The market demand for economics books is given by P = 12 − Q

(a) Initially there is only one firm (a monopolist) operating in this market. The total cost of producing books for the firm is T C = 2Q. How many books will he/she sell in this market? What will be market price?

(b) Now, suppose a second firm enters the market. The two firms are now Cournot duopolists and they will produce quantities Q1 and Q2 respectively, where Q1 +Q2 = Q. Their total cost functions are T C1 = 2Q1 and T C2 = 2Q2. What are the firms’ reaction functions? How much will each firm produce? What will be the total quantity sold in the market and at what price?

(c) Is the total quantity sold in the market different in part (a) and (b)? Give a short reason for your answer

The following information is available for Keller Corporation's new product line:

Selling Price per unit: $15

Variable Manufacturing costs per unit of production : $8

Total annual fixed manufacturing costs : $25,000

Variable administrative costs per unit of production : $3

Total annual fixed selling and administrative expenses : $15,000

There was no inventory at the beginning of the year. During the year 12,500 units were produced and 10,000 units were sold.

a) Determine the cost of ending inventory, assuming Keller uses variable costing.
b) Determine the cost ending inventory, assuming Keller uses absorption costing.

c) Total variable costs charged to expense for the year, assuming variable costing is used, is

d)Total fixed costs charged to expense for the year, assuming absorption costing is used, is

Fill in the assets section of the pro forma balance sheet.  ​(Round all items to the nearest​ dollar.)

Fill in the liabilities and common equity section of the pro forma balance sheet.  ​(Round all items to the nearest​ dollar.)

A clothing brand plans to use a model to decide the print run (offer) of
a new exclusive garment to maximize your profits. By policies
Your supplier can only produce one package with one of the following
quantities 5,10,25,50 or 100 items with the following prices per pledge
respectively 15,9,7,5,6,5,5 Additionally, it is known that the curve of
manda of its exclusive products tends to be
D (x) = 100/x + 5
(a) Calculate the total cost of each garment package
(b) Determine the equilibrium price for each of the packages
(c) Calculate the total profits generated by each package when sold
completely at equilibrium price
(d) Calculate the net gains by subtracting the total cost from the total
of the package
(e) Determine which package is the most convenient

Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data:

Total assets turnover: 1.9
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25%
Total liabilities-to-assets ratio: 40%
Quick ratio: 1.00
Days' sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.50

Do not round intermediate calculations. Round your answers to the nearest whole dollar.

The Jerry Company produces product X. Each product sells for RM20.00. Unit costs are as follows:
RM
Direct material 3.90
Direct labour 1.40
Variable factory overhead 2.10
Variable selling and administrative expenses 1.60

Total fixed factory overhead is RM70,000 per year and total fixed selling and administrative expense is RM100,000. During the recent year, 20,000 units were sold.

Required:
a) Calculate the variable cost per unit, total fixed cost and the contribution margin per unit.


b) Calculate the breakeven point in units and in ringgit.                                            

c) Calculate the margin of safety in units for the recent years.                                  

d) Prepare Jerry’s current year income statement.                                                    

e) How many units Jerry should sell in order to earn a profit of RM100,000?           
(Total: 15 Marks)

Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data:

Total assets turnover: 2.7

Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 21%

Total liabilities-to-assets ratio: 60%

Quick ratio: 1.15

Days sales outstanding (based on 365-day year): 33 days

Inventory turnover ratio: 5.0

Round your answers to the nearest whole dollar.

Partial Income Statement Information

Sales $

Cost of goods sold $

Balance Sheet

Cash $

Accounts payable $

Accounts receivable $

Long-term debt $ 50,000

Inventories $

Common stock $

Fixed assets $

Retained earnings $ 100,000

Total assets $ 400,000

Total liabilities and equity $

Balance Sheet Analysis

Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data:

Total assets turnover: 1.3
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30%
Total liabilities-to-assets ratio: 50%
Quick ratio: 1.20
Days' sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.50

Do not round intermediate calculations. Round your answers to the nearest whole dollar.

Sales: 520,000

Cost of Goods sold: 364,000

Cash:

Accounts Receivable: 520,000

Inventories:

Fixed Assets:

Total Assets: $400,000

Accounts Payable:

Long-term debt: 50,000

Common Stock:

Retained Earnings: 100,000

Total Liabilities & Equity:

Please calculate the following based on the facts provided:

a. Gross Margin Ratio: Net sales = $1,000,000.00 & Cost of Goods Sold = $200,000.  

b. Return on assets ratio (ROA): Net Income = $350,000 & Average Total Assets = $2,500,000

c. Return on Equity (ROE): Net Income = $350,000 & Shareholder's Equity = $5,000,000.

d. Customer Acquisition Cost (CAC): Sales/Marketing Costs = $450,000 & number of new customers 1,000.

   e. Current Liquidity Ratio: Current Assets = $1,200,000 & Current Liabilities= $750,000

   f. Quick Liquidity Ratio (aka Acid Test Ratio): Total Current Assets = $1,300,000, Inventory = $175,000 & Current Liabilities = $600,000.

   g. Debt to Equity Ratio: Total Liabilities = $650,000 & Total Equity = $1,700,000.