When will producer surplus, as shown on a graph of demand and marginal cost, be exactly equal to the profit earned by a monopolist firm (or any firm that faces its own demand curve)?
a. When fixed costs are equal to zero
b. When the marginal cost is constant
c. When the average total cost is u-shaped
d. When fixed costs and variable costs are equal
In: Economics
With a certain medical insurance policy, the customer must first pay an annual $350 deductible, and then the policy covers 80% of the cost of x-rays. The first insurance claims for a specific year submitted by a person are for two x -rays. The first x-ray cost $680 and the second x-ray cost $930. How much, in total, will he need to pay for these x-rays?
In: Statistics and Probability
With a certain medical insurance policy, the customer must first pay an annual $100 deductible, and then the policy covers 80% of the cost of x-rays. The first insurance claims for a specific year submitted by a person are for two x-rays. The first x-ray cost $620, and the second x-ray cost $960. How much, in total, will he need to pay for these x-rays?
In: Advanced Math
Break-Even Analysis
Unit Revenue $900
Fixed Cost $50,000
Marginal Cost $400
Postage per unit $10
Fax Machine cost $90
"New Sales" Forecast 300
Confirmed future orders 100
If you knew that a 25 % discount on the last 200 units would cause the new sales to increase to a total of 430, would you do it?
In: Finance
Demand for a product is 3200 TL units per quarter. Each order has a fixed cost of 2500 TL. Annual holding cost per product is 80 TL.
Calculate: a) number of products that the company should order
b) average inventory
c) number of orders per year
d) expected time between orders
e) total relevant cost
In: Operations Management
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $13,000 and ending work in process inventory of $18,000. During the month, the cost of units transferred out from the department was $148,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be: Multiple Choice $31,000 $119,000 $132,000 $166,000
In: Accounting
In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $33,000. During the month, $250,000 of costs were added to production and the cost of units transferred out from the department was $244,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:
In: Accounting
Professor Bong has just written the first textbook in Punk Economics. It is called Up Your Isoquant.
Market research suggests that the demand curve for this book will be
D(p) = 2,000 - 100p,
where p is its price.
(a) Notice that the demand curve given above has quantity as a function of price. So, begin by rearranging that equation to get price as a function of quantity. (This is known as the inverse demand function.)
(b) The total revenue function for Professor Bong's book is _______ and the marginal revenue function is MR(y)= _______ - y/50
Now, some information on the costs of production. It will cost $1,000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $4 per book for every book printed.
(c) The total cost function for producing Professor Bong's book is C(y) = 4y +_______ and the marginal cost function is MC = _______
(d) Look at the marginal revenue function you found it part (b), and the marginal cost function you found in part (c). Set marginal revenue equal to marginal cost to find the profit-maximizing quantity of books for professor Bong to sell:
In: Economics
A company makes customized components to specifications. Its old cost accounting system allocated all overhead costs to customer jobs based on machine hours. Its new activity-based costing system uses the following information:
Activity Cost Pool and Budgeted Costs: Machine setup $ 90,000, Supervision 140,000, Machine maintenance 170,000
Activity Cost Driver and Estimated Cost Driver Level: Number of setups 180, Direct labor hours 4,000m Machine-hours 5,000
A new Kamlet Company’s order requires 4 setups, 30 direct labor hours and 50 machine-hours.
1. What was the overhead rate in the old cost accounting system? $___ per machine hours
2. What was the total overhead cost charged to the Kamlet Company’s order under the old cost accounting system?
3. What is the overhead rate for the supervision activity in the new activity-based costing system?
4. What is the amount of overhead charged to the Kamlet Company order for the supervision activity under the new activity-based costing system?
5. What is the total overhead cost charged to the Kamlet Company order under the new activity-based costing system?
In: Accounting
What is the percentage markup on a proposal as a percent if the fixed bid price offered is 552,000 and the sum of direct cost is 480,000?
The calendar day duration of a project is planned for 19 days based on a Monday through Friday work week. How many work days were available in this period if the start of the project was on the last Monday in July 2020?
What is the forecasted total project cost if the reported cost experience continues to the end that started with a total budgeted cost of 420,000 and a progress report gives the actual cost to date of 280,000 and earned value of 300,000?
A fixed price contract totaling 320,000 had actual cost 5% higher than estimated. The proposal had a profit of 15.0%. What is the new profit margin percent?
A fixed price contract including a profit of 340,000 totals 4.6 million with no reserve. In a progress report the CEV was given as 2.75 million and actual cost was 2.8 million. What is the forecasted (estimated) profit in units of currency using forecasting based on the assumption that cost performance on the contract to date will continue for the remainder of the project?
A negative 4 days slack for an activity in a project where the activity has an ES of 18 and duration of 10 means the activity has an LF of ____ .
In: Accounting