Questions
1)     In the short run, the: a. firm has complete flexibility with respect to input use. b.availability...

1)     In the short run, the:

a. firm has complete flexibility with respect to input use.

b.availability of all inputs is fixed.

c.operating period is longer than the planning period.

d.availability of at least one input is fixed.

2)     Point elasticity measures elasticity:

a. over a given range of a function.

b. at a spot on a function.

c. over a given range along a function.

d.before non-price effects.

3)     If the slope of a long-run total cost function decreases as output increases, the firm's underlying production    function exhibits:

a. constant returns to scale.

b. decreasing returns to scale.

c. decreasing returns to a factor input.

d. increasing returns to scale.        

4)     The vigor of competition always decreases with a fall in:

a. product differentiation.

b. barriers to entry.

c. the level of available information.

d. the number of competitors.

5)     In the short run, a monopolist will:

a. shut down if price equals average total cost.

b. shut down if price is less than average total cost.

c. shut down if price is less than average variable cost.

d. never shut down.

6)     With elastic demand, a price increase will:

a. decrease marginal revenue.

b. decrease total revenue.

c. increase total revenue.

d. decrease marginal revenue and total revenue.

7)     In competitive market equilibrium, the firm's:

a. MR = MC and P > AR

b. MR = MC and P > AC

c. AR = AC and MR > MC

d. P = MR = AR = AC = MC

8)     A government policy that addresses market failures caused by positive externalities is:

a. patent grants.

b. subsidies for pollution reduction.

c. tax policy.

d. the establishment of operating controls.

9)     A production function describes the relation between output and:

a. technical progress.

b. one input.

c. total cost.

d. all inputs.

          

10) When the cross-price elasticity = 3:

a. demand rises by 3% with a 1% increase in the price of X.

b. the quantity demanded rises by 3% with a 1% increase in the price of X.

c. the quantity demanded rises by 1% with a 3% increase in the price of X.

d. demand rises by 1% with a 3% increase in the price of X.

         

          

11) Marginal profit equals average profit when:

a. marginal profit is maximized.

b. average profit is maximized.

c. marginal profit equals marginal cost.

d. the profit minimizing output is produced.

12) When the cross-price elasticity = 3:

a. demand rises by 3% with a 1% increase in the price of X.

b. the quantity demanded rises by 3% with a 1% increase in the price of X.

c. the quantity demanded rises by 1% with a 3% increase in the price of X.

d. demand rises by 1% with a 3% increase in the price of X.

13) A firm will maximize profits by employing the quantity of each input where the marginal:

a. revenue product of each input equals its price.

b. revenue equals the price of each input.

c. product of each input is equal.

d. product of each input equals its price.

In: Economics

McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by...

McDonald's Corporation is an American fast food company, founded in 1940 as a
restaurant operated by Richard and Maurice McDonald , in San Bernardino, California ,
United States. They rechristened their business as a hamburger stand, and later
turned the company into a franchise , with the Golden Arches logo being introduced in
1953 at a location in Phoenix, Arizona . Although McDonald's is best known for its
hamburgers, cheeseburgers and french-fries , they feature chicken products,
breakfast items, soft drinks , milkshakes , wraps , and desserts . In response to changing
consumer tastes and a negative backlash because of the unhealthiness of their food,
the company has added to its menu salads , fish , smoothies , and fruit .
In March 2010, McDonald’s Corp. announced a policy to increase summer sales by
selling all soft drinks, no matter the size, for $ 1.00. The policy would run for 150 days
starting after Memorial Day. The $ 1.00 drink prices were a discount from the
suggested price of $ 1.39 for a large soda. Some franchises worried that discounting
drinks, whose sales compensate for discounts on other products, could hurt overall
profits, especially if customers bought other items from the Dollar Menu. McDonald’s
managers expected this promotion would draw customers from other fast-food
chains and from convenience stores such as 7-Eleven. Additional customers would
also help McDonald’s push its new beverage lineup that included smoothies and
frappes. Discounted drinks did cut into McDonald’s coffee sales in previous years as
some customers chose the drinks rather than pricier espresso beverages. Other chain
with new drink offerings, such as Burger King and Taco Bell, could face pressure from
the $ 1.00 drinks at McDonalds.
Questions
a. Given the change in price for a large soda from $ 1.39 to $ 1, how much would
quantity demanded have to increase for McDonald’s revenues to increase?
b. What is the sign of the implied cross-price elasticity with drinks from McDonald’s
competitors?
c. What are the other benefits and costs to McDonald’s of this discount drink policy?
……….

