Problem A: A toy maker has enough wood to make 24 small toys or 6 large ones. In other words, the large toys require 4 times the amount of wood as the small toys. She has Time to make 16 of the Small toys or 8 of the Large toys. The Small toys sell for $15 each, while the Large toys bring $45 each. Find the combination of Small and Large toys that maximizes her Revenue dollars.

Let S= number of Small toys, L = number of Large toys, R = Revenue from sales, W = Wood used, and T = Time used.

1. Formulate the problem:

a. Explain in words what are your Decision Variables?

b. Formulate the Objective Function.

c. Formulate the Constraints.

2. Graph the constraints and show the Feasible Region.

b. Graph the Isorevenue line and show the solution Graphically.

c. State the coordinates of all the Corners Points

d. Find the solution by Corner Point Solution method.

The following information is related to Nash Company for 2017.

Nash Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Nash sold the wholesale operations to Rogers Company. During 2017, there were 547,900 shares of common stock outstanding all year.

1. Prepare a multiple-step income statement.

2. Prepare a retained earnings statement.

Quiz Company sells its product for $10 per unit. Variable costs are $6 per unit and fixed costs are $15,000 per week. During the third week of July, Quiz Company sold 5,000 units.

1. Determine the number of units Quiz Company must sell to earn operating income of $8,000.

2. Determine the sales revenue (in dollars) Quiz Company must generate to break even.

3. Determine the sales revenue (in dollars) Quiz Company must generate to earn operating income of $8,000.

4. Determine the margin of safety in units for the week.

5. Determine the margin of safety in dollars for the week.

6. Suppose Quiz Company increased spending for advertising by $2,500 per week. As a result, sales in the fourth week increased by $5,000 compared to the third (current) week.

Determine the operating income earned in the fourth week.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

Consider the following hourly demand and cost schedule for a firm facing a fixed price of $ 6.00 per unit. (Tπ, is Total Profit).

  Q    P             TR    MR    TFC       TVC          TC         MC           ATC          AVC         Tπ

  0    $6.00                                                               $2.00            

  1                                                           4              

  2                                                           6              

  3                                                           8             

  4                                                           11             

  5                                                           15                     

  6                                                          20             

7.                                                       26             

8                                                           33           

  9                                                           41           

10                                                       50

11                                                       60

1. Complete the columns for ATC, AVC, and MC as well as those for (TC), TVC, & TFC.  
2. Draw the curves for Demand, MR (Marginal Revenue), ATC, AVC, and MC, all in one diagram. Also draw the Total Revenue (TR), Total Cost (TC), TVC, and TFC in a second diagram right below the first one.

3. Determine, in order to maximize profit, how many units should this firm produce and why?
4. Calculate the total profit at the profit-maximizing level and demonstrate it graphically and geometrically in the diagrams wherever applicable.

Why does sharecropping continue to exist as opposed to laborers renting
land and paying for the rent with the proceeds of their harvest?
Sharecropping is a farming system in which owners of the land allow
others to farm it and then the harvest is split, with some portion (let's say
half) going to the laborer and some to the land owner.  Renting land (the
"English system") is an alternative in which laborers pay a fixed monetary
rent and then keep all of the proceeds of their production.  For hundreds of
years commentators have pointed out that sharecropping lowers overall
investment and effort and that renting both generates more revenue for
owners and, on average, more revenue for laborers due to the harvest
generally being much larger.  However, when prices drop significantly for
agricultural outputs, rents can exceed the total value of output under the
English system.  Given that in the English system rent returns more money
to landowners and on average generates more income for laborers
than sharecropping, why is sharecropping still so common?

Problem 4-1

The following information is related to Flint Company for 2017.

Flint Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Flint sold the wholesale operations to Rogers Company. During 2017, there were 463,100 shares of common stock outstanding all year.

Prepare a multiple-step income statement.

Prepare a retained earnings statement.

Use the following Adjusted Trial Balance and Statement of Retained Earnings to prepare the CLASSIFIED BALANCE SHEET for Hang in There Company for April 30, 2020

Hang in There Company

Statement of Retained Earnings

April 30, 2020

Retained Earnings, May 1, 2019                   $18,200

Net Income for the Year         10,200

Dividends0        

Retained Earnings, April 30, 2020                  $28,400

For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).

1. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $74,000 in cash along with equipment having a $34,000 value in exchange for common stock.
2. On May 21, Elegant Lawns purchases office supplies on credit for $360.
3. On May 25, Elegant Lawns receives $8,200 cash for performing landscaping services.
4. On May 30, Elegant Lawns receives $1,400 cash in advance of providing landscaping services to a customer.

A coffeehouse sells a pound of coffee for ​$8.25. Expenses are ​$3 comma 500 each​ month, plus ​$3.50 for each pound of coffee sold. ​(a) Write a function​ R(x) for the total monthly revenue as a function of the number of pounds of coffee sold. ​(b) Write a function​ E(x) for the total monthly expenses as a function of the number of pounds of coffee sold. ​(c) Write a function ​(Rminus​E)(x) for the total monthly profit as a function of the number of pounds of coffee sold. ​(a) The revenue function is ​R(x)equals nothing. ​(Simplify your answer. Use integers or decimals for any numbers in the expression. Do not include the​ $ symbol in your​ answer.) ​(b) The expense function is ​E(x)equals nothing. ​(Simplify your answer. Use integers or decimals for any numbers in the expression. Do not include the​ $ symbol in your​ answer.) ​(c) The profit function is ​(Rminus​E)(x)equals nothing. ​(Simplify your answer. Use integers or decimals for any numbers in the expression. Do not include the​ $ symbol in your​ answer.)