Suppose the process of producing lightweight parkas by Polly’s Parkas is described by the function q = 10K^0.7(L - 40)^0.3 where q is the number of parkas produced, K the number of computerized stitching-machine hours, and L the number of person-hours of labor. In addition to capital and labor, $15 worth of raw materials is used in the production of each parka.

1. Write total cost function of producing parkas in terms of the quantity produced, and labor and capital used in production.

2. By minimizing cost subject to the production function, derive the cost-minimizing demands for K and L as a function of output (q), wage rates (w), and rental rates on machines (r). Use these results to derive the total cost function: that is, costs as a function of q, r, w, and the constant $10 per unit materials cost.

(Hint: to find the cost function: step 1: set up the minimization problem, with total cost as the objective function, and the constraint production to achieve the quantity q. step 2: Solve the minimization problem using the Lagrange to find the optimal L and K that would achieve the minimum cost. step 3: Substitute the optimal L and K back into the total cost function.)

Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:

a. Identify the cost of quality classification for each activity.

b. Prepare a cost of quality report. Assume that the sales for the period were $4,000,000. If required, round percents to one decimal place.

c. The category with the fewest number of quality activities is  . Nearly fifty percent of the quality activity costs are  . The highest single cost is warranty claims, which is a(n)  . Disposing of scrap, emergency equipment maintenance, and scrap reporting are all  .

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Review of microeconomic theory of firm costs and firm behavior:

a) In the long-run, all input costs are                            [choose]                       ["minimized", "maximized", "fixed", "variable"]         .

b) In the long-run, a firm's profit is equal to total revenue minus total cost. So to maximize profits a firm will want to maximized the difference between                            [choose]                       ["quantity", "price", "marginal cost", "average variable costs"]         and average total cost.  

c) If a firm’s goal is to maximize profits in a market where they are price takers (that is, they cannot influence market price), in the long-run they will produce the quantity that                            [choose]                       ["maximizes", "minimizes", "compensates for", "is equal to"]         their average total cost.

d) In the long-run, and with decreasing returns to scale, firms will need to                            [choose]                       ["lower prices", "advertise", "raise prices", "shift their supply curve"]         in order to increase production to higher quantities.  

17. Rowan Company has four different categories of inventory. The quantity, cost, and market value for each of the inventory categories are as follows:

The company carries inventory at lower-of-cost-or-market applied to the entire stock of inventory in the aggregate. How would the implementation of the lower-of-cost-or-market rule impact the elements of the company’s financial statements?

Rowan Company has four different categories of inventory. The quantity, cost, and market value for each of the inventory categories are as follows: Item Quantity Cost Per Unit Market Value Per Unit 1 220 $ 4.40 $ 4.60 2 130 $ 6.20 $ 6.00 3 100 $ 10.00 $ 9.25 4 25 $ 20.50 $ 19.00 The company carries inventory at lower-of-cost-or-market applied to the entire stock of inventory in the aggregate. How would the implementation of the lower-of-cost-or-market rule impact the elements of the company’s financial statements? a. Have no effect on total assets or stockholders’ equity. b. Decrease total assets and stockholders’ equity by $94.50. c. Increase total assets and stockholders’ equity by $94.50. d. Decrease total liabilities and stockholders’ equity by $94.50.

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is:

The direct operating costs of the departments (including both variable and fixed costs) are:

Required:

1. Determine the total cost of P1 and P2 using the direct method.

2. Determine the total cost of P1 and P2 using the step method.

3. Determine the total cost of P1 and P2 using the reciprocal method.

(Do not round intermediate calculations.)

Please answer all the questions

Spider-Man and Spider-Woman are planning to have children in the near future. Spider-Man is able to spin webs (S) and cling to walls (C), whereas Spider-Woman can spin webs but cannot cling to walls. If both of these traits are inherited in a dominant manner (i.e., the dominant trait will always mask the recessive trait), Spider-Man is heterozygous for each trait, and Spider-Woman is heterozygous for the web-spinning trait...

What is Spider-Man's genotype?

Spider-Man and Spider-Woman are planning to have children in the near future. Spider-Man is able to spin webs (S) and cling to walls (C), whereas Spider-Woman can spin webs but cannot cling to walls. If both of these traits are inherited in a dominant manner (i.e., the dominant trait will always mask the recessive trait), Spider-Man is heterozygous for each trait, and Spider-Woman is heterozygous for the web-spinning trait...