In: Economics

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate...

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $211,800 and the following divisional results.

Division
I II III IV
Sales $253,000 $198,000 $505,000 $445,000
Cost of goods sold 203,000 195,000 295,000 253,000
Selling and administrative expenses 75,200 57,000 61,000 50,000
Income (loss) from operations $ (25,200) $ (54,000) $149,000 $142,000


Analysis reveals the following percentages of variable costs in each division.

I II III IV
Cost of goods sold 74 % 91 % 80 % 74 %
Selling and administrative expenses 41 58 50 57


Discontinuance of any division would save 50% of the fixed costs and expenses for that division.

Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued.Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Division I Division II
Contribution margin $ $

  

  

Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Continue Eliminate Net Income
Increase (Decrease)
Contribution margin $ $ $
Fixed costs
   Cost of goods sold
   Selling and administrative
      Total fixed expenses
Income (loss) from operations $ $ $

  

  

Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Continue Eliminate Net Income
Increase (Decrease)
Contribution margin $ $ $
Fixed costs
   Cost of goods sold
   Selling and administrative
      Total fixed expenses
Income (loss) from operations $ $ $

  

  

What course of action do you recommend for each division?

Division I                                                                       ContinuedEliminated
Division II                                                                       ContinuedEliminated

  

  

Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

BRISLIN COMPANY
CVP Income Statement
For the Quarter Ended March 31, 2020
Divisions
I III IV Total
Sales $ $ $ $
Variable costs
   Cost of goods sold
   Selling and administrative
      Total variable costs
Contribution margin
Fixed costs
   Cost of goods sold
   Selling and administrative
      Total fixed costs
Income (loss) from operations $ $ $ $

  

  

In: Accounting

1. What is the mean, median, and mode of both data columns? 2. Assuming 95% CI,...

1. What is the mean, median, and mode of both data columns? 2. Assuming 95% CI, calculate the confidence intervals of each data set. 3. What is the range of each data set? 4. Calculate the variance and standard deviation of each data set. 5. What is the skewness and kurtosis? 6. Generate a histogram plot of each of the data sets. 7. Based on the variability of the data, what do you think the next step would be to analyze the data? Age Income 29 9315 25 6590 28 9668 27 8412 25 1654 24 2431 25 6977 19 8966 27 9327 18 3871 25 9934 19 2236 19 3035 29 2518 19 3616 19 9219 28 1090 18 5368 26 2832 29 1899

In: Statistics and Probability

You are interested in finding a 98% confidence interval for the average commute that non-residential students...

You are interested in finding a 98% confidence interval for the average commute that non-residential students have to their college. The data below show the number of commute miles for 10 randomly selected non-residential college students. Round answers to 3 decimal places where possible.

11 11 27 10 20 27 18 23 8 18

a. To compute the confidence interval use a

distribution.

b. With 98% confidence the population mean commute for non-residential college students is between and miles.

c. If many groups of 10 randomly selected non-residential college students are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population mean number of commute miles and about percent will not contain the true population mean number of commute miles.

In: Statistics and Probability

1 ) If a flight is on time 90% of the time, use a normal approximation...

1 ) If a flight is on time 90% of the time, use a normal approximation to the binomial to find the probability that between 175 and 190 out of a total of 200 flights will be on time.

