Consider a monopoly with a sort run total cost of TC= 36+Q^2 - and marginal cost: MC=2Q - facing a market demand curve of P=36-Q.

QUESTION: Graph and calculate the consumer surplus, profit, and deadweight loss to welfare.

Steelcase Inc. has a robotic welder that cost $89,500. Shipping and site preparation cost $2000 and installation cost $700. At the end of the 4 th year of service, this robotic welder was traded in for a new robotic welder with a purchase price of $95,900, shipping and site preparation cost $2,300 and installation cost $800. The trade- in allowance for the old robotic welder was $32,000 for purchasing the new robotic welder.This equipment is a 7-year MACRS class.

a)What is the cost basis of the new robotic welder for computing the amount of depreciation for income tax purposes?

b)If instead of trading in the old robotic welder, Steelcase Inc. sold the old robotic welder on the open market for $32,000, then:

i) What is the cost basis of the newrobotic welder?

ii) For the sold old robotic welder, will Steelcase Inc. need to pay a gains tax or get a tax benefit and calculate the value (assume 21% tax rate).

Consider a monopolist with a total cost of TC=9+Q and marginal cost of $1 (MC=1). The monopolist faces a demand curve of P=11-Q.

1. Graph the monopolist

2. Find price and quantity that the monopolist charges.

3. Find the profit and consumer surplus.

4. Find the deadweight loss to welfare.

What are the cost incurred for the benefit of several business units called?

a-Direct cost

B-variable cost

C-product cost

D-indirect cost

1)Generally speaking, what is the difference between direct cost and indirect cost? Assume you are a manager, which one would concern you more when you are analyzing the cost of your product/service? Why?

2)Traditionally, in a manufacturing company, what is the most popular way to treat indirect cost? What is the advantage and disadvantage of that?

Choose a cost in your organization (or personal life). Now identify what drives that cost. Keep in mind that the cost driver is something that can be counted!

For instance, if I choose gasoline cost, my cost driver is the number of miles I drive to meet at clients' offices. At home, the cost driver for my electric bill is the number of people-days at my house - i.e. some months everyone is gone (low bill), and other times many houseguests makes for a high electric bill. What are your examples?

Cost Information and the Weighted Average Method

Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below.

Required:

1. Calculate the unit cost for December, using the weighted average method. Do NOT round interim calculations and, if required, round your answer to the nearest cent.
$ per equivalent unit

2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.

Cost of goods transferred out:

Reconciliation
Cost to account for:

3. What if you were asked to show that the weighted average unit cost for materials is the blend of the November unit materials cost and the December unit materials cost? The November unit materials cost is $3.53 ($60,000/17,000), and the December unit materials cost is $10.42 ($500,000/48,000). The equivalent units in BWIP are 17,000, and the FIFO equivalent units are 48,000. Calculate the weighted average unit materials cost using weights defined as the proportion of total units completed from each source (BWIP output and current output). Do NOT round interim calculations and, if required, round your answer to the nearest cent.
$ per unit

Use PWs to calculate the benefit/cost ratio of i=5% for a highway project. The first cost is $150,000 and the O&M costs are $5000 per year. There is no salvage value after 20 years. Time savings to users are worth $35,000 per year, and neighborhood disruption is a disbenefit of $10,000 per year. Is this project attractive?

13. What mistake might a business make if it confuses marginal cost and average cost?

14. How does adverse selection explain why it might be difficult to change the Affordable Care Act?

Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The cost and expenses of producing and selling 50,000 units of Product K are as follows:

Tidewater desires a profit equal to a 10% rate of return on invested assets of $1,285,000.

a. Determine the amount of desired profit from the production and sale of Product K.
$ 128,500

b. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 50,000 units of Product K.

c. Determine the markup percentage for Product K.
%

d. Determine the selling price of Product K. Round your answer to two decimal places.
$21.25

I'm having trouble with C.