All of the following industry types have market power except
A) monopolistic competition.
B) perfect competition.
C) monopoly.
D) oligopoly.
CCC Computer Company has a monopoly on the sale of a specialized
color printer. If it sells two of these printers its total revenue
is $1,000, and if it sells three color printers its total revenue
is $1,200. The marginal revenue of the third color printer sold
is
A) equal to the price
B) $400
C) less than its price
D) higher than the price
For a monopoly, the marginal revenue curve has one point in
common with the firm's linear demand curve, which is
___________
A) y - intercept
B) no point in common
C) x - intercept
D) Indeterminate from the given information
When a monopolist sells two units of output its total revenue is
$600. When a monopolist sells three units of output its total
revenue is $630. The marginal revenue of the second unit is _____
A) Indeterminate from the given information
B) $230.
C) $310.
D) $630.
When a monopolist sells two units of output its total revenue is
$600. When a monopolist sells three units of output its total
revenue is $660. In order to sell three units of output instead of
only two, the monopolist must
A) increase its price by $30 per unit.
B) decrease its price by $80 per unit.
C) make no change in price and increase output by one unit.
D) decrease its price by $30 per unit.
In: Economics
Splish, Inc. began work on a $6,312,000 contract in 2020 to
construct an office building. During 2020, Splish, Inc. incurred
costs of $1,589,940, billed its customers for $1,156,000, and
collected $894,000. At December 31, 2020, the estimated additional
costs to complete the project total $3,228,060.
Prepare Splish’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is required, select "No entry" for the account titles
and enter 0 for the amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
| enter an account title to record costs incurred | enter a debit amount | enter a credit amount |
| enter an account title to record costs incurred | enter a debit amount | enter a credit amount |
|
(To record costs incurred.) |
||
| enter an account title to record billings | enter a debit amount | enter a credit amount |
| enter an account title to record billings | enter a debit amount | enter a credit amount |
|
(To record billings.) |
||
| enter an account title to record collections | enter a debit amount | enter a credit amount |
| enter an account title to record collections | enter a debit amount | enter a credit amount |
|
(To record collections.) |
||
| enter an account title to recognize revenue | enter a debit amount | enter a credit amount |
| enter an account title to recognize revenue | enter a debit amount | enter a credit amount |
| enter an account title to recognize revenue | enter a debit amount | enter a credit amount |
|
(To recognize revenue.) |
In: Accounting
Crane, Inc. began work on a $7,016,000 contract in 2020 to
construct an office building. During 2020, Crane, Inc. incurred
costs of $1,798,560, billed its customers for $1,125,000, and
collected $910,000. At December 31, 2020, the estimated additional
costs to complete the project total $3,197,440.
Prepare Crane’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is required, select "No entry" for the account titles
and enter 0 for the amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
|
enter an account title to record costs incurred |
enter a debit amount |
enter a credit amount |
|
enter an account title to record costs incurred |
enter a debit amount |
enter a credit amount |
|
(To record costs incurred.) |
||
|
enter an account title to record billings |
enter a debit amount |
enter a credit amount |
|
enter an account title to record billings |
enter a debit amount |
enter a credit amount |
|
(To record billings.) |
||
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
(To record collections.) |
||
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
(To recognize revenue.) |
In: Accounting
Stellar, Inc. began work on a $6,491,000 contract in 2020 to
construct an office building. During 2020, Stellar, Inc. incurred
costs of $1,941,020, billed its customers for $1,138,000, and
collected $904,000. At December 31, 2020, the estimated additional
costs to complete the project total $3,304,980.
Prepare Stellar’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is required, select "No entry" for the account titles
and enter 0 for the amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
|
enter an account title to record costs incurred |
enter a debit amount |
enter a credit amount |
|
enter an account title to record costs incurred |
enter a debit amount |
enter a credit amount |
|
(To record costs incurred.) |
||
|
enter an account title to record billings |
enter a debit amount |
enter a credit amount |
|
enter an account title to record billings |
enter a debit amount |
enter a credit amount |
|
(To record billings.) |
||
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
(To record collections.) |
||
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
(To recognize revenue.) |
In: Accounting
How to put merchandise inventory in T accounts
The following amounts summarize Transeer Company’s merchandising
activities during 2020. Post the activities in the following
T-accounts and calculate the account balances. Assume that the
company uses perpetual inventory system.
