Munoz Electronics produces video games in three market categories: commercial, home, and miniature. Munoz 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

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.

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.

PLEASE EXPLAIN WHY YOU CHOOSE EACH ANSWER

1). How many distinct ways can a President, Vice President, Secretary and Treasurer be selected from a group of 10 people if no one can hold more than on position?

A). P(10,4)

B). 10 choose 4

C). 10^4

D). 4^10

E). 13 choose 10

F). None of these

2). How many shortest lattice paths are there from (0,0) to (10,4)

A). P(10,4)

B). 10 choose 4

C). 10^4

D). 4^10

E). 13 choose 10

F). None of these

3). At a movie theater with 4 different movies, how many ways can 10 people select a show? They do not have to all go to the same shoe but several poeple can go to the same show.

A). P(10,4)

B). 10 choose 4

C). 10^4

D). 4^10

E). 13 choose 10

F). None of these

Analyze if the statements that are presented below are True or False. You MUST justify your answer to get credit. Answers without justification (even if they are correct) will be given zero marks.

1. (a) In any Pareto-optimal allocation of a two-good economy, each consumer has to consume a positive amount of both goods.

2. (b) A monopolist never produces on the elastic segment of its average revenue curve.

3. (c) If a firm’s production exhibits increasing returns to scale, then the firm’s marginal costs are decreasing and below its average costs.

4. (d) Maroon Theater practices third-degree price discrimination and sells tickets to three groups of customers: students, regular customers and senior citizens. The inverse demand of the three groups is linear. Furthermore, the students’ and senior citizens’ elasticities of demand for tickets are −4 and −3, respectively. Because the price charged to regular customers is greater than the price charged to senior citizens, we know with certainty that the ticket price for students will be lower than the ticket price for regular customers.

A statistical program is recommended. You may need to use the appropriate appendix table or technology to answer this question.

The owner of a theater would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

(a)

Find an estimated regression equation relating weekly gross revenue (in thousands of dollars) to television and newspaper advertising (in thousands of dollars). (Let x₁ represent television advertising, x₂ represent newspaper advertising, and y represent weekly gross revenue. Round your numerical values to two decimal places.)

ŷ =

Plot the standardized residuals against ŷ.

does the residual plot support the assumptions about ε? Explain

Suppose that the sitting​ back-to-knee length for a group of adults has a normal distribution with a mean of μ=24.0 in. and a standard deviation of σ=1.1 in. These data are often used in the design of different​ seats, including aircraft​ seats, train​ seats, theater​ seats, and classroom seats. Instead of using 0.05 for identifying significant​ values, use the criteria that a value x is significantly high if​ P(x or ​greater) ≤0.01 and a value is significantly low if​ P(x or ​less) ≤0.01. Find the​ back-to-knee lengths separating significant values from those that are not significant. Using these​ criteria, is a​ back-to-knee length of 26.3 in. significantly​ high?

***Find the​ back-to-knee lengths separating significant values from those that are not significant.

​Back-to-knee lengths greater than ____ in. and less than _____ nothing in. are not​ significant, and values outside that range are considered significant.

​(Round to one decimal place as​ needed.)

***A​ back-to-knee length of 25.3 in. ______ [is or is not] significantly high because it is _______ [Inside or outside] the range of values that are not considered significant.

Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below.

The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries.

Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served.

Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $180,000 and that 12,000 diners had been served. Therefore, the average cost per diner was $15.

Required:

1&2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of dinners? (Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places.) Please include steps & work

Answer all questions
1. Explain the “Law of Equi-marginal utility” as applied in consumer theory
2. Compare the equilibrium of a firm under perfect competition and monopoly
3. Suppose that the total cost function of a firm operating in the short run is given by
TC = Q2+ 24Q+6 Where TC=Total Cost Q= Quantities produced
Required: i) The ATC function ii) The marginal cost function iii) The average variable cost function iv) Calculate the average fixed cost where Q= 8
4. Distinguish between income and substitution effects of a price change for a consumer
5. Discuss the history of development of Economics as a discipline
{Total =30 Marks}

Answer all questions
1. Explain the “Law of Equi-marginal utility” as applied in consumer theory
2. Compare the equilibrium of a firm under perfect competition and monopoly
3. Suppose that the total cost function of a firm operating in the short run is given by
TC = Q2+ 24Q+6 Where TC=Total Cost Q= Quantities produced
Required: i) The ATC function ii) The marginal cost function iii) The average variable cost function iv) Calculate the average fixed cost where Q= 8
4. Distinguish between income and substitution effects of a price change for a consumer
5. Discuss the history of development of Economics as a discipline
{Total =30 Marks}

Problem 1. Tanner owns a car dealership and sells used cars. Tanner buys a used car at price $p and has no other costs.

(a) What is Tanner’s total cost if he sells 10 cars?
(b) What is Tanner’s total cost if he sells 20 cars?
(c) What is Tanner’s total cost if he sells y cars, TC(y)?
(d) What is Tanner’s average cost function, AC(y)?
(e) For every additional car Tanner sells, by how much do his costs increase? (f) What is Tanner’s marginal cost function, MC(y)?
(g) Draw Tanner’s average and marginal costs curves if p20.

Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producing a kitchen chair at each of the two plants is given here. The cost of producing Q1 chairs at Aynor is: 25Q1+2.5Q12+100 and the cost of producing Q2 kitchen chairs at Spartanburg is: 75Q2+2.5Q22+150. Andalus needs to manufacture a total of 40 kitchen chairs to meet an order just received. How many chairs should be made at Aynor, and how many should be made at Spartanburg in order to minimize total production cost? If required, round your answers to the nearest whole number. Round intermediate calculations to two decimal places.

Aynor

Spartanburg

Total cost $