Questions
Saudia Manufacturing Company established the following standard price and cost information: Sales...
Saudia Manufacturing Company established the following standard
price and cost information:
Sales price $ 50 per unit
Variable manufacturing cost 32
per unit
Fixed manufacturing cost $
100,000 total
Fixed selling and administrative cost $
40,000 total
Saudia Company expected to produce and sell 25,000 units. Actual production and sales amounted to 26,500 units.
Required: Complete the following table
(a) Determine the sales volume variances, including variances for
number of units, sales revenue, variable manufacturing cost, fixed
manufacturing cost, and fixed selling and administrative
cost.
(b) Classify the variances as favorable (F) or unfavorable (U).
In: Accounting
Consider the following supply and demand functionsqD = 12-3pqS = -3 + 2pSuppose...
Consider the following supply and demand functions
qD = 12-3p
qS = -3 + 2p
Suppose a per unit tax of 1 were charged to the buyer.
a) How much does the buyer pay?
b) How much does the seller receive?
c) What is the equilibrium quantity?
d) How much tax revenue is generated?
e) How much tax burden do the buyer and seller each bear?
f) Calculate the consumer surplus, producer surplus, welfare level, and dead weight loss with this tax.
g) Suppose the per unit tax were charged to the seller. How would our results change?
In: Economics
A seller faces two buyers: Big and Small. The seller knows the following willingness to pay...
A seller faces two buyers: Big and Small. The seller knows the following willingness to pay values: Big is willing to pay $10 for one unit, $5 for a second unit, $2 for a third unit, and does not want more than three units; Small is willing to pay $6 for one unit and does not want more than one unit. Assume the seller cannot distinguish which buyer is Big and which buyer is Small. Assume resale is impossible. What price menu maximizes the seller's revenue?
Buyer's choice: A package of 1 unit for $6 or a package of 3 units for $13. Why is this answer?
In: Economics
A company manufactures and sells x television sets per month. The monthly cost and price-demand equations...
A company manufactures and sells x television sets per month. The monthly cost and price-demand equations are
C(x)=75000+50x and p(x)=300-x/30, 0 ≤ x ≤ 9000
(A) Find the maximum revenue.
(B) Find the maximum profit, the production level that will realize the maximum profit, and the price the company should charge for each television set.
(C) If the government decides to tax the company $5 for each set it produces, how many sets should the company manufacture each month to maximize its profit? What is the maximum profit? What should the company charge for each set?
In: Math
Which of the following is NOT true about licensing? a. Licensing is the practice in which...
Which of the following is NOT true about licensing?
| a. |
Licensing is the practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee |
|
| b. |
When a product is licensed, the foreign partner will use the licensor’s patented technology as agreed to manufacture and sell products that meet the licensor’s standards. |
|
| c. |
The license fee could be based on a percentage of final sales revenue of the product, or the number of units sold. |
|
| d. |
It involves slightly more risk to the licensee than licensor. |
|
| e. |
Unscrupulous licensees have been known to manufacture licensed products and sell them under different brand names |
In: Operations Management
Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints.
Regulating a natural monopoly
Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves.
Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints.
Complete the first row of the following table.
Suppose that the government forces the monopolist to set the price equal to marginal cost.
Complete the second row of the previous table.
True or False: Under the average-cost pricing policy, the cable company has no incentive to cut costs.
True
False
In: Economics
Information was taken from adjusted trial balance of King Company: Account Debit. Credit Sales. $,295000(credit) Interest...
Information was taken from adjusted trial balance of King Company:
Account Debit. Credit
Sales. $,295000(credit)
Interest Revenue $88,000(credit)
Cost of Goods Sold $20,000
Salary Expense $45,000
Interest Expense $60,000
Advertising expense $30,000
Income Tax Expense $88,500
Net income 136,500
In addition, the following changes occurred during the year:
Accounts Receivable $10,000 credit
Inventory $35,000 debit
Accounts Payable $12,000 debit
Salary Payable $23,000 credit
Interest Payable 19,000 credit
Using the direct & Indirect method, prepare the cash flows from operating activities section.
In: Accounting
Identifying timing differences related to a bank reconciliation. For each timing difference listed
Question Identifying timing differences related to a bank reconciliation. For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side. In addition, identify whether the difference would be an addition or subtraction.
a. Deposit in transit
b. Bank collection
c. Debit memorandum from bank
d. EFT cash receipt
e. Outstanding checks
f. $1,000 deposit erroneously recorded by the bank as $100
g. Service charges
h. Interest revenue
i. $2,500 cash payment for rent expense erroneously recorded by the business as $250
j. Credit memorandum from bank
In: Accounting
A monopolist has a demand curve given by P = 92 - 8Q and a total cost curve given by TC = 60Q.
A monopolist has a demand curve given by P = 92 - 8Q and a total cost curve given by TC = 60Q.
- The associated marginal cost curve is MC = 60. What is the monopolist's marginal revenue curve?
- MR = 70 - 8Q
- MR = 92 - 16Q
- MR = 70 - 8Q
- MR = 56 - Q
- none of the above
- And what is the monopolist's profit maximizing quantity?
- 2
- 6
- 18
- 9
- none of the above
- And what price will the monopolist charge?
- 50
- 76
- 9
- none of the above
- And how much economic profit will the monopolist earn?
- 36
- 32
- 90
- d. 162
- e. none of the above
In: Economics
The following are T-accounts for Jones’s Consulting with the balances provided. Asset Dec. 31 142,000 Liabilities...
The following are T-accounts for Jones’s Consulting with the balances provided.
| Asset | |||
| Dec. 31 | 142,000 | ||
| Liabilities | |||
| 51,000 | Dec.31 | ||
| Marcy Jones, Capital | |||
| 71,800 | Dec. 31 | ||
| Rent Expense | |||
| Dec. 31 | 9,100 | ||
| Marcy Jones, Withdrawals | |||
| Dec. 31 | 38,000 | ||
| Salaries Expense | |||
| Dec. 31 | 27,000 | ||
| Income Summary | |||
| Insurance Expense | |||
| Dec. 31 | 1,500 | ||
| Services Revenue | |||
| 103,000 | Dec. 31 | ||
| Depreciation Expense | |||
| Dec. 31 | 8,200 | ||
Required:
a. Prepare closing entries at December 31,
2020.
b. Post the journal entries to the T-accounts.
c. Prepare a post-closing trial balance.
In: Accounting