1. This table provides information on costs and output per hour of a small business producing t-shirts. Assume these are all the costs of this business. Fill in the table and answer the related question:

2. Suppose the market price of a t-shirt (marginal revenue) is $10. What is the profit maximizing output of this shop? What is the profit?
3. Would you predict entry or exit to happen in this industry in the long run? Write the word entry or exit only.
4. Find the shutdown point and the break-even point of this firm.
5. Now suppose that the price of a t-shirt decreases to $8. What is the profit maximizing level of output now? What is the profit? Should this firm continue producing or should it shut down?Find the shutdown point and the break-even point of this firm.
6. The fixed costs of this firm suddenly increase by $40 per hour. How does this change the initial (price=$10) profit maximizing output? What is the profit now?

You pool together two different marketing surveys to see what the willingness to pay for a product is. Survey one has a mean of $20, with standard deviation of 5, and 45 people were surveyed. Survey two has a mean of 30, with standard deviation of 10, and 50 people were surveyed. The null is no difference. The test-statistic, when computed, is 6.06. Would you reject the null?

Provide a brief description of 7 plus Seven series and the main character of the series.

Question

Suppose you are given a 7 digit number which is a UPC. Prove that if a mistake is made when scanning the number, causing one digit to be read incorrectly, then you will be able to tell that an error has been made.

Extra information.

A number is a Universal Product Code (UPC) if its last digit agrees with the following computations:

• The sum of the odd position digits (not including the last) is M. That is we add the first digit to the third digit to the fifth digit etc.

• The sum of the even position digits (not including the last) is N. •

c = (3M + N)%10.

• If c = 0 then the check digit is 0.

• If c 6= 0, then the check digit is 10 − c.

An example with number 1231242.

1) you add all odd-positioned digits except the last one:

M=1+3+2=6

2) add all even positioned digits, not including the last one:

N=2+1+4=7

3) c=(3M+N)%10=(6*3+7)%10=5

4) the check digit is 10-5=5

So 1231242 is not a UPC.

However, if we change the last digit to be 5, then it will be UPC. That is 1231245 is a UPC

CP 7–4
Koss Co. Ltd. began operations on January 1, 2018. It had the following
transactions during 2018, 2020, and 2021.
2018 Dec. 31 Estimated uncollectible accounts as $5,000 (calculated
as 2% of sales)
2020 Apr. 15 Wrote off the balance of N. Lang, $700
Aug. 8 Wrote off $3,000 of miscellaneous customer accounts
as uncollectible
Dec. 31 Estimated uncollectible accounts as $4,000 (1½% of
sales)
2021 Mar. 6 Recovered $200 from N. Lang, whose account was
written off in 2020; no further recoveries are expected
Sept. 4 Wrote off as uncollectible $4,000 of miscellaneous
customer accounts
Dec. 31 Estimated uncollectible accounts as $4,500 (1½% of
sales).
CHAPTER SEVEN / Cash and Receivables First US Edition
Required:
1. Prepare journal entries to record the above transactions.
2. Assume that management is considering a switch to the balance
sheet method of calculating the allowance for doubtful accounts.
Under this method, the allowance at the end of 2021 is estimated
to be $2,000. Comment on the discrepancy between the two
methods of estimating allowance for doubtful accounts.

This​ year, Midland Light and Gas​ (ML&G) paid its stockholders an annual dividend of

​$2.50

a share. A major brokerage firm recently put out a report on​ ML&G predicting that the​ company's annual dividends should grow at the rate of

5​%

per year for each of the next seven years and then level off and grow at the rate of

3​%

a year thereafter.

​(Note​:

Use four decimal places for all numbers in your intermediate​ calculations.)a. Use the​ variable-growth DVM and a required rate of return of

8.60​%

to find the maximum price you should be willing to pay for this stock.b. Redo the​ ML&G problem in part ​a, this time assuming that after year​ 7, dividends stop growing altogether​ (for year 8 and​ beyond,

g=0​).

Use all the other information given to find the​ stock's intrinsic value.

c. Contrast your two answers and comment on your findings. How important is growth to this valuation​ model?

a. Using the​ variable-growth DVM and a required rate of return of

8.60​%,

the maximum price you should be willing to pay for the stock is

​$nothing.

​(Round to the nearest​ cent.)

Net Present Value

A project has estimated annual net cash flows of $6,250 for seven years and is estimated to cost $45,000. Assume a minimum acceptable rate of return of 10%. Use the Present Value of an Annuity of $1 at Compound Interest table below.

Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value.

"Business Expenditures and Deductions" Avery has always wanted to own his own business. Last year, he took the leap and opened a pet store in a nearby city. He leases the store. He incurred start-up costs and large inventory costs for buying food in bulk. He had to purchase three large tables and a machine that moves the food to higher shelves for storage. He even hired five people: a groomer, two clerks, a stock person, and a bookkeeper. Unfortunately, his bookkeeper has accounting experience but no tax experience. Now, he is lost. How does he handle the start-up costs? What kinds of assets can he depreciate? What kinds of records should he keep? What changes were implemented in the Tax Cuts and Jobs Act that impacted this area of the tax law?

A can company reports that the number of breakdowns per 8-hour shift on its machine operated assembly line follows a Poisson distribution with a mean of 1.5.

1. What is the probability of exactly three breakdowns on the midnight shift?
2. What is the probability of greater than two breakdowns in one hour?
3. What is the probability that the time between two successive breakdowns is at most three hours?
4. If two hours have gone by without a breakdown, what is the probability that a breakdown will occur in the next one hour?

We have been using the same set of data (Data Set One) in the notes to illustrate production and costs. I have provided Data Set One in both tables below. When costs were calculated in the notes, fixed costs were $200. By using the term fixed costs economists are only referring to the fact that a firm must pay this expense no matter how much output it produces or sells. An example of a fixed cost could be the rent a small store pays on the space it rents. The rent will be the same for the duration of the lease, no matter if the store sells I item or 500 items. It is helpful to know what will happen to costs if the price of the variable or fixed resource changes.

Problem Two - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the variable input (which is labor in this example) is not $50 but $55. I have created Table 2 for you to put your answers in. Assume that fixed costs remain at $230. When the price of a variable input changes which other costs will increase? Compare the costs you calculate for table two to the costs calculated in table one to find your answers.

TABLE TWO FOR ANSWERS TO PROBLEM TWO