The magic car company can sell a new car for
P(x) = 1500 - 3x... Fixed overhead = $60,000..... cost per car = $200.
a) Write down the formulas for R(x) and C(x). the revenue and cost functions, in terms of x, the number of cars produced and sold.
b) Let P(x) = R(x) - C(x) be the profit function. Sketch the graph of P(x) indicating the appropriate domain.
c) How many cars do you need to break even?
d) What is the maximum possible profit?
In: Economics
A hospital is considering the purchase of a piece of medical equipment that costs $1,500,000 and has a useful life of five years and no salvage value at the end of its useful life. The equipment generates revenues of $650,000 per year and operating expenses of $300,000. Calculate NPV, payback, BCR, and IRR, should the equipment be purchased if the discount rate is 6% or 10%?
Revenue Expense
Year 0 - $1,500,000 (investment)
Year 1 $650,000 $300,000
Year 2 $650,000 $300,000
Year 3 $650,000 $300,000
Year 4 $650,000 $300,000
Year 5 $650,000 $300,000
In: Finance
Question No: 2 (15 minutes)
Notson Company gathered the following condensed data for the year ended December 31, 2017:
|
Accounts |
Balance |
|
Sales |
$560,000 |
|
Sales Returns and Allowances |
20,000 |
|
Sales Discounts |
7,000 |
|
Cost of Goods Sold |
386,000 |
|
Freight-out |
2,000 |
|
Advertising Expense |
15,000 |
|
Interest Expense |
18,000 |
|
Store Salaries Expense |
55,000 |
|
Utilities Expense |
28,000 |
|
Depreciation Expense |
7,000 |
|
Interest Revenue |
30,000 |
Required:
Use the above information to prepare a multiple-step income statement for the year ended December 31, 2017.
In: Accounting
Draw the cash flow diagram for the following data.
A company purchases a machine to make widgets for $10,000. the
collect payment for their widgets at the end of the year in which
they are delivered. At the end of 5 years the machine must be
scrapped at which time its value is $0. The following is the net
revenue generated by the widget machine.
Year 1 - $2,500
Year 2 - $3,500
Year 3 - $2,250
Year 4 - $3,000
Year 5 - $2,000
What is the present worth of the widget machine if the companies
TVOM is 5.37%? $
What is the future worth at the end of the 5 year life cycle? $
In: Economics
Please prepare all appropriate journal entries for the year ending 12/31/2019
In: Accounting
1.Suppose the demand and supply for milk is described by the following equations: Qd= 600-100P and Qs= -150 + 150P, where P is the price of a gallon of milk.a.What is the equilibrium price and quantity?b.Suppose the US government imposes a $1 per gallon milk tax on dairy farmers. What is the new equilibrium price and quantity? How much do consumers now pay? How much do producers now receive? How much tax revenue is raised by the milk tax?c.Based on your answer to part b, is supply or demand more elastic? Explain.
In: Economics
The operations of Smits Corporation are divided into the Child
Division and the Jackson Division. Projections for the next year
are as follows:
| Child Division |
Jackson Division |
Total |
||||
| Sales revenue | $250,000 | $180,000 | $430,000 | |||
| Variable expenses | 90,000 | 100,000 | 190,000 | |||
| Contribution margin | $160,000 | $80,000 | $240,000 | |||
| Direct fixed expenses | 75,000 | 62,500 | 137,500 | |||
| Segment margin | $85,000 | $17,500 | $102,500 | |||
| Allocated common costs | 35,000 | 27,500 | 62,500 | |||
| Total relevant benefit (loss) | $50,000 | $(10,000) | $40,000 | |||
Operating income for Smits Corporation as a whole if the Jackson
Division were dropped would be
In: Accounting
Suppose the demand function P = 10 - Q, and the supply function is: P = Q, where P is price and Q is quantity. Calculate the equilibrium price and quantity.
b.Suppose government imposes per unit tax of $2 on consumers. The new demand function becomes: P = 8 – Q, while the supply function remains: P = Q. Calculate the new equilibrium price and quantity.
c.Based on (b), calculate the consumer surplus, producer surplus, tax revenue and the deadweight loss under the tax rate in (b). Also explain your answers in (c) diagrammatically.
In: Economics
How would you expect the following changes to affect the prevailing wage and employment of servers in restaurants? Explanation and graph for all.
a. The pandemic reduces demand for restaurant meals.
b. New techniques reduce the amount of time servers need to take each order.
c. In order to raise more revenue, the government imposes a new payroll tax on restaurants. (That is, the government requires that restaurants pay some amount of money to the government for each worker they employ.)
d. Worse job prospects elsewhere in the economy cause more people to want to become servers.
In: Economics
Some people argue that government-owned enterprises do not perform as well as private enterprises. Specifically, government-owned enterprises cannot efficiently allocate resources used in the production process. Do you agree with this view? Please use economic theories to explain in detail why you think this is correct or why this statement is not reliable. In your explanation, please make a comparison between a government-owned company and a private company in the same industry to support your argument. You may compare the operating revenue, costs, etc. of the two companies.
In: Economics