Questions
Update: Total cost is provided see below. We have to calculate Marginal Revenue numbers and others....

Update: Total cost is provided see below. We have to calculate Marginal Revenue numbers and others.

Please advise,

The chart below shows the demand curve for dog food at Charlie’s dog food factory and the total cost of producing various quantities:

Quantity Price ($\lb) Total Revenue Marginal Revenue ($) Total Cost Marginal Cost Profit
1 15 3
2 13 8
3 11 15
4 9 24
5 7 35
6 5 48

Fill in the rest of the chart.

b. How much dog food should Charlie sell, and what price should he charge? Answer first using Method I and then using Method II.

c. If Charlie is required to pay a $5 annual license fee to operate his dog food factory, what happens to his total cost numbers? What happens to his marginal cost numbers? What happens to the amount of dog food he sells and the price he charges?

d. If Charlie is required to pay an excise tax of $6 per pound of dog food, what happens to his total cost numbers? What happens to his marginal cost numbers? What happens to the amount of dog food he sells and the price he charges?

In: Economics

Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the...

Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate.

   

P0 =

D1

Keg

P0 = Price of the stock today
D1 = Dividend at the end of the first year
D1 = D0 × (1 + g)
D0 = Dividend today
Ke = Required rate of return
g = Constant growth rate in dividends


D0 is currently $3.00, Ke is 11 percent, and g is 6 percent.

Under Plan A, D0 would be immediately increased to $3.50 and Ke and g will remain unchanged.
Under Plan B, D0 will remain at $3.00 but g will go up to 7 percent and Ke will remain unchanged.

a. Compute P0 (price of the stock today) under Plan A. Note D1 will be equal to D0 × (1 + g) or $3.50 (1.06). Ke will equal 11 percent, and g will equal 6 percent. (Round your intermediate calculations and final answer to 2 decimal places.)

Stock price for Plan A_________

b. Compute P0 (price of the stock today) under Plan B. Note D1 will be equal to D0 × (1 + g) or $3.00 (1.07). Ke will be equal to 11 percent, and g will be equal to 7 percent. (Round your intermediate calculations and final answer to 2 decimal places.)

c. Which plan will produce the higher value?

plan A or B ?

In: Finance

Mary plans to buy a flat in Tuen Mun, and the selling price is $6,000,000. Mary...

Mary plans to buy a flat in Tuen Mun, and the selling price is $6,000,000. Mary is offered two mortgage loans: one from Hang Seng Bank (HSB) and another from the developer Sino Group (Sino). (i) a 25-year loan at “Prime rate (P) – 2.8%” from HSB, based on a loan-to-value ratio (LTV) of 60% (ii) a 25-year loan at “Prime rate (P) + 1%” from Sino, based on an LTV of 80%, but Mary can pay interest only in the first three years Both loans require monthly payments and are fully amortizing.

(a) Suppose the prime rate is 5% and is expected to remain constant for a long period of time, calculate the (i) down payments, (ii) monthly payments, and (iii) also the loan balances at the end of Year 3, of the two loans mentioned above.

(b) Calculate the total interest expenses of the two loans. How much do they differ?

(c) Suppose Mary takes up the loan offered by Hang Seng Bank finally. If the housing price is expected to rise by 7% per year, and Mary would like to hold the property for four full years before selling it. Calculate Mary’s expected appreciation on housing price and expected return on equity.

(d) If the housing price grows at the rate expected by Mary, what is her realized return from this investment when she sells the property at the end of Year 4?

In: Accounting

( I am posting this for the third time. The first time I posted, whoever did...

( I am posting this for the third time. The first time I posted, whoever did it, he did not read the instruction and did not mention the letters with the answer, such as which one is A, B, C, D, E, F, while he was answering. The 2nd time I posted, whoever did it, he had handwritten it. So, I faced difficulty to understand the handwriting. The handwriting was horrible. Please mention the letters with the answers this time and do not handwrite it, PLEASE. Thank you very much for helping me.)

Managerial Economics Question

1. The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed:

P= 1760 - 12Q

The cost analysis department has estimated the total cost function for the poster bed as

TC = (1/3)Q^3 - 15Q^2 + 5Q + 24,000

A) Calculate the level of output that should be produced to maximize short-run profits.

B) What price should be charged?

C) Compute total profits at his price-output level.

D) Compute the point price elasticity of demand at the profit-maximizing level of output.

E) What level of fixed costs is the firm experiencing on its bed production?

F) What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated?

In: Economics

Todd Winningham IV has $4,100 to invest. He has been looking at Gallagher Tennis Clubs Inc....

Todd Winningham IV has $4,100 to invest. He has been looking at Gallagher Tennis Clubs Inc. common stock. Gallagher has issued a rights offering to its common stockholders. Five rights plus $50 cash will buy one new share. Gallagher’s stock is selling for $70 ex-rights.

a-1. How many rights could Todd buy with his $4,100? (Do not round intermediate calculations and round your answer to the nearest whole number.)

a-2. Alternatively, how many shares of stock could he buy with the same $4,100 at $70 per share?

b. If Todd invests his $4,100 in Gallagher rights and the price of Gallagher stock rises to $75 per share ex-rights, what would his dollar profit on the rights be? (First compute profit per right.)

c. If Todd invests his $4,100 in Gallagher stock and the price of the stock rises to $75 per share ex-rights, what would his total dollar profit be?

d. If Todd invests his $4,100 in Gallagher rights and the price of Gallagher’s stock falls to $42 per share, ex-rights, what would his dollar profit on the rights be?

e. If Todd invests his $4,100 in Gallagher stock and the price of Gallagher’s stock falls to $42 per share ex-rights, what would be his total dollar profit?

In: Finance

Consider the market for onions in India during a two month period (Dec 2010 - Jan...

Consider the market for onions in India during a two month period (Dec 2010 - Jan 2011). The average price was running around Rs 30 in the first week of Dec 2010 and shot to above Rs 50 by the fourth week of December. The average price level usually hovers around Rs 15. ​Consider that the events were such that both the demand and the supply of onion in India were affected during the two-month period.

Supply Side -India largest producer of onions and government had been supporting aggressive export policies -Highly perishable and lack proper storage facilities (most farmers bring onions to market and unload entire stock within a month of harvest) -Crop is susceptible to disease and pests which can ruin the crop (fungal disease impacted the crop in 2010) -Crop is sensitive to weather (extended monsoon in 2010)

Demand Side -Consumers use onions daily regardless of income -Not many close substitutes and considered to be almost an essential item -Population growing -December-January is when people get married in India as well as seasonal celebrations increasing demand for onions and families stocking up in anticipation

What possible general combination(s) of changes in demand and supply would necessarily lead to an increase in the price of onions? Support your discussion by stating the average price during the two-month period.

In: Economics

JAVA - The Westfield Carpet Company has asked you to write an application that calculates the...

JAVA -

The Westfield Carpet Company has asked you to write an application that calculates the price of carpeting for rectangular rooms. To calculate the price, you multiply the area of the floor(width times length) by the price per square foot of carpet. For example, the area of floor that is 12 feet long and 10 feet wide is 120 square feet. To cover that floor with carpet that costs $8 per square foot would cost $960. (12 X 10 X 8 = 960.)

First, you should create a class named RoomDimension that has two fields: one for the length of the room and one for the width. The RoomDimension class should have a method that returns the area of the room. (The area of the room is the room's length multiplied by the room's width.)

Next you should create a RoomCarpet class that has a RoomDimension object as a field. It should also have a field for the cost of the carpet per square foot. The RoomCarpet class should have a method that returns the total cost of the carpet.

Figure 8-21 is a UML diagram that shows possible class designs and the relationships among the classes. Once you have written these classes, use them in an application that asks the user to enter the dimensions of a room and the price epr square foot of the desired carpeting. The application should display the total cost of the carpet.

In: Computer Science

8-13 ) Required information Use the following information for the Exercises below. [The following information applies...

8-13 ) Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Hart Company made 4,600 bookshelves using 31,000 board feet of wood costing $359,600. The company's direct materials standards for one bookshelf are 7 board feet of wood at $11.50 per board foot.

Exercise 8-13 Computation and interpretation of materials variances LO P2

(1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
///////////////////////////////////////////////////////////////////////////////////////////////////////

Exercise 6-5 Absorption costing and variable costing income statements LO P2

Rey Company’s single product sells at a price of $222 per unit. Data for its single product for its first year of operations follow.

Direct materials $ 26 per unit
Direct labor $ 34 per unit
Overhead costs
Variable overhead $ 12 per unit
Fixed overhead per year $ 364,000 per year
Selling and administrative expenses
Variable $ 24 per unit
Fixed $ 212,000 per year
Units produced and sold 26,000 units


1.
Prepare an income statement for the year using absorption costing
2. Prepare an income statement for the year using variable costing.

In: Accounting

Constraints Exercise Product A Product B Product C Selling price $180 $270 $240 Less variable expenses:...

Constraints Exercise

Product A

Product B

Product C

Selling price

$180

$270

$240

Less variable expenses:

         Direct materials

         Other

24

102

72

90

32

148

Total variable expenses

126

162

180

Contribution margin per unit

Contribution margin per constrained resource

1.      Rank the products in order of profitability based on contribution margin per unit.

2.      Assume that the same raw materials are used in all the products and is available in limited quantities at $8 per pound. There is a limited quantity of material on hand for production for the current month, and there is a backlog on the orders for each product. If the company cannot buy additional material this month, which product should it concentrate on first? Second? Third? Why?

3. Now let’s change the facts. Assume that the company has only 3,000 lb of material on hand for this month’s production and has order backlogs as follows:

Product A          200 units

Product B.         300 units

Product C         150 units

There is not enough material on hand available to clear the entire backlog of orders; however, the company can buy the same material at a premium price from a foreign supplier. What is the maximum price per lb. that the company would be willing to pay to acquire enough material to complete all the backlog of orders this month?

Step 1.      Which product is affected by the shortfall?

Step 2.      Maximum price per lb computation.

In: Accounting

Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z,...

Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z, the demand for consumer loans was given by Qdpre-TILSA = 6 -100P (in billions of dollars) and the supply of consumer loans by credit unions and other lending institutions was QSpre-TILSA = 5 + 100P (in billions of dollars). The TILSA now requires lenders to provide consumers with complete information about the rights and responsibilities of entering into a lending relationship with the institution, and as a result, the demand for loans increased to Qdpost-TILSA = 20 -100P (in billions of dollars). However, the TILSA also imposed “compliance costs” on lending institutions, and this reduced the supply of consumer loans to QSpost-TILSA = 3 + 100P (in billions of dollars). Based on this information, compare the equilibrium price and quantity of consumer loans before and after the Truth in Lending Simplification Act.(Note: Q is measured in billions of dollars and P is the interest rate).

Instruction: Enter your responses for the equilibrium price in percentage terms, and round all responses to one decimal place.

Equilibrium price (interest rate) before TILSA: 0.5 percent

Equilibrium quantity (in billions of dollars) before TILSA: $ 5.5 billion

Equilibrium price (interest rate) after TILSA: __ percent

Equilibrium quantity (in billions of dollars) after TILSA: $ __ billion

(first two answers are correct, I just need help with parts 3 and 4)

In: Economics