Justine is a smartphone developer, her free app currently has 500 000 users. She is thinking of making a premium version. She assumes that for each 5$ increase in price the number of paying customers decreases by a factor of 1/2, i.e. half of her current paying customers will stop paying for her app.
(a) If pp is the price in dollars and CC is the number of paying customers, find the exponential function
C=f(p)
that models this situation.
(b) Her total revenue
R
is given by the number of paying customers times the price of the app, or
R=p⋅f(p).
Give the formula for dR/dp.
(c) Suppose that Justine is selling her app for 10$$. Compute dR/dp|p=10. Given this result, should Justine increase or decrease the price to get more revenue. Give a brief justification involving units.
In: Economics
Imagine you have a farm with three plots of land. There is one in the valley, one on the hill and one in the swamp. Each plot can either grow corn or wheat. Assume that planting, harvesting, etc. is free. The quantity of each crop on each plot is given by the following table.
Plot Corn Wheat
Valley 200 300
Hill 150 450
Swamp 100 100
a. Draw a PPF for your farm. Indicate all slopes and intercepts.
b. If the price of corn is $5/unit and the price of wheat is $2/unit, what should you produce on each plot in order to maximize revenue? (We haven't said the word "revenue" yet but it means the total market value of the crops.)
c. If the price of corn is $2.50 and the price of wheat is $2, what do you want to produce on each plot?
In: Economics
| Insurance expense | $10,000 |
| Sales returns and allowances | 22,400 |
| Bad debt expense | 6,000 |
| Accounts payable | 81,000 |
| Accounts receivable | 108,590 |
| Allowance for doubtful accounts | 8,500 |
| Accumulated depreciation – equipment | 27,740 |
| Depreciation expense | 1,200 |
| Interest revenue | 2,100 |
| Cash | 80,970 |
| Common stock (10,000 shares outstanding) | 100,000 |
| Cost of goods sold | 598,550 |
| Dividends declared | 18,000 |
| Equipment | 139,450 |
| General expenses | 114,250 |
| Dividends payable | 2,000 |
| Sales discounts | 23,000 |
| Interest expense | 5,600 |
| Paid-in capital in excess of par | 110,000 |
| Marketable Securities | 12,000 |
| Merchandise inventory | 154,250 |
| Prepaid insurance | 11,225 |
| Salaries expense | 42,100 |
| Retained earnings | ? |
| Dividend Revenue | 10,000 |
| Salaries Payable | 12,350 |
| Sales | 983,900 |
| Selling expenses | 139,210 |
Needed
Adjusted trial balance
A classified balance sheet
Post close trial balance
In: Accounting
The following transactions were selected from the records of Evergreen Company:
July 12 Sold merchandise to Wally Butler, who paid the $1,140 purchase with cash. The goods cost Evergreen Company $670.
16 Sold merchandise to Claudio’s Chair Company at a selling price of $5,140 on terms 3/10, n/30. The goods cost Evergreen Company $3,570.
19 Sold merchandise to Otto’s Ottomans at a selling price of $3,070 on terms 3/10, n/30. The goods cost Evergreen Company $1,970.
23 Received cash from Claudio’s Chair Company for the amount due from Jul-16.
31 Received cash from Otto’s Ottomans for the amount due from July Jul-19. Find the revenue for the month of ended july 31.
Find the Revenue for the month ended july 31
In: Accounting
1. Under which condition a firm can recognize its sales?
Select one:
a. Seller has executed substantially all the requirements of the agreement
b. The risk of the product has passes
c. Revenue must be earned by transferring the risk and fulfilling the agreement, and Revenue must be realized or realizable
d. Received cash or cash equivalent
2. When the firm received a notice from a customer that he is not able to make the payment, the firm decides to write off the accounts receivable. Which one should be the correct journal entry?
Select one:
a. Debit- Allowance for Uncollectible Receivables , Credit- Accounts Receivable
b. Debit- Bad Debt Expense, Credit- Allowance of Unclolletible Receivables
c. Debit- Bad Debt Expense, Credit- Accounts Receivables
d. Debit- Accounts Receivables, Credit- Allowance for Uncollectible Receivables
In: Accounting
The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $50 million on January 1, 2021 to Saxton-Bose
Corporation. The bonds mature on December 31, 2030 (10 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Required:
1. to 3. Prepare the journal entries to record the
purchase of the bonds by Saxton-Bose on January 1, 2021, interest
revenue on June 30, 2021 and interest revenue on December 31, 2021
(at the effective rate). (Enter your answers in whole
dollars. If no entry is required for a transaction/event, select
"No journal entry required" in the first account
field.)
In: Accounting
The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $50 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2022 (5 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.):
Required:
1. to 3. Prepare the journal entry to record the
purchase of the bonds by Saxton-Bose on January 1, 2018, interest
revenue on June 30, 2018 and interest revenue on December 31, 2018
(at the effective rate). (Enter your answers in whole
dollars. If no entry is required for a transaction/event, select
"No journal entry required" in the first account
field.)
In: Accounting
Cash = $1,505,000; Rent Receivable = $250,000; Prepaid Expenses = $100,000; Building = $10,500,000; Prepaid Insurance = $150,000; Insurance Expense = $350,000; Unearned Revenue = $50,000; Accounts Payable = $100,000; Accrued Liabilities = $45,000; Salaries Expense = $550,000; Shareholders’ Capital = $12,310,000. In addition, the company had the following transactions during Q2 that ended on June 30, 2016: The company’s total rental revenue for Q2 FY2016 was $2,500,000. Of this amount $2,000,000 was collected during Q2 FY2016. $230,000 of the Rent Receivable outstanding at the beginning of the quarter was collected during Q2 FY2016. The company incurred total operating expenses of $850,000 for Q2 FY2016. All these expenses were paid except $50,000.
What is the total current assets at the beginning of Q2 FY2016?
What is the total current liabilities at the beginning of Q2 FY2016?
Present the balance sheet at the end of Q2 2016.
In: Accounting
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U- shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by MC(q) = q + 2 and market demand is given by Q= 1000 - 20P
a. Find the long-run equilibrium in this market and determine the consumer and producer surplus (in this case, the areas of the triangles).
b. Suppose instead there was a single supplier whose marginal cost curve is
MC(Q)= 1 Q+2 100
i) From the above expression for market demand, determine the monopolist’s average revenue curve.
ii) Frompart(i),findthemonopolist’stotalrevenuecurve.
iii) If the monopolist’s marginal revenue curve is MR(Q) = 50 ? Q , what is 10
its optimal supply?
iv) Explain why this outcome is inefficient in comparison to the competitive
outcome.
In: Economics
|
Account title |
Amount(Debit) |
Amount(Credit) |
|
Cash |
19,470 |
- |
|
Accounts Receivable |
6,922 |
- |
|
Prepaid rent |
2,280 |
- |
|
Equipment |
18,050 |
- |
|
Accumulated Depreciation |
- |
4,895 |
|
Notes Payable |
- |
5,700 |
|
Accounts Payable |
- |
5,472 |
|
Common Stock |
- |
20,000 |
|
Retained Earnings |
- |
11,310 |
|
Dividends |
3.000 |
- |
|
Service Revenue |
11,590 |
|
|
Salaries Expense |
6,840 |
|
|
Rent Expense |
2, 260 |
- |
|
Depreciation Expense |
145 |
- |
|
Interest Expense |
83 |
- |
|
Interest Payable |
83 |
|
|
Total |
59,050 |
59,050 |
Instructions:
Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet after taking the following adjustments.
In: Accounting