Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows: EnlightnerFoglighterSales volume in units 580 480 Unit sales price $300 $400 Unit variable cost 200 240 Unit contribution margin $100 $160 It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $130,000. Demand is high enough for either product to keep the plant operating at maximum capacity. Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)

Multiple Choice

$352,973.

$414,721.

$226,573

.$1,053,875

.$396,943.

Question 1

A) Complete the missing data on the table

B) What is the selling price of a laptop case explain your answer

c) What is the profit maximizing level of output for this firm explain your answer

d) create a graph using three columns of data on the table to illustrate the profit maximizing level of output. insert a graph in your Microsoft word study exercise document for submission do not submit a separate file for the graph

Suppose a firm can sell its product for a price of $75 (no more, no less). Suppose that the marginal cost curve and average variable cost curves cross at $100 and a quantity of 10. Assume that fixed costs are $0. At a quantity of 10, total revenue would be: 750

At a quantity of 10, variable cost would be: ________ 0 or 1,000

Since fixed costs are $0, profit at 10 units of output would therefore be: ________ -250, 0 ,750

However, if the firm chose to produce nothing, total revenue would instead be: _________ 0, 750, 75

and variable cost would be: _______ 250, -750, 0

Therefore if the firm produces nothing profit would be -250 .

The BEST course of action for this firm would be to produce: ________Nothing because P < AVC or Produce 10 units of Output

1.

Sam's Smoothies hires workers to produce smoothies. The market for smoothies is perfectly competitive and the price of smoothies is $4. The labor market is competitive and the wage rate is $40 a day. That table shows the workers' total product schedule.

How many workers will Sam's Smoothies hire to maximize profit and how many smoothies a day will it produce?

2. A company's cost function is estimated as: C(Q) = 300 + 2Q + Q² . If it produces 300 units per day, then what will be its: (a) average (total) cost? (b) average Variable cost, and (c) Marginal cost?

The IBP Grocery orders most of its items in lot sizes of 10 units. Average annual demand per side of beef is 720 units per year. Ordering costs are $25 per order with an average purchasing price of $100. Annual inventory carrying costs are estimated to be 40% of the unit cost.

Required:

a.             Determine the economic order quantity

b. Determine the annual cost savings if the shop changes from an order size of 10 units to the economic order quantity

c. Since the shelf life is limited, the IBP Grocery must keep the inventory moving. Assuming a 360-day year, determine the optimal lot size under each of the following:

(1) a 20-day shelf life and (2) a 10-day shelf life.

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Required:

1. What is the contribution margin per unit?

2.. What is the contribution margin ratio?

3.What is the variable expense ratio?

4. If sales increase to 1,001 units, what would be the increase in net operating income?

5. If sales decline to 900 units, what would be the net operating income?

6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

Consultants in a particular industry are currently paid $100 per hour and the typical work day lasts 10 hours. Demand for labour in that industry increases, resulting in the average hourly rate increasing to $150 per hour. However, a labour survey reveals that most consultants now work two fewer hours per day than they did prior to the rise in the price of their labour. A newspaper comments that this is at odds with the “law of supply”, such that higher prices should result in greater quantities supplied. Explain why individual consultants’ labour supply curves can be backward bending, such that higher wages lead to fewer hours worked, and explain whether the market labour supply curve for consultants is likely to violate the “law of supply”. Use appropriate diagrams to illustrate your answer.