| Cost of merchandise sold to customers in sales transactions | $ | 190,000 | |
| Merchandise inventory balance, Dec. 31, 2019 | 40,000 | ||
| Invoice cost of merchandise purchases | 196,000 | ||
| Shrinkage determined on Dec. 31, 2020 | 36,000 | ||
| Cost of transportation-in | 2,400 | ||
| Cost of merchandise returned by customers and restored to inventory | 2,700 | ||
| Purchase discounts received | 2,100 | ||
| Purchase returns and allowances received | 5,100 | ||
In: Accounting
IMPORTANT NOTE*****Read the following scenario, and write one or two paragraphs to answer each of the sub-questions below:
Consider a small, but growing, company that distributes kitchen supplies. The customers are primarily small retailers such as kitchen specialty stores, hardware stores, and other types of home retail stores. Managers currently keep track of all customers, orders, and inventory information using a spreadsheet.
a. If a TPS was set up to automate the order entry and inventory system, provide two examples of reports that could be produced at the Managerial Level, and one example of a report that could be produced at the Strategic Level. Explain and describe the reports.
In: Economics
Peter Gitman is the Senior Relationship Manager at the ABC Wealth Management Company which provides financial planning advisory to high net worth customers. One of his customers Linda Scott told him that she is thinking of giving approximately HKD500,000 to charity to reduce her income taxes. Peter is also the member of the executive committee of the ‘Lovely Home for Seniors’, a charity organization providing services to the elders. The organization is planning its fundraising activity for the year. Peter recommends that the President of the ‘Lovely Home for Seniors’ call on Linda and ask for a donation in similar range.
Comment the action taken by Peter Gitman according to the professional and ethical standards.
In: Accounting
Peter Gitman is the Senior Relationship Manager at the ABC Wealth Management Company which provides financial planning advice to high net worth customers. One of his customers Linda Scott told him that she is thinking of giving approximately HKD500,000 to charity to reduce her income taxes. Peter is also a member of the executive committee of the ‘Lovely Home for Seniors’, a charity organization providing services to the elders. The organization is planning its fundraising activity for the year. Peter recommends that the President of the ‘Lovely Home for Seniors’ call on Linda and ask for a donation in a similar range.
Comment the action taken by Peter Gitman according to the professional and ethical standards.
In: Accounting
Peter Gitman is the Senior Relationship Manager at the ABC Wealth Management Company which provides financial planning advisory to high net worth customers. One of his customers Linda Scott told him that she is thinking of giving approximately HKD500,000 to charity to reduce her income taxes. Peter is also the member of the executive committee of the ‘Lovely Home for Seniors’, a charity organization providing services to the elders. The organization is planning its fundraising activity for the year. Peter recommends that the President of the ‘Lovely Home for Seniors’ call on Linda and ask for a donation in similar range.
Comment the action taken by Peter Gitman according to the professional and ethical standards.
In: Finance
Campbell Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 15 percent of the excess of actual net income over budgeted net income. The following is Atlantic Division’s current year’s performance:
**What is requirement B2? Please assist & how did you get the answer***
|
Current Year |
|||||
|
Sales revenue |
$ |
4,150,000 |
|||
|
Cost of goods sold |
2,410,000 |
||||
|
Gross profit |
1,740,000 |
||||
|
Selling & administrative expenses |
810,000 |
||||
|
Net income |
$ |
930,000 |
|||
The president has just received next year’s budget proposal from the vice president in charge of Atlantic Division. The proposal budgets a 3 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. Atlantic has enjoyed revenue growth of around 8 percent for each of the past five years. The president had consistently approved the division’s budget proposals based on 3 percent growth in the past. This time, the president wants to show that he is not a fool. “I will impose a 13 percent revenue increase to teach them a lesson!” the president says to himself smugly.
Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales.
Required
a. Prepare the budgeted income statement based on Atlantic Division’s proposal of a 3 percent increase.
b-1. Prepare income statement with 8% growth.
b-2. If growth is actually 8 percent as usual, how much bonus would Atlantic Division’s executive officers receive if the president had approved the division’s proposal?
c. Prepare the budgeted income statement based on the 13 percent increase the president imposed.
d. If the actual results turn out to be a 8 percent increase as usual, how much bonus would Atlantic Division’s executive officers receive since the president imposed a 13 percent increase?
Requirement A
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Requirement B1
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Requirement B
If growth is actually 8 percent as usual, how much bonus would Atlantic Division’s executive officers receive if the president had approved the division’s proposal?
What is the Bonus??????
|
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Requirement C & D
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In: Accounting