A company sells a service with demand for service Q = 500 - P.
The cost of each service is $3000 + $100 per user of the service
1) What is the profit maximizing price the business will charge? How many people can use the service? What is the companys profit for each service?
2) The company decides to open up an upper market version of the service. Regular demand is shown as Q1 = 260 - 0.4P, and the upper market being Q2 = 240-0.6P.
The uppermarket version having a higher price, What price does the company charge the upper market service? What price does the company charge the regular service? Will the change reduce number of total custoemrs?
3) WIll the new price system provide profit for the company
4) What is the total change in consumer surplus with the price discrimination?
5) Will DWL be changed due to the price change?
In: Economics
Details of CPA Company are as follows:
Sales 5,000,000
Cost of Goods Sold 2,000,000
Interest Income reported 5,000
Operating Expense per PFRS 1,500,000
Warranty Expense 250,000
Actual Warranty Paid 200,000
Depreciation Expense per PFRS 200,000
Depreciation Expense per BIR 150,000
Doubtful Accounts 100,000
Accounting Income 400,000
Tax Rate 30%
1. How much is the Income Tax Expense of CPA Company?
2. How much is the Income Tax Payable (Current Tax Expense) of CPA Company?
3. Statement I : Future Taxable Difference is a Permanent Difference
Statement II : Future Deductible Difference is a Temporary Difference
Statement II : In a Direct Financing Lease the Lessor does not earn Dealers Income
In: Accounting
The Fan Cost Index (FCI) is a measure of how much it costs a family of four to attend a major league baseball game.
The frequency distribution and the histogram for the Fan Cost Index are given below:
|
FCI (Dollars) |
Frequency |
|
100-149.99 |
2 |
|
150-199.99 |
0 |
|
200-249.99 |
1 |
|
250-299.99 |
1 |
|
300-349.99 |
9 |
|
350-399.99 |
12 |
|
400-449.99 |
5 |
(a) Determine the shape of the distribution.
A. Right Skewed
B. Left Skewed
C. Normal
D. Uniform
(b) Determine if the mean or the median would be a better measure of center for this distrubution. If the mean is better, calculate the value. If the median is better, give the midpoint of the interval that contains it.
Select the correct choice below and fill in the answer box to complete your choice.
A. The median is a better measure of center for this distribution.
The midpoint of the interval that contains the median is $_______.
B. The mean is a better measure of center for this distribution.
The value of the mean is $_______.
In: Statistics and Probability
A company is trading in a fully depreciated old asset for a new one. Cost of the new asset is $5,000 with a 5 year life and straight-line depreciation will be used. The company receives a $500 allowance for the asset traded in. Additional sales revenue from the investment will be $2,100 and expenses of $400 (excluding depreciation). The company is in a 25% tax bracket. The payback period is:
a. 7.5 years
b. 8.33 years
c. 3.46 years
d. 2.95 years
34. Given the facts in question 53, the ARR is:
a. 17.8%
b. 23.3%
c. 8.9%
d. 8%
In: Accounting
Compare the cost minimization and the profit maximization approaches to the derivation of the transactions demand for money. What insights do we get for the transactions money demand from using the profit maximization approach that are not apparent from the cost minimization approach?
In: Economics
Nizar Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was Rs. 50,000 and at the end of the month was Rs. 40,000. The cost of goods manufactured for the month was Rs. 220,000. The actual manufacturing overhead cost incurred was 75,000 and the manufacturing overhead cost applied to Work in Process was Rs. 70,000. The adjusted cost of goods sold that would appear on the income statement for July is?
In: Accounting
Write an abstract/brief summary of the Economic and Social Cost of the Opioid Crisis in the US. Provide some data/research about this problem. Please write as much as you can and don't copy everything from the internet.
In: Economics
In: Economics
|
You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 15 million. The cash flows from the project would be SF 4.3 million per year for the next five years. The dollar required return is 14 percent per year, and the current exchange rate is SF 1.08. The going rate on Eurodollars is 6 percent per year. It is 4 percent per year on Euroswiss. Use the approximate form of interest rate parity in calculating the expected spot rates. |
| a. |
Convert the projected franc flows into dollar flows and calculate the NPV. (Enter your answer in dollars, not in millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
| b-1. |
What is the required return on franc flows? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Do not round intermediate calculations.) |
| Return on franc flows | % |
| b-2. |
What is the NPV of the project in Swiss francs? (Enter your answer in francs, not in millions of francs, e.g., 1,234,567. Round your answer to 2 decimal places, e.g., 32.16. Do not round intermediate calculations.) |
| NPV | SF |
| b-3. |
What is the NPV in dollars if you convert the franc NPV to dollars? (Enter your answer in dollars, not in millions of dollars, e.g., 1,234,567. Round your answer to 2 decimal places, e.g., 32.16. Do not round intermediate calculations.) |
In: Finance
A project has the following cash flows:
Project
Year Cash Flow
0 -$3,000
1 1,000
2 1,000
3 1,357.51
4 1,000
Its cost of capital is 10 percent. What is the project’s payback period?
In: Finance