4. Suppose that a perfectly competitive firm has the following total variable costs (TVC):
Quantity: 0 1 2 3 4 5 6 7 8
TVC: $0 $20 $58 $74 $88 $106 $128 $152 $178
It also has total fixed costs (TFC) of $50. If the market price is $18 per unit: a. Find the firm’s profit-maximizing quantity using the marginal revenue and marginal cost approach. b. Is the firm earning a positive profit, suffering a loss, or breaking even?
In: Economics
Inventory Turnover and Days’ Sales in Inventory The Southern Corporation installed a new in-
ventory management system at the beginning of 2018. Shown below are data from the company’s
accounting records as reported by the new system:
2018 2019
Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000,000 $20,000,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,600,000 9,200,000
Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,530,000
Ending inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,000 2,600,00
Calculate the company’s (a) inventory turnover (round to three decimal places) and (b) days’ sales in
inventory for 2018 and 2019. Comment on your results
explain he results :
In: Accounting
The domestic demand for DVD players is given by Q? = 100 − ? and the domestic supply is given by Q? = ?. DVD players can currently be freely imported at the world price of $20. The government is planning to impose a tariff of $10 per unit on imported DVD players. With the tariff, how many units would be imported? How much would domestic producer surplus change if the government introduces a $10 import duty per DVD player? How much revenue would the domestic government collect from the imports of DVD players
In: Economics
One commonly misunderstood concept is that of sales tax reporting. All of the following are likely causes for this EXCEPT:
A) Sales tax is collected at the time of sale, right along with regular revenue.
B) Sales taxes are paid by remitting payment to the sales tax authority, much in the same way other bills are paid.
C) Tax preparers who are income tax experts are also trained in sales tax reporting.
D) Sales tax varies from locality to locality and can often be managed by the same tax authority as payroll taxes.
In: Accounting
Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).
Required: Determine the specific citation for accounting for each of the following items:
1. What alternative approaches can be used to estimate variable consideration?
2. What alternative approaches can be used to estimate the stand-alone selling price of performance obligations that are not sold separately?
3. What determines the timing of revenue recognition with respect to licenses of symbolic intellectual property?
4. What indicators suggest that a seller is a principal rather than anagent?
In: Accounting
In: Economics
Suppose the Marginal Revenue Product for green-eyed employees is
MRPG=23−0.75GMRPG=23-0.75G
Where G=the number of green-eyed workers and MRP is measured in dollars per hour. The going wage for a green-eyed worker is $8, but employer X discriminates against these workers and has a discrimination coefficient, D, of $1.50 per hour.
How many fewer green-eyed workers does employer X hire due to discrimination than would have been hired without discrimination?
In: Economics
Market demand is given by Q=1200-50P
Consider instead a monopoly market with only one firm. The firm’s marginal costs are given by MC=(1/150Q)+4.
In: Economics
Zambian Breweries sells its products in Zambia and three neighboring countries. Data collected from 2010 to 2018 shows that the company produced 300,000 barrels of beer annually. During this period, the average price per barrel of beer P (in Kwacha) was related to the quantity of beer sold Q (in thousands of barrels) by the demand function
P=-0.3224Q+245.4031
The total cost of producing Q thousand barrels of beer was
TCQ=101.1995Q+4699.3441
In: Economics
Heineken sells its products in Namibia and three neighboring countries. Data collected from 2010 to 2018 shows that the company produced 300,000 barrels of beer annually. During this period, the average price per barrel of beer P (in Namibian dollars) was related to the quantity of beer sold Q (in thousands of barrels) by the demand function
P=-0.3224Q+245.4031
The total cost of producing Q thousand barrels of beer was
TCQ=101.1995Q+4699.3441
At what output level revenue be maximized?
Find the quantity and price levels that maximize profit.
In: Economics