Marginal Revenue

The management of Ditton Industries has determined that the daily marginal revenue function associated with selling x units of their deluxe toaster ovens is given by the following, where R'(x) is measured in dollars/unit.

R'(x) = −0.1x + 40

(a) Find the daily total revenue realized from the sale of 230 units of the toaster oven.

(b) Find the additional revenue realized when the production (and sales) level is increased from 230 to 330 units.

Part 4: Calculate the total revenue and marginal revenue for each output level. Your solution will need to be in a table.

Part 5: Apply the economic decision rule to determine the monopolists profit maximizing output level. Once you have determined the output level, identify the price the monopolist will charge.

Part 6: Calculate the consumer surplus, producer surplus and deadweight loss under the monopoly.

Part 7. Assume that the monopolist can perfectly price discriminate. What price does the monopolist charge each consumer? Write you answers in the table below.

Part 8: If the monopolist can perfectly price discriminate, what is consumer surplus, producer surplus and the deadweight loss?

Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers

Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period April 2–30 are as follows:

Required:

1. Insert the following balances in the general ledger as of April 1:

After completing the recording of the transactions in the journals in part 3, total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Cash Receipts begins with “R”. For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

2. Insert the following balances in the accounts receivable subsidiary ledger as of April 1:

After completing the recording of the transactions in the journals in part 3, post to the accounts receivable subsidiary ledger in chronological order, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt. If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Cash Receipts begins with “R”. For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees.

4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for April. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer’s account before recording a cash receipt.

5. Total each of the columns of the special journals and post the individual entries and totals to the general ledger. Insert account balances after the last posting.

If an amount box does not require an entry, leave it blank.

6. What is the sum of the customer balances?
$

Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger?
   

7. Would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable?

Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers

Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period April 2–30 are as follows:

Required:

1. Insert the following balances in the general ledger as of April 1:

After completing the recording of the transactions in the journals in part 3, total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Revenue Journal begins with “R”. For example journal/ Cash Receipts/ Revenue Journal, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

2. Insert the following balances in the accounts receivable subsidiary ledger as of April 1:

After completing the recording of the transactions in the journals in part 3, post to the accounts receivable subsidiary ledger, in chronological order and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt.

If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Revenue Journal begins with “R”. For example journal/ Cash Receipts/ Revenue Journal, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees.

4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for April. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer’s account before recording a cash receipt.

5. Total each of the columns of the special journals and post the individual entries and totals to the general ledger. Insert account balances after the last posting.

If an amount box does not require an entry, leave it blank.

Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger?
   

7. Would an automated system omit postings to a controlling account as performed in part (5) for Accounts Receivable?

f. Refer to Apple’s revenue recognition footnote. In particular, when does the company recognize revenue for the following types of sales?

i. iTunes songs sold online.

ii. Mac-branded accessories such as headphones, power adaptors, and backpacks sold in the Apple stores. What if the accessories are sold online?

iii. iPods sold to a third-party reseller in India.

review this list of the four types of adjustments: Prepaid Expense, Unearned Revenue, Accrued Revenue, Accrued Expense Then, follow these steps to participate in the discussion forum: Please select one type of adjustment. Define the term giving a detailed explanation. Provide a specific adjusting journal entry and explain it.

1. Interpret the tables trend for revenue, expense & dividend year by year comparing both company?

1. Using the following cost and revenue information for Prestige Worldwide (PWW), determine how the costs, revenue, and cash flow items would be affected by the possible exchange rate scenarios for the pound: (1) £ = $1.20, (2) £= $1.25, and (3) £= $1.30. Would Prestige Worldwide be favorably or unfavorably affected by a weakening pound? Why? Explain. Assume that U.S. sales will be unaffected by the exchange rate. Also, assume that £ earnings will be remitted to the U.S. parent at the end of the period. Lastly, ignore possible tax effects.

Please simply complete the table below (populate the table with the USD cash flows for each account under each scenario). You may instead choose to insert a copy of an Excel generated table below – however, if you decide to use Excel, I require you to turn in an electronic copy of your spreadsheet (in addition to pasting the table into the quiz). Failure to do both (paste table into quiz and turn in spreadsheet) will constitute an incomplete answer. (30 points).

The revenue and cost information for Odessa Outfitters inc. for 2015 follows:

Sales Revenue       560,000

COGS (at standart) 342,000

DM price variance      1,000 F

DM quantity variance 6,000 F

DL rate varinace          4,000U

DL efficiency variance 2,000 F

Overhead controllable variance 3,500U

Overhead volüme variance    8,000f

a)What is gross profit at standard?

b)What is gross profit actual?

c)Write journal entries for all variance accounts assuming all units are produced and sold in the same period.