2)- In a study done by Statistics Weekly, they found that 12% of people believe that there will eventually be a zombie apocalypse. Suppose we have a random sample of 500, would it be unusual to find 43 people who believe that there will eventually be a zombie apocalypse. Would it be unusual to find 70 people who believe that there will eventually be a zombie apocalypse?

3-)  The age at the time of marriage was obtained for a random sample of 10 women. The results were 28, 24, 22, 25, 33, 35, 27, 26, 27, 20. Assume that the population has a normal distribution. Find a 90% confidence interval for the mean age at which a woman marries. Interpret your answer.

in detail, please

In: Statistics and Probability

Record No. Length-mm 1 22 2 30 3 23 4 22 5 26 6 23 7...

Record No. Length-mm
1 22
2 30
3 23
4 22
5 26
6 23
7 27
8 18
9 39
10 31
11 36
12 23
13 31
14 23
15 32
16 35
17 24
18 23
19 24
20 43
21 30
22 31
23 34
24 21
25 25
26 37
27 26
28 35
29 28
30 36

1. suppose you the fisher men want to use mosquito fish that are greater than 29 mm for bait, otherwise it is not worth using this lake to harvest bait fish.

a. do a z test in r and use library (desctools) to call it up. find the p value turn in the script.

In: Statistics and Probability

Pastina Company sells various types of pasta to grocery chains as private label brands.


Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2016, appears below.

   

  Account Title Debits Credits
  Cash 30,000     
  Accounts receivable 40,000     
  Supplies 1,500     
  Inventory 60,000     
  Note receivable 20,000     
  Interest receivable 0     
  Prepaid rent 2,000     
  Prepaid insurance 0     
  Office equipment 80,000     
  Accumulated depreciation—office equipment   30,000   
  Accounts payable   31,000   
  Salaries and wages payable   0   
  Note payable   50,000   
  Interest payable   0   
  Deferred revenue   0   
  Common stock   60,000   
  Retained earnings   24,500   
  Sales revenue   148,000   
  Interest revenue   0   
  Cost of goods sold 70,000     
  Salaries and wages expense 18,900     
  Rent expense 11,000     
  Depreciation expense 0     
  Interest expense 0     
  Supplies expense 1,100     
  Insurance expense 6,000     
  Advertising expense 3,000     
     
          Totals 343,500    343,500   
     
 
  Information necessary to prepare the year-end adjusting entries appears below.
1. Depreciation on the office equipment for the year is $10,000.
2.

Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2016, were $1,500.

3.

On October 1, 2016, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.

4.

On March 1, 2016, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2017.

5.

On April 1, 2016, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense.

6. $800 of supplies remained on hand at December 31, 2016.
7.

A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2017. Pastina credited sales revenue.

8.

On December 1, 2016, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2016 and January 2017, at $1,000 per month.

8.

value:
10.00 points

Required information

Required:
1. & 2.

Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations.)

3.

Prepare an adjusted trial balance.

For requirement 4, assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year.
 
4.

Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2016. (For Balance Sheet only, items to be deducted must be indicated with a negative amount. Other expenses should be indicated with a minus sign.)

5.

Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

6.

Prepare a post-closing trial balance.

In: Accounting

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue,...

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense—Building, Depreciation Expense—Equipment and Supplies Expense. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTSEmerson CompanyGeneral Ledger

ASSETS
11 Cash
12 Accounts Receivable
13 Prepaid Insurance
14 Supplies
15 Land
16 Building
17 Accumulated Depreciation-Building
18 Equipment
19 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Salaries and Wages Payable
EQUITY
31 Suzanne Emerson, Capital
32 Suzanne Emerson, Drawing
REVENUE
41 Fees Earned
42 Rent Revenue
EXPENSES
51 Salaries and Wages Expense
52 Utilities Expense
53 Advertising Expense
54 Repairs Expense
55 Depreciation Expense-Building
56 Depreciation Expense-Equipment
57 Insurance Expense
58 Supplies Expense
59 Miscellaneous Expense

2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.

