Answer:
Consider average cash balance that was at the end of previous month and estimate the current month average cash balance and add or less any major increment that makes the forecasting realistic.Use excel or other softwares for forecasting purposes as it automatically adjusts the worksheet if corrections or additions are included in the computation.Explanation:
The interest earned would be calculated at the end of every day on the cash balance that the company holds in the interest-bearing bank account.
The cash balance would be adjusted to reflect realistic assumptions were made because unrealistic assumptions makes the forecasting unreasonable and meaningless. The first step is to take the previous month end average cash balance and add in it the current month average balance. This will give us the current month cash balance that will be based on realistic assumptions. Use the excel sheets to take affects of estimated cash and other factors that will change due to the change in the cash balances. Excel will take account of all the factors adjusted in the forecasting sheet and adjust these factor's effects within seconds.
Functioning as a Bill of Rights for Americans with all types of disabilities, the Worker Adjustment and Retraining Notification Act prohibits discrimination in advancement, discharge, compensation, training, and other terms and conditions of employment.
a. True
b. False
Answer:
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I think it can be A.true
Hope this helps u
Sorry if I am wrong but I tried my best :)))
Can I please get brainliest?
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By: umm me....
Which of the following is a characteristic of a firm’s optimal dividend policy? It maximizes the firm’s stock price. It maximizes the firm’s return on equity. It maximizes the firm’s earnings per share. It maximizes the firm’s total assets.
Answer:
It maximizes the firm’s stock price.
Explanation:
The correct answer is “it maximizes the firm’s stock price” because the optimal dividend policy allows the variable risk parameters and it maximizes the firm’s value. Moreover, the dividend policy attracts the shareholders and it maintains the firm’s or the company’s worth in the market. Therefore, the optimal payment of dividend increases or maximizes the stock price.
John Q. Public spends all of his income on gas and burgers. Draw his budget constraint for these products when the following are true:
A. Graph A: his income is $80, the cost of a CD is $2 and a cost of a burger is $2.
B. Graph B: his income is $120, the cost of a CD is $2 and the cost of a burger is S2.
C. Graph C: his income is $80, the cost of a CD is $5 and the cost of a burger is $2.
D. Add an indifference curve into graph A. How many CDs and burgers will he buy to be at equilibrium?
E. Add an indifference curve into graph B. How many CDs and burgers will he buy to be at equilibrium?
F. Add an indifference curve into graph C. How many CDs and burgers will he buy to be at equilibrium?
G. Does the equilibrium level of CDs and burgers change due to the changes in income and costs?
On Jan 15th, Mr. White discovered that the net income for the previous year was understated by $60,000. Mr. Black tells Mr. White that this net income of $60,000 should be shared in the proportion of their current capital balances. (Mr. White = 150,000/$250,000 = 60% = $36,000; Mr. Black = $100,000/$250,000 = 40% = $24,000). But Mr. White feels that the additional income should be shared in the ratio of 2:1 ($60,000 x 2/3 = $40,000 Mr. White; $60,000 x 1/3 = $20,000 Mr. Black). Who is correct? Why?
Answer:
Mr. Black is correct. There is a basis established by their current capital balances. Mr. White's ratio of 2 : 1 has not discernible basis, unless that has been their profit sharing ratio.
Explanation:
In the absence of any contrary agreement, partners in a partnership business always share their net income based on their capital contributions. Sometimes, this may not be strictly followed, especially with changes effected over the years, it becomes necessary to adopt home-grown solutions. One of such is the current capital balances, instead of the original capital contributions. This approach takes care of changes and value contributions over a number of years that the business has been in operation, which the current capital accounts will always show.
On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000. On that date. Sales Company's stockholders' equity consisted of common stock, $100,000; other contributed capital, $40,000; and retained earnings, $140,000. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value.
During 2014 Sales Company earned $148,000 and declared and paid a $50,000 dividend. Pert Company used the partial equity method to record its investment in Sales Company.
Required:
1. Prepare the investment-related entries on Pert Company's books for 2014.
2. Prepare the working paper eliminating entries for a working paper on December 31, 2014.
Answer and Explanation:
The journal entries are shown below:
a. For investment related entries
Investment in sales Dr $350,000
To cash $350,000
(being the investment is recorded)
Investment in sales Dr ($148,000 × 85%) $125,800
To Subsidiary income $125,800
(Being the investment in sales is recorded)
Cash Dr $42,500
To Dividend income $42,500
(Being the dividend income is recorded)
b. For work paper eliminating entries
Equity income ($148,000 × 85%) $125,800
To Dividend $42,500
To investment in sales $83,300
(Being the equity income is recorded)
Common stock Dr $100,000
Other contributed capital Dr $40,000
Retained earnings Dr $140,000
Difference between implied and book value Dr $131,765 (Bal figure)
To Investment in S Company $350,000
To Non controlling interest $61,765 ($350,000 ÷ 0.85 × 0.15)
(Being the consolidated items are recorded)
Land Dr $131,765
To Difference between implied and book value Dr $131,765
(Being the land is recorded)
Working note:
Particulars Parent share Non-conrolling interest Total value
Purchase price
& implied value $350,000 $61,765 $411,765
Less:
Book value -$238,000 -$42,000 -$280,000
Difference
amount $112,000 $19,765 $131,765
Less:
Land value -$112,000 -$19,765 -$131,765
Balance $0 $0 $0
Wikipedia's engagement of readers and the public in developing content, with an emphasis on timeliness and the breadth of content, exemplifies this type of value innovation:
Answer: Raise
Explanation:
The options for the question are:
a. Raise
b. Create
c. Reduce
d. Eliminate
Wikipedia is used by people that are involved in academics or anyone that is seeking information as it gives information regarding different topics and issues.
