Problem 1: A Fabrication Co. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A? Show work

A) $90,000 dollars

B) 90,000 units

C) $15,000 dollars

D) 15,000 units

E) 4,286 units

Please search online business press and find a recent article related to “Accrual versus Cash Accounting,” “Revenue Recognition,” or “Accounting Fraud.” Then please provide the webpage link of the article together with the answers to the following questions.

Question 1: How is your article of choice related to topics above and why you think it is interesting?

Question 2: What are the practical implications of this article?

The trial balance of Kelso Company had accounts with the following normal balances: Cash, $8,000; Accounts Receivable, $6,000; Equipment, $10,000; Accounts Payable, $9,000; Owner’s Capital, $15,000; Owner’s Drawings, $500; Service Revenue, $7,000; Rent Expense, $1,000; Salaries and Wages Expense, $3,000; and Advertising Expense, $2,500. In preparing the trial balance, the total in the debit column is

At its current level of production a profit-maximizing firm in a competitive market receives $11.50 for each unit it produces and faces an average total cost of $9.00. At the market price of $11.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 800 units. What is the firm's current profit? What is likely to occur in this market and why?

At its current level of production a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firm's current profit? What is likely to occur in this market and why?

1. Suppose faces an inverse demand curve ? = 25 − 2.5?, with total costs, ?? = 2.5?2. Therefore its profit function is ? = (25 − 2.5?)? − 2.5?2. It’s marginal revenue function then is ?? = 25 − 5? and its marginal cost curve is ?? = 5?. Solve for the the profit-maximizing level of output, Q*, the price at the profit maximizing level of output, P*, and the firm’s profits.

Explain - using supply and demand principles - the differences between player salaries across different professional sports. Use the concept of marginal revenue product of labor to explain how a "superstar" can get a higher salary than his or her teammates. What economic incentives do professional athletes have to use performance-enhancing drugs, even though they are illegal?

If a firm in a monopolistically competitive industry is profit-maximizing, it should choose its level of advertising such that the marginal revenue of an additional dollar of advertising:

a) Is equal to the elasticity of its demand curve minus 1

b) Is exactly $1

c) Increases revenues by $1

d) Is equal to 1 plus the elasticity of its demand curve

e) Is equal to the elasticity of its demand curve

If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then