What is Spider-Woman's genotype?

Spider-Man and Spider-Woman are planning to have children in the near future. Spider-Man is able to spin webs (S) and cling to walls (C), whereas Spider-Woman can spin webs but cannot cling to walls. If both of these traits are inherited in a dominant manner (i.e., the dominant trait will always mask the recessive trait), Spider-Man is heterozygous for each trait, and Spider-Woman is heterozygous for the web-spinning trait...

What gametes does Spider-Man produce?

Spider-Man and Spider-Woman are planning to have children in the near future. Spider-Man is able to spin webs (S) and cling to walls (C), whereas Spider-Woman can spin webs but cannot cling to walls. If both of these traits are inherited in a dominant manner (i.e., the dominant trait will always mask the recessive trait), Spider-Man is heterozygous for each trait, and Spider-Woman is heterozygous for the web-spinning trait...

What gametes does Spider-Woman produce?

Spider-Man and Spider-Woman are planning to have children in the near future. Spider-Man is able to spin webs (S) and cling to walls (C), whereas Spider-Woman can spin webs but cannot cling to walls. If both of these traits are inherited in a dominant manner (i.e., the dominant trait will always mask the recessive trait), Spider-Man is heterozygous for each trait, and Spider-Woman is heterozygous for the web-spinning trait...

What percentage of their offspring will not be able to spin webs but will be able to cling to walls?

Spider-Man and Spider-Woman are planning to have children in the near future. Spider-Man is able to spin webs (S) and cling to walls (C), whereas Spider-Woman can spin webs but cannot cling to walls. If both of these traits are inherited in a dominant manner (i.e., the dominant trait will always mask the recessive trait), Spider-Man is heterozygous for each trait, and Spider-Woman is heterozygous for the web-spinning trait...

What percentage of their offspring will be heterozygous for both traits?

XYZ Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction Equipment were 50,000 units, while 400,000 units of Laboratory Equipment were manufactured. The sales price per unit was $650 and $475, for Construction and Laboratory Equipment, respectively. The total direct materials cost per unit was $95 and $75 for Construction and Laboratory Equipment, respectively, while director labor cost per unit was $75 and $55 for Construction and Labor Equipment, respectively. Total overhead costs were $49,500,000. XYZ Corporation decided to use ABC to distribute overhead costs to its products, thus the total overhead cost can be classified in three activities: Setups with a cost of $500,000, Engineering with a total cost of $44,000,000 and Packaging with a total cost of $5,000.000. The activity bases and usage per product is as follows: # of setups for Setup activity, # of machine hours for Engineering activity and # of shipments for the Packaging activity. The Construction Equipment required 400 setups, 300,000 machine hours and 50,000 shipments. The Laboratory Equipment required 100 setups, 300,000 machine hours and 200,000 shipments.

What is the activity rate for the setup up activity? (round to two decimal places, do not include the comma or dollar sign).

What is the activity rate for the engineering activity? (round to two decimal places, do not include commas or dollar sign)

What is the activity rate for the packaging activity? (round to two decimal places, do not include commas or dollar sign)

What is the direct cost per unit for the Construction Equipment? (round to two decimal places, do not include commas or dollar sign)

What is the total direct cost per unit for the Laboratory Equipment? (round to two decimal places, do not include commas or dollar sign)

What is the total overhead cost per unit for the Construction Equipment if ABC is used? (round to two decimal places, do not include commas or dollar sign)

What is the total overhead cost per unit for the Laboratory Equipment if ABC is used?  (round to two decimal places, do not include commas or dollar sign)

What is the total cost per unit for the Construction Equipment if ABC is used? (round to two decimal places, do not include commas or dollar sign

What is the total cost per unit for the Laboratory Equipment if ABC is used? (round to two decimal places, do not include commas or dollar sign)

What is the profit per unit for the Construction Equipment if ABC is used? (round to two decimal places, do not include commas or dollar sign)

What is the profit per unit for the Laboratory Equipment if ABC is used? (round to two decimal places, do not include commas or dollar sign)

Construct two graphs lined up one on top of the other.

the upper graph should reflect a total cost curve and the bottom graph should reflect the average cost curve and the marginal cost curve.

Add a total revenue curve to the upper graph and a marginal revenue curve to the lower graph such that the firm is not making a profit or suffering a loss.