isty Company reported the following before-tax items during the current year:

Misty's effective tax rate is 40%.

What is Misty's income from continuing operations?

Multiple Choice

$290.

$370.

$174.

$390.

Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow:

Common fixed expenses in the company total $113,000 annually. Last year the company produced and sold 39,000 units of Weedban and 22,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

Product Line Total Company Weedban Greengrow

Sales $1,094,000 $390,000 $704,000

Variable expenses 375,70089 ________________ 286000

Traceable fixed income _____________ ______________ ______________

Contribution margin 718,300 300, 300    418,000

Traceable fixed expenses _________________ ______________________ ______________

7Product line segment margin7 718,300 $300,300 $418,000

Common fixed expenses not traceable to products __________________ ____________________ ______________

Net operating income $718,300 _____________________ __________________

Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow:

Common fixed expenses in the company total $111,000 annually. Last year the company produced and sold 39,000 units of Weedban and 17,500 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

We wish to compare the PsyCap scores of our class to a predetermined standard set by a study conducted in 2014. The population mean for this standard is 121. 58 with a standard deviation of 11.29.  

Utilizing the steps of hypothesis testing, determine if the scores of our class are equal to those of the standard using a 95% confidence level.

Answer

Step 1

Our Hypothesis

Ho: Ho =   μ = 121.58 (equal to(null))

Ha: μ ≠ 121.58 (not equal to (alternative))

Step 2

Specify the significance level a(alpha)

a = 0.05

Step 3   (also step 5)

Select the test statistic (two tailed test, this means two rejecting regions)

     (103.76-121.58)/ 11.29/ square root of 17 = -6.507

                                   0.95

0.025                                                                0.025

               -1.96                                      1.96

Step 4

The rule is to decide whether the z equals that of Ho, if it is less or more we reject and favor the alternative Ha

Step 5

     (103.76-121.58)/ 11.29/ square root of 17 = -6.507

                                   0.95

0.025                                                                0.025

               -1.96                                      1.96

Step 6 Decide whether to reject Ho

Because the result was -6.507, we choose to reject Ho

Step 7

We conclude that scores are below 2014’s data, meaning it is not equal.

The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual inventory system.

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

1. Average Cost for Producing Microwaves

Let the total cost function C(x) be defined as follows.

C(x) = 0.0003x³ − 0.02x² + 103x + 3,600

Find the average cost function C.

C(x) =

Find the marginal average cost function C '.

C '(x) =

2. Marginal Revenue for Producing Loudspeakers

The management of Acrosonic plans to market the ElectroStat, an electrostatic speaker system. The marketing department has determined that the demand for these speakers is represented by the following function, where p denotes the speaker's unit price (in dollars) and x denotes the quantity demanded. Find the following functions (in dollars), find the value (in dollars) and interpret your results.

p = −0.02x + 890      (0 ≤ x ≤ 20,000)

(a)

Find the revenue function R.

R(x) =

(b)

Find the marginal revenue function R'(x).

R'(x) =

(c)

Compute the following value.

R'(8,200) =

Interpret your results.

When the level of production is  units, the production of the next speaker system will bring an additional revenue of  dollars.

3.Marginal Cost, Revenus, and Profit for Producing LCD TVs

A company manufactures a series of 20-in. flat-tube LCD televisions. The quantity x of these sets demanded each week is related to the wholesale unit price p by the following equation.

p = −0.007x + 190

The weekly total cost (in dollars) incurred by Pulsar for producing x sets is represented by the following equation. Find the following functions (in dollars) and compute the following values.

C(x) = 0.000001x³ − 0.02x² + 140x + 75,000

(a)

Find the revenue function R.

R(x) =

Find the profit function P.

P(x) =

(b)

Find the marginal cost function C'.

C'(x) =

Find the marginal revenue function R'.

R'(x) =

Find the marginal profit function P'.

P'(x) =

(c)

Compute the following values. (Round your answers to two decimal places.)

C'(1,500)=R'(1,500)=P'(1,500)=

For a monopolist:

Price is greater than marginal revenue.

Marginal revenue equals zero.

Marginal cost equals zero.

Average total cost equals marginal cost.

1. Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (π), and marginal profit (Mπ) in the following table:

Graph the firm’s demand curve and marginal revenue curve.

Graph the firm’s total cost curve, total revenue curve, and total profit curve.