Emerson Company

ADJUSTED TRIAL BALANCE

October 31, 20Y6

ACCOUNT TITLE DEBIT CREDIT

1

Cash

2

Accounts Receivable

3

Prepaid Insurance

4

Supplies

5

Land

6

Building

7

Accumulated Depreciation-Building

8

Equipment

9

Accumulated Depreciation-Equipment

10

Accounts Payable

11

Unearned Rent

12

Salaries and Wages Payable

13

Suzanne Emerson, Capital

14

Suzanne Emerson, Drawing

15

Fees Earned

16

Rent Revenue

17

Salaries and Wages Expense

18

Utilities Expense

19

Advertising Expense

20

Repairs Expense

21

Depreciation Expense-Building

22

Depreciation Expense-Equipment

23

Insurance Expense

24

Supplies Expense

25

Miscellaneous Expense

26

Totals

Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company’s accounting clerk prepared the following unadjusted trial balance:

Emerson Company

UNADJUSTED TRIAL BALANCE

October 31, 20Y6

ACCOUNT TITLE DEBIT CREDIT

1

Cash

6,820.00

2

Accounts Receivable

34,940.00

3

Prepaid Insurance

6,550.00

4

Supplies

1,800.00

5

Land

102,400.00

6

Building

273,200.00

7

Accumulated Depreciation-Building

79,660.00

8

Equipment

123,110.00

9

Accumulated Depreciation-Equipment

89,130.00

10

Accounts Payable

11,060.00

11

Unearned Rent

6,140.00

12

Suzanne Emerson, Capital

338,000.00

13

Suzanne Emerson, Drawing

14,000.00

14

Fees Earned

295,320.00

15

Salaries and Wages Expense

175,950.00

16

Utilities Expense

38,560.00

17

Advertising Expense

20,750.00

18

Repairs Expense

15,700.00

19

Miscellaneous Expense

5,530.00

20

Totals

819,310.00

819,310.00

In: Accounting

Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October...

Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:

Pitman Company

UNADJUSTED TRIAL BALANCE

October 31, 2019

ACCOUNT TITLE DEBIT CREDIT

1

Cash

7,500.00

2

Accounts Receivable

38,400.00

3

Prepaid Insurance

7,200.00

4

Supplies

1,980.00

5

Land

112,500.00

6

Building

300,250.00

7

Accumulated Depreciation-Building

87,550.00

8

Equipment

135,300.00

9

Accumulated Depreciation-Equipment

97,950.00

10

Accounts Payable

12,150.00

11

Unearned Rent

6,750.00

12

Jan Pitman, Capital

371,000.00

13

Jan Pitman, Drawing

15,000.00

14

Fees Earned

324,600.00

15

Salaries and Wages Expense

193,370.00

16

Utilities Expense

42,375.00

17

Advertising Expense

22,800.00

18

Repairs Expense

17,250.00

19

Miscellaneous Expense

6,075.00

20

Totals

900,000.00

900,000.00

The data needed to determine year-end adjustments are as follows:

a. Unexpired insurance at October 31, $600.
b. Supplies on hand at October 31, $675.
c. Depreciation of building for the year, $12,000.
d. Depreciation of equipment for the year, $8,600.
e. Unearned rent at October 31, $2,250.
f. Accrued salaries and wages at October 31, $2,800.
g. Fees earned but unbilled on October 31, $10,050.
Required:
1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
CHART OF ACCOUNTS
Pitman Company
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Prepaid Insurance
14 Supplies
15 Land
16 Building
17 Accumulated Depreciation-Building
18 Equipment
19 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Salaries and Wages Payable
EQUITY
31 Jan Pitman, Capital
32 Jan Pitman, Drawing
REVENUE
41 Fees Earned
42 Rent Revenue
EXPENSES
51 Salaries and Wages Expense
52 Utilities Expense
53 Advertising Expense
54 Repairs Expense
55 Depreciation Expense-Building
56 Depreciation Expense-Equipment
57 Insurance Expense
58 Supplies Expense
59 Miscellaneous Expense

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles.

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 158/176

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

Adjusting Entries

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In: Accounting