A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets Total cost (thousands) Price per bracelet 100 $215 $8100 200 $420 $7500 300 $625 $6100 400 $820 $5100 500 $1015 $4200 600 $1205 $3600 (a) Of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $ (c) According to the estimates in part (b), will increasing the production level higher than 400 bracelets increase profit? Yes, increasing production will increase profit. No, increasing production will not increase profit.

Gyrdir ehf. manufactures and sells one type of leather belts for 2,500 kr. piece. Production for each belt, all variable, amounts to 1,000 kr. Gyrdir is planning to rent a booth on the forthcoming fashion show in the Exhibition Hall. Gyrdir ehf. can choose between the following rental terms for the sales booth:

1. to pay only a fixed rent before the show, kr. 501,000.

2. to pay a fixed amount of kr. 400,000 and an additional 10% of sales revenue.

3. to pay 20% of the sales revenue but no fixed amount.

Requested:

a) What does Gyrdir ehf. have to sell many multiple belts to reach a break-even point, based on

which of these three options?

b) What choice should Gyrdir ehf. choose if he expects to sell 800 belts at the show? Show

calculations to justify the choice.

1. Marilyn Stone owns the mineral rights to 640 acres in Coleman County, Texas.  Marilyn leases the property to Sunrise Oil & Gas (“Sunrise”) reserving a 1/5 royalty interest.  Sunrise drills a successful well and begins producing oil.  Before the first month’s production Sunrise assigns a 5% ORRI to its engineer, Tom Jacobs.  In January 2019 Sunrise incurred $45,000 of lease operating expenses, produced and sold 10,000 BBLs of oil at a price per BBL of $52; the severance tax is 5%. Sunrise assumes the responsibility of distributing revenue and paying severance taxes.

REQUIRED (you must show your work):

1. What is the gross revenue to each party?
2. What portion of the tax does each party pay?
3. Record the sale for the working interest owner, royalty interest owner, and ORI owner.

Indiana Co. began a construction project in 2021 with a contract price of $161 million to be received when the project is completed in 2023. During 2021, Indiana incurred $37 million of costs and estimates an additional $81 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.

In 2022, Indiana incurred additional costs of $57 million and estimated an additional $40 million in costs to complete the project. Indiana (Do not round your percentage calculated):

A. Recognized $25.50 million gross profit on the project in 2022.

B. Recognized $6.00 million gross profit on the project in 2022.

C. Recognized $27.00 million gross profit on the project in 2022.

D. Recognized $5.46 million gross profit on the project in 2022.

A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five hectares of land show diminishing returns, because some are better suited for wheat production than others. The first hectare can produce 1000 bushels of wheat, the second hectare 900, the third 800, and so on. Fill in the table given below to answer the following questions. How many bushels will each of the farmer’s five hectares produce? How much revenue will each hectare generate? What are the TR and MR for each hectare?

If the marginal cost of planting and harvesting an hectare is $7,000 per hectare for each of the five hectares, how many hectares should the farmer plant and harvest?

_________hectares

In C programming language,

After studying gross annual revenues of Broadway shows over a 20-year period, you model the revenue as a function of time:

        R(t) = 203.265 X (1.071)^t, where R is in millions of dollars and t is the years since 1984. Create the following functions to implement this model:

        revenue - calculates R given the input parameter t. R is an output parameter.

        predict - predicts the year in which revenues (in millions) will first equal or exceed the value of the input parameter. For example, predict(200) would return 1984. The year should be returned through an output parameter.

Write a main () function that calls predict () to determine when revenues will likely exceed $1 trillion. Then create an output file that contains a table of estimated revenues for all the year from 1984 through the year when revenues should exceed $1 trillion.

Greenpoint Corporation is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Suppose the appropriate discount rate is 12 percent. Determine the net working capital spending for Year 4 then calculate the NPV of the project. What is the project NPV? Year 0 Year 1 Year 2 Year 3 Year 4 Investment $118,000 Sales revenue $75,000 $75,800 $77,000 $78,500 Operating cost 18,000 18,600 19,600 21,000 Depreciation 29,500 29,500 29,500 29,500 Net working capital spending 10,000 4,000 2,000 1,000 ? $30,532.66 $29,744.78 $28,568.41 $27,520.33 $26,244.80

Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,230 units, but its actual level of activity was 5,180 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Actual results for May:

The spending variance for manufacturing overhead in May would be closest to: