4. Why do marketers take the time and cost associated with test marketing?

The cost, in thousands of dollars, of airing x television commercials during a sports event is given by

C(x) = 20 + 5,000x + 0.05x².

(a) Find the marginal cost function

Use it to estimate how fast the cost is increasing when x=4 ............. thousand dollars

Compare this with the exact cost of airing the fifth commercial.

The cost is going up at the rate of $  per television commercial. The exact cost of airing the fifth commercial is $  . Thus, there is a difference of $  .

(b) Find the average cost function C, and evaluate C(4).

What does the answer tell you?

The average cost of airing the first four commercials is $  per commercial.

A given machining operation is being performed and managements wants to know the cost for performing the work. The information you’ve collected shows the following: Machining Time = 7.680 min., Part Handling Time = 2.650 min., and the Tool Change Time = 15.535 min. The tool requires changing every 585 work pieces and the cost of the cutting tool is $100.75 per tool. The hourly rate for performing the machining and handling within the operation is $118.84 per hour. Determine the total cost required to perform the operation per part.

What are the four different methods used to assign costs to ending inventory and cost of goods sold? How are the methods different? What impact does each method have on the calculation of net income and ending inventory? do not use the outside resources, please answer in your own words.

On October 1, 2022, Pharoah Company places a new asset into service. The cost of the asset is $96500 with an estimated 5-year life and $21500 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Pharoah Company uses the straight-line method of depreciation?

$4825.

$3750.

$19300.

$9650.

management is considering the purchase of a machine that would cost $360,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $78,000 per year. The company requires a minimum pretax return of 11% on all investment projects. The net present value of the proposed project is what?

Ikea and Pottery Barn are the only competitors in the low-cost trendy furniture market. At the beginning of 2013 Ikea announces that they will cut all prices by 25%, significantly below Pottery Barn’s prices. As a result, Pottery Barn quickly begins to lose market share, and realizes that if Ikea does not increase their prices Pottery Barn will go out of business. Pottery Barn brings an antitrust suit against Ikea, alleging that they are engaging in predatory pricing in violation of Section 2 of the Sherman Act. What fact would be most detrimental to Pottery Barn’s case?

The college bookstore tells prospective students that the average cost of its textbooks is $52 with a σ of $4.50. A group of smart statistics students think that the average cost is much higher. In order to test the bookstore’s claim against their alternative, the students select a random sample of size 100. Assume that the mean from their random sample is $52.80. Use alpha value of 0.05 level to test the hypothesis.

compare these machines in terms of cost and specify the reasons: extrusion machine, injection molding, and hot press machine