What does it mean for its shareholders when a company is applying most of its revenue to the repayment of loans?

a. If the marginal revenue is less than the marginal cost, what should a profit-maximizing company do?

b. In a perfectly competitive graph, how does one calculate the economic profit?

c. What is the shutdown point in a perfectly competitive firm? '

d. Briefly, what is the difference between economies of scale and diseconomies of scale? Why is it important to the firm?

e. Given the following total cost function TC(q) = 1000 + 13q. Find the fixed cost, variable cost, average total cost, and the marginal cost. How do you know that these costs are in the short-run? Explain.

Upon adoption of the new revenue standard, a company wrestled with a growth versus net accounting policy judgement and ultimately rationalized that it should likely continue its current position unless there was a compelling reason in the guidance to change.

Identify one or more biases that could be at play, then explain.

Suppose Stuart Company has the following revenue and expenses for 2017: Revenues of $8,800,000 Cost of Goods Sold of $2,640,000 Depreciation Expenses of $900,000 Income Taxes of $1,508,000 Interest Expenses of $110,000 Other Expenses of $500,000 Sales, General, & Administrative Expenses of $880,000 Create an income statement with amounts in thousands What is the value of Earnings Before Interest & Taxes? Please specify your answer in the same units as the income statement.

AN EXAMPLE OF A MULTINATIONAL COMPANY ENTERING A NEW FOREIGN DIRECT INVESTMENT BASED ON REVENUE MOTIVES

Franscioso Company sells several products. Information of average revenue and costs is as follows:

               Selling price per unit                        $28.50

               Variable costs per unit:

                      Direct material                               $5.25

                      Direct manufacturing labour     $1.15

                      Manufacturing overhead            $0.25

                      Selling costs                                    $1.85

               Annual fixed costs                        $110,000

The Franscioso Company contribution margin ratio is  1.102:1.1.425:1.0.298:1.0.637:1.0.702:1. .

The Franscioso Company break-even in sales dollars is  $99,819.$77,193.$369,128.$172,684.$156,695. .

The Franscioso Company break-even in units is  5,500 units.3,502 units.2,709 units.6,059 units.12,952 units. .

The table below provides revenue and cost information for KB & Children Company Ltd, a perfectly competitive firm that produces leather shoes.

1. Complete the above table.
2. What is the firm’s total cost of producing 5000 pairs of shoes?
3. What is the average revenue of the firm? Is this amount equal to the firm’s marginal revenue? Explain.
4. At what output level and price will the firm maximize its economic profits?
5. Using the information provided by the above table, draw a diagram showing the firm making short run economic profits.

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rev: 06_08_2015_QC_CS-17166

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1. Prepare Laredo Luggage’s schedule of cost of goods manufactured for the year

2. Prepare Laredo Luggage’s schedule of cost of goods sold for the year

3. Prepare Laredo Luggage’s income statement for the year.