Avanti Ltd produces two mixers. Stand mixer and hand mixer. The selling price of a Stand mixer is $500, and the selling price of a hand mixer is $150. The variable cost per unit for the stand mixer is $300 and the variable cost per unit of the hand mixer is $ 100. The direct labour hour requirement and demand for the two products are:
| stand mixer | Hand mixer | ||
| Monthly demand | 500 | 1000 | |
| Direct Labour hour required per unit | 2.5 hours | 1.5 hours | |
Avanti Ltd's production capacity is 1500 direct labour hours. The optimal profit that Avanti can get from these products is :
|
$ 108, 300 |
||
|
$ 128, 300 |
||
|
$ 100,000 |
||
|
None of the above |
What is the correct option?
In: Accounting
1.) A monopolist sells its good in two markets denoted by N and S. The demand for the good in market N is PN = 100 − QN. The demand for the good in market S is PS = 60 − QS. The marginal cost of producing the good is $20. For your calculations below assume zero fixed costs. a (15). Derive the monopolist’s two-part pricing scheme that allows 1st-degree price discrimination. Provide the fixed fee, the per-unit price, and profit in each market. Calculate also the total welfare across the two markets. b (10). Derive the monopolist’s block-pricing scheme that generates the same profit as the two-part pricing scheme you obtained in (a).
In: Economics
Total amount of credit or debit:
Maximum amount of loss:
Maximum amount of profit:
Break-even stock price of this spread:
Total amount of credit or debit:
Maximum amount of loss:
Maximum amount of profit:
Break-even stock price of this spread:
In: Finance
In: Finance
A chocolate bar manufacturer with stores in most country towns and cities is interested in trying to estimate how daily sales are influenced by the price of their product. To do this, the company randomly chooses 6 stores in country towns and cities and offers the chocolate bar at different prices.
Using chocolate bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
|
City |
Price ($) (X) |
Sales (Y) |
|
Toowoomba |
1.30 |
100 |
|
Broken Hill |
1.60 |
90 |
|
Bendigo |
1.80 |
90 |
|
Kalgoorlie |
2.00 |
40 |
|
Launceston |
2.40 |
38 |
|
Port Augusta |
2.90 |
32 |
The value, to three decimal places, of the test statistic to test the hypothesis
H0: β1 = 0
H1: β1 ≠ 0
is
In: Statistics and Probability
| Reacher Technology's EBIT was $40 million last year and is not expected to grow (g=0) and pays out 100% of earnings as dividends annually. The firm is currently financed with all equity and it has 10 million shares outstanding and is considering recaptizing its equity with debt where new debt would be issued and proceeds used to buyback stock. Show the firm's market value of operations, MV of debt, MV of equity, shares outstanding, and stock price for each level of debt the firm is considering. | |||||||
| EBIT= | $ 40.00 | FCF= | |||||
| Debt/Value | WACC | MV | MV of Debt | MV of Equity | #Shares | Stock | |
| Price | |||||||
| 0% | 10 | ||||||
| 10% | |||||||
| 20% | |||||||
| 30% | |||||||
| 40% | |||||||
| 50% | |||||||
| 60% | |||||||
| 70% | |||||||
In: Finance
You would like to buy shares of a particular company. The current bid quote is $30.50 and the current ask quote is $30.75. If the stock trade fee is $10 per trade, then you would need $3,085 to buy 100 shares. True or False
If the average PE ratio for the electrical utility industry is 21.5 and earnings per share for Midwest Energy is $2.34, then the current price of Blazer's stock is more than $50.68 but less than $50.94 True or False
If the current price of a stock is $50 per share, next year's dividend is expected to be $2.10 per share and dividends are expected to grow 3.5 percent per year then the required return is more than 7.85 percent. True or False
In: Finance
1.Jones works for a consulting firm and gets remunerated a
monthly wage of $500.00. He always spends all the $500.00 on
buying
5kg of potatoes only which he buys at $100/kg. One day,
amidst of
Covid 19 pandemic, the price of potatoes increased to $120/kg.
Due
to the snap change in the price, Jones supervisor approached
him
and gave him two options to choose from:
i). Reduce Jones wage to $400.00 and supplying him with 30kg
of
potatoes at $80/kg monthly.
ii). Increase his wage to $600.00
As a smart student of Principles of Economics and within a page,
kindly
advise Jones to make a justified rational choice.
please help with this Economics
In: Economics
Consider the production information below:
A. Complete the following table:
|
# of L |
Output/Week |
MPL |
Price of Output |
MRPL |
|
0 |
0 |
$10 |
- |
|
|
1 |
100 |
$10 |
||
|
2 |
180 |
$10 |
||
|
3 |
240 |
$10 |
||
|
4 |
280 |
$10 |
||
|
5 |
300 |
$10 |
||
|
6 |
310 |
$10 |
||
|
7 |
315 |
$10 |
B. If this firm would have to pay $500 a week, how many workers would the firm hire? Explain how you come up with your answer.
C. If the demand for the products increase such that product price rises to $15 per unit, would the firm hire more/less workers? Explain how you come up with your answer.
In: Economics
| Labor | Q | Total Fixed Cost | Total Variable Cost | Total Cost | Marginal Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost |
| 0 | 0 | 25 | 0 | |||||
| 1 | 4 | 25 | 25 | |||||
| 2 | 10 | 25 | 50 | |||||
| 3 | 13 | 25 | 75 | |||||
| 4 | 15 | 25 | 100 | |||||
| 5 | 16 | 25 | 125 |
(a) Complete the blank columns.
(b) Assume the price of this product equals $10. What’s the profit-maximizing output (q)? Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit by producing q where P=MC.
(c) What is the profit?
In: Economics