Using the following table of costs for a firm, what is the marginal cost of producing the 3rd unit?

Using the following table of costs, what is the firm's average total cost at 2 units of output?

Suppose a company incurs the following costs:

Labor $800

Equipment $400

Materials $300

It owns the building, so it doesn’t have to pay the usual $900 in rent

(a) What is the total accounting cost?

(b) What is the total economic cost?

(c) How would accounting and economic costs change if the company sold the building and then leased it back?

A local car wash uses 15 containers of soap during each of the 50 weeks they operate per year. Each container costs $25, setup (ordering) costs are $18 and holding costs for each unit is $2.5 per year. Assume the car wash currently purchases 160 containers per order. What is the total cost before and after using the optimal EOQ quantity (assuming there is no safety stock)? Answer question as (total cost before optimal quantity, total cost with optimal quantity).

Note: Choose the answer that is closest to your results.

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 67,000 Total fixed manufacturing overhead cost $ 227,800 Variable manufacturing overhead per direct labor-hour $ 6.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 25 Total direct labor-hours 100 Direct materials $ 660 Direct labor cost $ 6,700 The unit product cost for Job P951 is closest to:

$235.00

$332.00

$232.00

$83.00

Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity

  Expected Activity

Activity Cost Pools   Activity Measures Estimated Estimated Cost Product T8   Product P4 Total  

Labor-related   DLHs $127,500 3,600   1,800 5,400

Production orders Orders 60,110 700 400 1,1004

Order size MHs 940,160   4,000 3,100    7,100 Total: $ 1,127,770

The total overhead applied to Product P4 under activity-based costing is closest to

A) $880,050

B) 410,502

C) 474,860

D) 1,000,270

Suppose that as a financial manager you have collected the following information on your company.

The firm is considering undertaking a project that costs $250,000 with an expected return of 13.5%. Not having enough existing capital, how would you recommend going about obtaining the additional funds? Use the current WACC in your analysis. Discuss how the current WACC will change based on the type of financing chosen.

Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below:

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

What is the product margin for Product M5 under activity-based costing?

1. A monopolist maximizes profits at the output at which

A) total revenue is at its greatest, assuming that the firm has both fixed and variable costs.

B) price equals marginal cost.

C) price exceeds marginal cost by the greatest amount.

D) none of the above

2. Which of the following is true of marginal revenue earned by a monopolist that charges a single price to all its consumers?

A) ​Marginal revenue earned by a monopolist is equal to the average cost incurred by it.

B) ​Marginal revenue earned by a monopolist is more than the price of its product.

C) ​Marginal revenue earned by a monopolist is less than the price of its product.

D) Marginal revenue earned by a monopolist is equal to the average revenue earned by it.

E) ​Marginal revenue earned by a monopolist is equal to price of its product.

3. For a monopolist, if price is above average total cost, the monopolist is

A) earning an economic profit.

B) taking an economic loss.

c) minimizing total fixed costs.

d) minimizing total variable costs.

Martinez Company’s relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows:

Amount Per Unit

Direct materials $ 5.40

Direct labor $ 2.90

Variable manufacturing overhead $ 1.60

Fixed manufacturing overhead$ 3.40

Fixed selling expense $ 2.40

Fixed administrative expense $ 2.10

Sales commissions $ 1.10

Variable administrative expense $ 0.55