The market demand is given as;

P = 100 – Q

Marginal cost of production is given as;

MC = 10

1. Calculate the level at which market decides to produce and market price   
2. Total Revenue ( TR) and Total Cost (TC)
3. Economic Profit (π)
4. Identify the market structure; either perfect competition or monopoly?

Which of the following is the cost of quality classification for costs incurred to improve process reliability or reduce process variation?

a. rework and wastage

b. external failure costs

c. internal failure costs

d. appraisal cost

e. prevention cost

The cost of weddings in the United States has skyrocketed in recent years. As a result, many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised in Bride Magazine that the cost of a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the 0.025 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? 12.4 8.5 10.1 12.6 10.5 9.1 9.8 11.2

a. State the null hypothesis and the alternate hypothesis. Use a .025 level of significance. (Enter your answers in thousands of dollars.) H0: μ ≥ H1: μ <

b. State the decision rule for 0.025 significance level. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.) Reject H0 if t <

c. Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.) Value of the test statistic

d. What is the conclusion regarding the null hypothesis? H0. The cost is than $10,000.

1. The Masterson, Inc. is considering the purchase of a piece of equipment whose upfront cost is $65 million. The company estimates that the result of operating this equipment could go one of two ways: it could be highly successful and produce EBIT of $15 million in year one and that EBIT grows at 3.42% per year for nine more years; or it could be a poor performer and produce only $5 million in EBIT in year one and that will grow by only 2.12% per year over the remaining useful life of ten years. The machine will be depreciated on a straight line basis over its useful life down to a book value of $9 million. The expected salvage value of the machine at the end of year ten is $11 million. The company’s marginal tax rate is 25% and its RRR or WACC is 16%. The company assigns a 38% chance to success.
   1. Given the above information and based on static analysis, should the company go ahead with its investment?
   2. Upon further study the company realizes that, if the project proved to be underperforming by the end of year one, the company can stop production and sell the machine for a salvage value of $61 million. Given this information, should the company go ahead with the investment?
   3. What is the present value of the option to abandon?  

You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C (Q) = 4 + 4Q + Q(squared).

1. Find the inverse demand function for your firm’s product.
2. Determine the profit-maximizing price and level of production.
3. Calculate your firm’s maximum profits.
4. What long-run adjustments should you expect? Explain

3. A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $230,000, and the following quantities of product and sales revenues were produced.

How much of the $230,000 cost should be allocated to flour if the value basis is used?

6.

Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount allocated to the Welding Department (rounded to the nearest dollar) if administrative costs for the school were $66,000, maintenance fees were $28,000, and utilities were $7,600?

1. Which is not an example of a cost driver?

   2.   Which of the following reflects the simplest allocation method for a factory?

3.   Significant differences between the "traditional view" of quality and the emerging "quality-based view" relate to which of the following?

PROBLEM 3: Projected benefit obligation (PBO), January 1                                   $180,000

Fair Value of Plan Assets (equals market-related value), January 1                       200,000

Service cost                                                                                                                22,000

Unamortized prior service cost, January 1                                                               20,000

Unrecognized net loss, January 1                                                                              26,000

Loss due to change in actuarial assumptions                                                           15,000

Contributions to pension plan                                                                                  7,500

Benefits paid                                                                                                              13,000

Discount rate                                                                                                             9%

Actual rate of return on plan assets                                                                         10%

Expected rate of return on plan assets                                                                     8%

Average remaining service years                                                                              20

REQUIRED:

1. Determine the funded status of the plan assets (3 points).
2. Determine the pension cost/expense (6 points).
3. Determine the Ending PBO (7 points).
4. Determine the ending Plan Assets (5 points).
5. Now what is the funded status (3 points). This is not the same as question a
6. How much of UNRECOGNIZED Prior Service Cost is reported in Accumulated other comprehensive Income (3 points).