Below is a table containing weekly demand and supply numbers for No-Hyper Chocolate bars for children. As an employee at Sugar Shack Kids Candy Shoppe you want to impress your boss with your economics learning and explain to her at what price the store can maximize sales and profits of the chocolate bar. You will also explain elasticity to show your boss that this is a well thought out pricing strategy. P-$10, $9, $8, $7, $6, $5, $4, $3, $2, $1, $0 Q- 0, 10, 30, 50, 70, 90, 110, 130, 150, 170, 190.  i) Using the midpoint formula (not simple), a) calculate elasticity of demand if the price is changed from $1 to $2. b) and again if changed from $5 to $4. (2+2 marks)

ii) Calculate and list the total revenue per price point in the TR column in the table above. The selling price should be $ _________ (approximately) per bar which will generate a total revenue of $ ____________. (approximately).

iii) In the graph below label and then draw the demand curve and indicate using dashed lines a change in price from $6 to $7 and comment on changes you see. (2+2 marks)

Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the company’s accountant to prepare next year’s budget. Ms. Jasper estimates that sales will increase 6 percent for peaches and 11 percent for oranges. The current year’s sales revenue data follow:

Based on the company’s past experience, cost of goods sold is usually 65 percent of sales revenue. Company policy is to keep 10 percent of the next period’s estimated cost of goods sold as the current period’s ending inventory. (Hint: Use the cost of goods sold for the first quarter to determine the beginning inventory for the first quarter.)

Required

Prepare the company’s sales budget for the next year for each quarter by individual product.

If the selling and administrative expenses are estimated to be $630,000, prepare the company’s budgeted annual income statement.

Ms.Jasper estimates next year’s ending inventory will be $34,200 for peaches and $57,700 for oranges. Prepare the company’s inventory purchases budgets for the next year, showing quarterly figures by product.

Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs to complete as of year-end 5,810,000 1,826,000 0 Billings during the year 2,030,000 4,444,000 3,526,000 Cash collections during the year 1,815,000 3,900,000 4,285,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Cost incurred during the year $ 2,490,000 $ 3,815,000 $ 3,945,000 Estimated costs to complete as of year-end 5,810,000 4,130,000 0 rev: 09_15_2017_QC_CS-99734 Next Visit question mapQuestion 5 of 8 Total 5 of 8 Prev

Prepare entries under cost and equity methods, and prepare a memorandum.  

PH.4 (LO 2) Writing Wellman Company acquired 30% of the outstanding common stock of Grinwold Inc. on January 1, 2022, by paying $1,800,000 for 60,000 shares. Grinwold declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2022. Grinwold reported a net income of $800,000 for the year.

a. Total dividend revenue for 2022 $60,000
b. Revenue from stock investments $240,000

Instructions

a. Prepare the journal entries for Wellman Company for 2022, assuming Wellman cannot exercise significant influence over Grinwold. (Use the cost method.)
b. Prepare the journal entries for Wellman Company for 2022, assuming Wellman can exercise significant influence over Grinwold. (Use the equity method.)
c. The board of directors of Wellman Company is confused about the differences between the cost and equity methods. Prepare a memorandum for the board that explains each method and shows in tabular form the account balances under each method at December 31, 2022.

Paul D. Kimmel. Accounting: Tools for Business Decision Making, 7th Edition (p. H-18).

Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows:

Required:

a. Compute the profit for each product using plantwide allocation.

b. Maria, the manager of Department T, was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used, Department B would have had a rate of 50 percent of direct labor cost and Department T would have had a rate of 200 percent of direct labor cost. Recompute the profits for each product using each department’s allocation rate (based on direct labor cost).

Chapter 10.9, Problem 1Q. How do you calculate the firms maximum profit for problem 9.1 in Chapter 10? Please show calculation.

The Jam Factory makes boutique jams that it sells in specialty stores in two different cities. In City 1, the daily inverse demand function is p1 = 12 - 0.5Q1 and the marginal revenue function is MR1 = 12 - Q1. In City 2, the inverse demand and marginal revenue functions are p2 = 20 - Q2 and MR2 = 20 - 2Q2. The firm’s cost function is C(Q) = 10 + 6Q, where Q = Q1 + Q2. Thus, the firm’s marginal cost of production is 6 per unit.

a. Create a spreadsheet with columns for Q1, Q2, p1, p2, MR1, MR2, and MC. Put the values 1 to 12 in increments of 1 in the Q1 column and put the same values in the Q2 column. Fill in the appropriate formulas in the other cells, noting that the MC column has the value 6 for each quantity. The Jam Factory price discriminates by charging a different price in each city. Find the profit-maximizing quantities and prices. Verify that the marginal revenues are the same in each city at the profit-maximizing quantities. Determine the firm’s profit.

1. Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the company’s accountant to prepare next year’s budget. Ms. Jasper estimates that sales will increase 6 percent for peaches and 11 percent for oranges. The current year’s sales revenue data follow:

   	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
   Peaches	$	238,000		$	258,000		$	318,000		$	258,000		$	1,072,000
   Oranges		419,000			469,000			589,000			399,000			1,876,000
   Total	$	657,000		$	727,000		$	907,000		$	657,000		$	2,948,000

   Based on the company’s past experience, cost of goods sold is usually 70 percent of sales revenue. Company policy is to keep 20 percent of the next period’s estimated cost of goods sold as the current period’s ending inventory. (Hint: Use the cost of goods sold for the first quarter to determine the beginning inventory for the first quarter.)

   Prepare the company’s sales budget for the next year for each quarter by individual product.

2. If the selling and administrative expenses are estimated to be $670,000, prepare the company’s budgeted annual income statement.

3. Ms.Jasper estimates next year’s ending inventory will be $35,100 for peaches and $56,000 for oranges. Prepare the company’s inventory purchases budgets for the next year, showing quarterly figures by product.

This article discusses the European Commission’s (EC) decision to instruct Ireland to recover taxes from Apple Inc. to the tune of $ 15.3 billion dollars which was basically, as per EC, to correct the tax break extended by Ireland to Apple. Even though Apple didn’t do anything illegal,Ireland did extend these breaks to Apple when the existing tax rates were already low amounted to “favoritism” which may have harmed other economies at the expense of providing gain to Apple as well as Ireland.I believe this is an example of retrospective taxation which would send a wrong message to the business community because there wouldn’t be any sanctity of tax breaks given by any sovereign nation in the European Commission.

Ireland was selfish and naive to give Apple Inc. tax breaks while the rest of many businesses missed out from the benefits. Today the majority of this generation utilizes at least one Apple product that ultimately contributes to Apple's revenue .I believe they deserve to benefit from the tax revenue as they can clearly afford it . This decision that was made will teach future companies to avoid making the same mistake Apple did with Ireland.

DO YOU AGREE WITH THE ABOVE STATEMENT? EXPLAIN

PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 36,000 56,000 28,000 56,000 Each T-shirt is expected to sell for $11. The purchasing manager buys the T-shirts for $4 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 21 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $72,000 per quarter plus 10 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expenses for each quarter. 5. Complete the budgeted income statement for each quarter. rev: 10_28_2016_QC_CS-67902

Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 200 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows.

Required:

a. Compute the profit for each product using plantwide allocation.
b. Maria, the manager of Department T, was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used, Department B would have had a rate of 150 percent of direct labor cost and Department T would have had a rate of 300 percent of direct labor cost. Recompute the profits for each product using each department’s allocation rate (based on direct labor cost).