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.

Widget Co. has the following data available relative to its investment in materials: Number of units of material used annually 20,000 Number of workdays in a year 250 Cost of placing an order $20 Annual carrying cost per unit of inventory $5 Requirements: 1. Compute the economic order quantity (please show your work). EOQ=√(2*20*20,00)/5=400 2. Give some examples of order costs and carrying costs. Order costs: cost of placing a purchase order, cost of inspection of received batches, documentations costs, transporttion cost Carrying costs: 3. Using the above data, compute the order size that results in the minimum total order and carrying cost by completing the following table. Order Size Number of Orders Total Order Cost Average Inventory Total Carrying Cost Total Order and Carrying Costs \ 100 200 300 400 500 600 700 800

I do not understand how to calculate all those things with the information given. Can someone please tell me how to? Thank you

As a production manager of Chifwamba enterprise, you are given the following output, price and total cost data facing a firm.

1. Complete the above table by calculating FC, VC, MC, AVC, AFC, MR, TR, and Economic Profits [10 Marks].
2. Assuming that the above firm is in a perfectly competitive market structure, is it operating in the short run or long run? Justify your answer by giving two reasons                       [2 Marks]
3. Graph the equilibrium solutions you found in a) for MC, MR, AVC, TVC. [3 Marks]

Bottoms Up approach
P5.12   A fast food restaurant uses a standard cost approach to aid in controlling its food cost.   The

             Following are the standard costs, selling prices and quantities sold of each of the five items

             Featured on the menu during a particular week:

Item         Cost         Selling Price            Quantity Sold

                  1             1.80                      3.95                               260

                  2             2.10                      4.95                               411

                  3             4.20                      8.95                               174

                  4             3.05                      6.95                              319

                  5             1.40                      3.95                              522

             Total actual cost for the week was $3,804.10 and total actual sales revenue was $8,873.40.

1.   Calculate total standard cost, total standard sales revenue and cost of sales percentages.

Comment on the results.

2.   The following week, with no change in menu or standard costs and selling prices, there was

   a change in the sales mix.   Although quantities sold of Items 2, 3 and 5 were virtually the

   same, many more of Item 4 and many less of Item 1 were sold.   As a result of this, would

   you expect the overall standard cost percentage to increase or decrease?   Explain your

   answer.

The following purchases and sales for Sipple Company are for November 2020. There was no inventory on November 1.

Required:

A. Compute the ending inventory as of November 30, 2020, using the perpetual inventory procedure, under each of the following methods: (1) FIFO, (2) LIFO, and (3) Weighted Average (please carry unit costs to four decimal places, and round the total cost to the nearest dollar).

B. Repeat Part A using the periodic inventory procedure.

Starting:

1.

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 10,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 8,000, 10,000, and 12,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

2.

The following data relate to factory overhead cost for the production of 6,000 computers:

If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $238,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Assume that a firm has a plant of fixed size and that it can vary its output only by varying the amount of labor it employs. The table below shows the relationships between the amount of labor employed, the output of the firm, the marginal product of labor, and the average product of labor.

              (a)      Assume each unit of labor costs the firm $20. Compute the total cost of labor for each quantity of labor the firm might employ, and enter these figures in the table.

              (b)      Now determine the marginal cost of the firm’s product as the firm increases its output. Enter these figures in the table.

              (c)      If labor is the only variable input, the total labor cost and total variable cost are equal. Find the average variable cost of the firm’s product. Enter these figures in the table.

              (d)      Describe the relationship between the marginal product of labor and the marginal cost of the firm’s product.

              (e)      Describe the relationship between the average product of labor and the average variable cost.

               Quantity                  Marginal   Average     Total                      Average

                of labor     Total     product     product   variable Marginal variable

               employed   output    of labor     of labor       cost          cost          cost    

                      0               0            –––            –––           –––           –––

                      1             10             10             10.00    $_____     $_____     $_____

                      2             22             12             11.00      _____       _____       _____

                      3             36             14             12.00      _____       _____       _____

                      4             48             12             12.00      _____       _____       _____

                      5             58             10             11.60      _____       _____       _____

                      6             66               8             11.00      _____       _____       _____

                      7             72               6             10.28      _____       _____       _____

                      8             76               4               9.50      _____       _____       _____

                      9             78               2               8.66      _____       _____       _____

                    10             78               0               7.80      _____       _____       _____

Hot water is transported from building A to building B through a 500-m-long, 2-inches steel-pipeline. The hot water is heated up to 90oC by an electric hot water boiler located in building A. The efficiency of the boiler is 95% while the average ambient temperature of the place is 20oC. In order to keep the water warm, thermal insulation (fiberglass) can be installed around the pipe. The purpose of this analysis is to determine the right amount of insulation to be used.

1. Find the pipeline heat losses as a function of the insulation thickness (assume any variable required for the calculation such as convection heat transfer coefficients, surface finishing of the insulation, etc.). Then, find the annual cost of the electricity required to compensate the heat losses in the pipeline as a function of the insulation thickness (again, assume any variable required such as electricity cost).

2. Find the investment cost of the insulation as a function of the insulation thickness (you can assume that the installed fiberglass cost per unit volume is $150/m3 and multiply that cost times the total insulation volume required, if you find a more precise way to calculate the investment, it would be welcome). Then, annualize the investment cost by dividing total investment in 15 years of lifetime for the insulation (that way you are disregarding any elaborated financial calculation including, for example, interest rate, expected profit for the investment, residual cost, etc. Again, if you want to use a more precise way to calculate the annualized investment, it would be welcome).

3. Graph the total annual cost of the project against the thickness. The total annual cost can be found by adding the annual energy cost and the annualized investment cost. The graph should have a minimum value for some given thickness. Find such thickness (this is the optimal insulation thickness) and the corresponding total annual cost (this is the minimum total annual cost of the project).

4. For the optimal insulation thickness, find the temperature of the hot water reaching building B

5. What happens to the optimal thickness, the minimum total cost, and the temperature at building B if the average ambient temperature drops to -20oC?

6. What happens if the electric hot water boiler is replaced with a natural-gas-fueled hot water boiler with 85% efficiency (assume any required variable such as LHV or price for the natural gas)?

Stuart Electronics produces video games in three market categories: commercial, home, and miniature. Stuart has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

     
Additional data for each of the product lines follow:     

    
Required

1. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.

2. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.