1. The long run average total cost shows what happens to average (per unit) total cost as a firm grows in size (adds more capital or increases its plant size). True or false?

2. In the short run, at least one input is variable and one input is fixed. True or false?

3. If marginal product is less than average product, average product must be falling. True or false?

4. In the long run, all inputs are variable. True or false?

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $6,800 420 February $9,699 610 March $7,940 710 April $9,587 670 May $8,290 540 June $7,331 410 July $9,290 630 August $7,250 370 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6499 + ($2.03 x Employee Hours) Required: Assume that 665 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations: 1. Calculate total variable labor cost for September. Round your answer to nearest whole number.

how much should I invest, and what should be the total fixed cost,total variable cost, expected revenue and pay back period for my start-up on onlin gaming?

A company, Megah Setia, has the following cost structure:

1. Is it a long run cost structure? Explain your answer briefly.
2. Complete the appropriate numbers in the column of “Average fixed cost”.
3. Complete the appropriate numbers in the column of “Average total cost”.
4. Complete the appropriate numbers in the column of “marginal cost”.

Assume Domino's Pizza has the following monthly revenue and cost functions:

Total Revenue= $10.00x Total Cost= $16000+$4.00x

a. Prepare a graph illistrating Domino's cost-volume-profit relationship. The vertical axis should range from $0 to $72,000, in increments os $12,000. The horizontal axis should range from 0 units to 6,000 units, in increments of 2,000 units.

b. Prepare a graph illustrating Domino's profit-volume relationship. The horizontal axis should range from 0 units to 6,000 units, in increments of 2,000 units.

c. When is it most appropriate to use a profit-volume graph?

A resort hotel annual sales revenue of $1,000,000, Variable costs of $350,000, and a fixed costs of $570,000. The fixed costs include $80,000 a year for land rental lease.

a) Calculate the hotel's breakeven point.

b) If the owners had an equity investment in the hotel of $1,200,000. What level of sales revenue is required for an operating income (BT) representing a 15% return on their investment?

c). In a renegotiation of the land lease, the landowner has offered management an alternative to the fixed lease currently being paid. The alternative in the lease currently being paid. The alternative is 10% of the resort's contribution margin.

i. If management accepts this proposal, what would be the resort hotel's new breakeven point?

ii. Calculate the indifference point.

iii. Explain whether management should accept this proposal. if next year's total sales revenue is expected to be $1,200,000?

iv. Should management accept this proposal if next's total sales revenue is expected to be $1,400,000

.:PS. I need all the C ( this includes " i " ; " ii " ; " iii " & " iv "

Question 3: Pricing Multiple Product Versions (show all work)

Casey’s company produces two versions of a software program, “Advanced” and “Basic”.

There are 3 segments of customers, the Managers, Executives and Students, and the respective segment sizes are 2000, 1000 and 5000. The per-unit cost of producing the Advanced version is $20, while the per-unit cost of producing the Basic version is $10. The willingness to pay (WTP) for each version, by segment, is given as follows:

WTP (Managers) = $100 (Advanced) and $55 (Basic)

WTP (Executives) = $62 (Advanced ) and $45 (Basic)

WTP (Students) = $45 (Advanced ) and $30 (Basic)

If Casey sells only the Advanced version, what is the optimal price it should charge and the profits? (Answer: $45, Profit=$200K)

If Casey decides to sell both versions, what are the optimal prices it should charge for each version? What is the optimal profit of the company? Assume that customers will buy if consumer surplus is at least 0 and that they need at least $1 extra in consumer surplus to switch between product versions. (Answer: Basic @ $30, Advanced @ $74, Profit=$228K)

1. Hotel has submitted an income statement for the end of the month that shows a net profit of $10,000. You will need to show that income statement based on the following given information. Food revenue and room’s revenue are the only two forms of revenue and food revenue is exactly the same as room revenue. Direct operating expenses for food is 50% of food revenue and direct operating expenses for rooms is 35% of room’s revenue. Marketing expenses are 20% of Total revenue, rent is 7%, A&G is 6%, Utilities are 8% Depreciation is 5%, Interest is 5% and Net Profit is 5%. Please put together a common-size income Statement using the correct format for the Hotel and make sure that you calculate the correct taxes (the only other additional expenses on the income statement) .