Suppose there is a perfectly competitive industry where all the firms are identical with

identical cost curves. Furthermore, suppose that a representative firm’s total cost is given by the equation

where is the quantity of output produced by the firm. You also know that the TC=200 +q^2+q where q is the quantity of output produced by the firm. You also know that the market demand for this product given by the equation P= 1000-2Q where Q is the market quantity. In addition, you are told that the market supply curve is given by the equation P=100 +Q

a. What is the equilibrium quantity and price in this market given this information?

b. What is the firm’s MC equation?

c. What is the firm’s profit maximizing level of production?

d. What is the total revenue?

e. What is the total cost?

f.What is the profit at this market equilibrium?

Great Eastern Inns has a total of 2,300 rooms in its chain of motels located in eastern Canada. On average, 45% of the rooms are occupied each day. The company’s operating costs are $39 per occupied room per day at this occupancy level, assuming a 30-day month. This $39 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 30%. A total of $1,074,330 in operating cost was incurred during February.

1. Estimate the variable cost per occupied room per day. (Assume 30 days in a month. Do not round intermediate calculations and round your final answer to 2 decimal places.)

2. Estimate the total fixed operating costs per month.

Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information: % complete % complete units DM conversion work in process, April 1 17,000 46% 77% units completed during April 46,000 work in process, April 30 23,000 29% 14% The cost of beginning work in process and the costs added during April were as follows: DM Conversion Total cost work in process, April 1 $121,279 $203,056 $324,335 costs added during April 363,285 227,619 590,904 total costs 484,564 430,675 915,239 Calculate the total cost of the handling department's work in process inventory at April 30 using the FIFO process costing method.

Capital Asset Pricing: XYZ Inc. has the following information:

Total Market Value of Long-Term Debt: $900,000; Weight 37%

Total Market Value of Preferred Stock: $30,000; Weight 1.2%

Total Market Value of Common Stock: $1,500,000; Weight 61.7%

Tax Rate= 21% YTM on Bonds= 7.8%

Annual Preferred Dividend= $4.75

Preferred Stock Price= $41

Flotation Costs on Issuance of New Preferred Stock= 4%

Next Year’s Expected Common Stock Dividend= $2.25

Current Common Stock Price= $49

Expected Dividend Growth Rate= 6.5%

1) Compute the cost of preferred stock

2) Compute the cost of common stock

3) Compute the Weighted Average Cost of Capital (WACC)

Question 1 In March, Kelly Company had the following unit production costs: materials $12 and conversion costs $7. On March 1, it had no work in process. During March, Kelly transferred out 26,000 units. As of March 31, 3,000 units that were 41% complete as to conversion costs and 100% complete as to materials were in ending work in process.

Compute the total units to be accounted for. Total units =

Compute the equivalent units of production.

The equivalent units of production, Materails= Coversion Cost=

L Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process. Cost Reconciliation Schedule

Costs accounted for

Transferred out $

Work in process, March 31 Materials $ Conversion costs

Total costs $

Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:

                                           % complete      % complete
                                units         DM           conversion 
work in process, April 1        16,400        75%             66%
units started during April      56,000
work in process, April 30       47,600        82%             40%

The cost of beginning work in process and the costs added during April
were as follows:

                                 DM         Conversion       Total cost
work in process, April 1      $ 25,766       $ 90,794         $116,560
costs added during April       193,245        181,588          374,833
total costs                    219,011        272,382          491,393

Calculate the total cost of the handling department's work in process
inventory at April 30 using the FIFO process costing method.

John is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company such as random access memory (RAM) on a competitive market. In order to maximise profit in the short run, he employed an economist to estimate the demand curve, which he was able to use to derive the marginal revenue (MR) from his product as: ??=70−16?. The economist also derived the marginal cost function (MC) as: ??=6?−51.

(i) Find the total revenue function and deduce the corresponding demand equation.

(ii) Find the total cost function if the fixed cost is 400.

(iii)Determine the number of laptops that maximizes the company’s profit.

(iv)How much should the firm charge for one computer?

(v)Find the total profit at the profit maximizing level of output.

Satina Corporation's Department A has the following information:

Required: Complete the tables below using the weighted-average and FIFO methods

Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:

                                           % complete      % complete
                                units         DM           conversion 
work in process, April 1        18,000        38%             71%
units started during April      80,000
work in process, April 30       44,000        82%             47%

The cost of beginning work in process and the costs added during April
were as follows:

                                 DM         Conversion       Total cost
work in process, April 1      $ 51,764       $152,477         $204,241
costs added during April       191,452        232,125          423,577
total costs                    243,216        384,602          627,818

Calculate the total cost of the handling department's work in process
inventory at April 30 using the FIFO process costing method.

Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information: % complete % complete units DM conversion work in process, April 1 18,000 38% 71% units started during April 80,000 work in process, April 30 44,000 82% 47% The cost of beginning work in process and the costs added during April were as follows: DM Conversion Total cost work in process, April 1 $ 51,764 $152,477 $204,241 costs added during April 191,452 232,125 423,577 total costs 243,216 384,602 627,818 Calculate the total cost of the handling department's work in process inventory at April 30 using the FIFO process costing method.