You have a falafel cart and you sell falafel every weekday near Washington Square Park during lunch time. Your daily revenue is normally distributed with a mean of $200 and a standard deviation of $50.

(a) Suppose there is another location that might be worth switching to. You plan to experiment with selling there for awhile, and then use a hypothesis test to determine whether you should switch. If the new location has a normally distributed revenue with a true mean of 210 and a standard deviation of 50, how many days would you have to try selling there to have a power of 50%. Use an α = .05 (significance level).

(b) Suppose you try selling at another location for 16 days, and on average you sell $220 worth of falafel with a sample standard deviation of $36 Using an α = .05, test whether the new location is worth switching to.

Suppose that the cost of producing q appliances is c(q)=200-q+0.96q^2 and the demand function is given by q=400-25p.

1. Develop the total revenue, total cost (if not given), and profit functions. Explain these functions in few sentences.
2. Compute the point elasticity of demand.
3. Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic.
4. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result.
5. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results.
6. What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.
7. Discuss the results of 6, 7 and 8.

In this part, we assume that the supply function is given by, p=8+q

8. Find the price and the quantity at the equilibrium.
9. Calculate the consumer surplus.
10. Calculate the producer surplus.

Given the price elasticities and price changes for the following products A–E in the table below, show how much the quantity will change (indicating an increase or decrease) and what effect this will have on total revenue (indicating an increase or decrease). Round your answers to 1 decimal place.

Fixed costs are 45% of the cost of goods sold and 15% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Cups line were discontinued.

a. Prepare a differential analysis report for all three products.

The trial balance of Rollins Inc. included the following accounts as of December 31, 2021: Debits Credits Sales revenue 5,800,000 Interest revenue 39,500 Loss on sale of investments 20,000 Loss on debt investments 146,000 Gain on projected benefit obligation 255,000 Cost of goods sold 4,310,000 Selling expense 390,000 Restructuring costs 175,000 Interest expense 10,000 General and administrative expense 290,000 The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required: Prepare a 2021 single, continuous statement of comprehensive income for Rollins Inc. Use a multiple-step income statement format.

Ted’s Village has five governmental funds: a General Fund, a Debt Service Fund, and three special revenue fund. IT has no proprietary funds. The following information is available at December 31, 2019 for each of the funds. First, determine which of the funds are major funds. Then, prepare a balanace sheet in the appropriate format, showing the major funds, a total for the nonmajor funds, and a total for all government funds

Suppose the market demand function for a normal product is ? = ?? − ?, and the marginal cost of producing it is ?? = ?? , where, ? is the price of the product and ? is the quantity demanded and/ supplied.

a. Draw the demand curve and the marginal cost curve using price and marginal cost measure in vertical axis and quantity demanded and/ or supplied in horizontal axis.

b. How much would be equilibrium price and quantity supplied in the competitive market?

c. Calculate the consumer surplus, producer surplus and total surplus in competitive market structure.

d. Find the marginal revenue function of the product and the marginal revenue curve in the diagram drawn in part a.

e. How much would be equilibrium price and quantity supplied in the monopoly market?

f. Calculate the consumer surplus, producer surplus and total surplus in monopoly market structure.

g. Show that monopoly market allocation reduces social welfare compared to competitive market allocation.

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $213,724; income tax applicable to loss on discontinued operations $28,186, and unrealized holding gain on available-for-sale securities (net of tax) $23,100. Gain on sale of equipment $97,400 Cash dividends declared $153,000 Loss on discontinued operations 82,900 Retained earnings January 1, 2017 542,500 Administrative expenses 246,100 Cost of goods sold 894,100 Rent revenue 42,300 Selling expenses 322,400 Loss on write-down of inventory 61,700 Sales Revenue 2,013,200 Shares outstanding during 2017 were 90,400.

1. Prepare a multiple-step income statement.

2. Prepare a comprehensive income statement for 2017, using the two statement format.

3. Prepare a retained earnings statement for 2017.

In the town of Hooterville, all the downtown stores are identical and all the people who shop downtown are identical. The town can earn revenue in three ways: • It can charge each store a montly license fee. • It can charge an excise tax on the store’s merchandise. • It can charge shoppers to park on the streets (the only way to get downtown is to drive, so every shopper pays the parking fee). The town’s goal is to maximize its total revenue from all three sources. a) How big should the excise tax be? b) Suppose a court ruling requires the town to provide free parking. Now how big should the excise tax be? If necessary, you can answer in terms of labeled portions of graphs. If you do this, please be sure to say why these portions of your graph are relevant to the problem.

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $213,724; income tax applicable to loss on discontinued operations $28,186, and unrealized holding gain on available-for-sale securities (net of tax) $23,100. Gain on sale of equipment $97,400 Cash dividends declared $153,000 Loss on discontinued operations 82,900 Retained earnings January 1, 2017 542,500 Administrative expenses 246,100 Cost of goods sold 894,100 Rent revenue 42,300 Selling expenses 322,400 Loss on write-down of inventory 61,700 Sales Revenue 2,013,200 Shares outstanding during 2017 were 90,400.

1. Prepare a multiple-step income statement.

2. Prepare a comprehensive income statement for 2017, using the two statement format.

3. Prepare a retained earnings statement for 2017.