Copy and paste the following data into Excel:

a.   Run OLS to determine the demand function as P = f(Q); how much confidence do you have in this estimated equation? Use algebra to invert the demand function to Q = f(P).

b.   Using calculus to determine dQ/dP, construct a column which calculates the point-price elasticity for each (P,Q) combination.

c.   What is the point price elasticity of demand when P=$210.00? What is the point price elasticity of demand when P=$185.50?

d.   To maximize total revenue, what would you recommend if the company was currently charging P=$201.60? If it was charging P=$185.50?

e.   Use your first demand function to determine an equation for TR and MR as a function of Q, and create a graph of P and MR on the vertical and Q on the horizontal axis.

f.    What is the total-revenue maximizing price and quantity, and how much revenue is earned there? (Round your price to the nearest cent, your quantity to the nearest whole unit, and your TR to the nearest dollar.) Compare that to the TR when P = $210.00 and P = $185.50.

Exercise 3-09

The trial balance for Pioneer Advertising is shown below.

Assume the following adjustment data.

Prepare the adjusting entries for the items above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

1. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years. Pretax accounting income $800,000 Excess tax depreciation (480,000) Litigation accrual 70,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income 60,000 Interest income from New York municipal bonds (20,000) Taxable income $430,000

1. Excess tax depreciation will reverse equally over a four-year period, 2021-2024.

2. It is estimated that the litigation liability will be paid in 2024.

3. Rent revenue will be recognized during the last year of the lease, 2024.

4. Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2024.

(a) Prepare a schedule of future taxable and (deductible) amounts.

(b) Prepare a schedule of the deferred tax (asset) and liability at the end of 2020.

(c)   Since this is the first year of operations, there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit).

(d)   Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020.

If possible, calculate total profits given a price of $80, an average total cost of $30, and an output of 5.

If price is above average total cost, is the firm making a profit or loss and should it operate or shut down?

Suppose that a firm is making a profit of $50 million operating at 50,000 units of output. At that level of output, marginal revenue is $1,000 and marginal cost is $1,200. What, if anything, should the firm do? Explain.

What does the marginal revenue curve of a perfectly competitive firm look like?

If a business has revenue of $100,000, explicit costs of $30,000, and implicit costs of $20,000, what are the economic profits?

What kind of economic profits will a perfectly competitive firm make in the long run equilibrium?

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:

In March, the school budgeted for 1,770 students and 74 courses. The school's income statement showing the actual results for the month appears below:

Required:

Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Question 1

The following information pertains to the Satyam Company for the year ending December 31, 2019.

REQUIRED

1. Prepare a COGM statement for year end

2. Prepare an income statement [ assume interest tax rate to be 17%] for year end

Question 1

The following information pertains to the Satyam Company for the year ending December 31, 2019.

$

Hours

Revenue

40,000

Interest payable

2300

Purchases of direct materials

12,000

Wages [factory]

5500

Beginning direct material

2850

Indirect Materials

5,000

Supplies expense [factory]

3,500

Supplies [factory]

9540

Depreciation of factory machines

3500

Depreciation of factory Plant

2300

Depreciation of shop

2,000

Unearned revenue

5620

Selling commission

1200

Marketing costs

4200

Wages [Store]

6,000

Insurance expense [shop]

2300

Prepaid insurance Expense [store]

1450

Supplies expense [store]

5,000

Utilities [store]

2,500

Direct Labor Hours

1800

Hourly Rate for direct labour

14

Direct materials inventory Dec 31 2019

7,000

Work in process Jan 1 2019

3,000

Sales Return/ allowances

2100

Rent revenue

5,000

Work in process Dec 31 2019

5,000

Sales Discounts

3,000

Finished Goods Inventory Jan 1 2019

3,000

Finished Goods Inventory Dec 31 2019

2500

REQUIRED

Prepare a COGM statement for year end

Prepare an income statement [ assume interest tax rate to be 17%] for year end

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:

In March, the school budgeted for 1,860 students and 83 courses. The school's income statement showing the actual results for the month appears below:

Required:

Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)