Suppose that class OrderList has a private attribute double cost[100] which hold the cost of all ordered items, and a private attributes int num_of_items which hold the number of items ordered. For example, if num_of_items is 5, then cost[0], cost[1], ..., cost[4] hold the cost of these 5 items. Implement the member function named total_cost which returns the total cost of this OrderList.

A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has a marginal cost of $15, the average total cost of $10, and a fixed cost of $200 (a) What is its profit? (b) What is its average revenue? (c) What is its average variable cost?

1. Kiki Box Company produces cardboard boxes that are sold in bundles. The market is perfectly competitive, with boxes currently selling for price of $100 per bundle. Kiki’s total and marginal cost, where Q is measured in number of bundles per year, are:

TC = 2,000,000 + 0.001Q²

MC = 0.002Q

1. Calculate Kiki’s profit maximizing quantity.   
2. Calculate total profits earned by this firm.
3. Identify the fixed cost.

Joy Co.'s recorded inventory information for the month of August is as follows:

a. Determine the total cost of ending inventory according to FIFO method.
$

b. Determine the total cost of ending inventory according to LIFO method.

$

Joy Co.'s recorded inventory information for the month of August is as follows:

a. Determine the total cost of ending inventory according to FIFO method.
$

b. Determine the total cost of ending inventory according to LIFO method.
$

Habelt Company's labor cost per unit is $45 (3 hours x $15 per hour). For the month of May, Habelt Company had 3,600 hours of direct labor with an hourly cost of $40.50 per hour and made 1,300 units of finished product. Find total, price, and quantity variance.

Figure out what the total, price, and quantity variances are from the given information.

Shore Company reports the following information regarding its production cost.

Compute product cost per unit under absorption costing.

Multiple Choice

$62.00

$65.29

$53.00

$26.00

$27.00

By shutting down when price is less than average variable cost at the profit-maximizing level of output, a perfectly competitive firm will limit its losses to its:

A) total fixed costs. B) total variable costs. C) marginal costs. D) total costs.

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies.

For years, Worley believed that the 9% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $32,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $32,000 cost of goods sold that Worley incurred serving each hospital.)

1

2

3

4