Wikipedia's engagement of readers and the public in developing content, with an emphasis on timeliness and the breadth of content, exemplifies this type of value innovation raise.
Wikipedia is utilized by academicians and anybody looking for knowledge since it provides information from a wide range of topics and situations.
This form of value innovation raising is shown by Wikipedia's participation of users and the public in producing content, with a concentration on immediacy and breadth of material.
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Exercise C The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these four price-quantity relationships: Demand 1 9,000 cups at $1.00 per cup 2 8,000 cups at $1.25 per cup 3 6,000 cups at $1.50 per cup 4 4,000 cups at $1.75 per cup The fixed costs of $3,000 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup. What price should Specialty Coffees set for espresso
Answer:
It should price the espresso at $1.25
Explanation:
[tex]\left[\begin{array}{ccccc}&D1&D2&D3&D4\\$Sales Price&1&1.25&1.5&1.75\\$Variable Cost&0.25&0.25&0.25&0.25\\$Margin&0.75&1&1.25&1.5\\$Quantity&9,000&8,000&6,000&4,000\\$Contribution&6,750&8,000&7500&6,000\\$Fixed Cost&3,000&3,000&3,000&3,000\\$Income&3,750&5,000&4,500&3,000\\\end{array}\right][/tex]
The best Income is generated at the price of 1.25 dollar
Therefore, this is the amount to Specialty Coffees set for espresso.
1. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 10 years, or 386,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,600 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method.
2. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 10 years, or 386,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,600 units of product. Determine the machine's second-year depreciation using the double-declining-balance method.
Answer:
1) Determine the machine's second-year depreciation and year end book value under the straight-line method.
depreciation expense per year = (purchase cost - salvage value) / useful life
depreciation expense per year = ($84,200 - $7,000) / 10 = $7,720
book value at the end of year 2 = $84,200 - ($7,720 x 2) = $68,760
2) Determine the machine's second-year depreciation using the double-declining-balance method.
depreciation year 1 = 2 x 1/10 x $84,200 = $16,840
depreciation year 2 = 2 x 1/10 x $67,360 = $13,472
book value at end of year 2 = $67,360 - $13,472 = $53,888
Assume that we are in the MM world. The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40 percent debt and 60 percent equity. What is the equity beta of the levered firm
Answer:
2.3
Explanation:
Levered Beta = Unlevered Beta x (1+D/E)
D/E = Debt-to-Equity Ratio
1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3
When using the equity method, receipt of cash dividends increases the carrying (book) value of an investment in equity securities.
A. True
B. False
MONTGOMERY INC.
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 30,800 $ 31,000
Accounts receivable, net 8,900 10,900
Inventory 79,800 63,000
Total current assets 119,500 104,900
Equipment 44,200 37,300
Accum. depreciation—Equipment (19,900) (13,800)
Total assets $ 143,800 $ 128,400
Liabilities and Equity
Accounts payable $ 21,200 $ 22,900
Salaries payable 400 500
Total current liabilities 21,600 23,400
Equity
Common stock, no par value 102,400 94,100
Retained earnings 19,800 10,900
Total liabilities and equity $ 143,800 $ 128,400
MONTGOMERY INC.
Income Statement
For Current Year Ended December 31
Sales $ 38,500
Cost of goods sold (16,000)
Gross profit 22,500
Operating expenses
Depreciation expense $ 6,100
Other expenses 4,700
Total operating expense 10,800
Income before taxes 11,700
Income tax expense 2,800
Net income $ 8,900
Additional Information on Current-Year Transactions
1. No dividends are declared or paid.
2. Issued additional stock for $8,300 cash.
3. Purchased equipment for cash; no equipment was sold.
Use the above information to prepare a statement of cash flows for the current year using the indirect method. (A
Answer:
Montgomery Inc.
Statement of Cash Flow, using the indirect method:
Net income $ 8,900
adjusting non-cash expense:
Depreciation 6,100
Net Cash from operations $15,000
Add: Working Capital:
Accounts receivable (2,000)
Inventory (16,800)
Accounts Payable (1,700)
Salaries payable (100)
Cash from operating activities ($5,600)
Investing Activities:
Purchase of Equipment (6,900)
Financing Activities:
Issue of additional stock 8,300
Net cash flow $4,200
Explanation:
MONTGOMERY INC. Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 30,800 $ 31,000
Accounts receivable, net 8,900 10,900
Inventory 79,800 63,000
Total current assets 119,500 104,900
Equipment 44,200 37,300
Accum. depreciation: Equipment (19,900) (13,800)
Total assets $ 143,800 $ 128,400
Liabilities and Equity
Accounts payable $ 21,200 $ 22,900
Salaries payable 400 500
Total current liabilities 21,600 23,400
Equity
Common stock, no par value 102,400 94,100
Retained earnings 19,800 10,900
Total liabilities and equity $ 143,800 $ 128,400
MONTGOMERY INC.
Income Statement
For Current Year Ended December 31
Sales $ 38,500
Cost of goods sold (16,000)
Gross profit 22,500
Operating expenses
Depreciation expense $ 6,100
Other expenses 4,700
Total operating expense 10,800
Income before taxes 11,700
Income tax expense 2,800
Net income $ 8,900
b) The indirect method of preparing the statement of cash flows starts with the net income and uses the balances in the balance sheet to determine if they are net cash outflows or inflows.
If oligopolistic firms banded together with the intention of acting like a monopoly, it would likely result in their being able to Group of answer choices
Answer:
a. divide up the monopoly level of profit amongst themselves
Explanation:
Here are the options :
a. divide up the monopoly level of profit amongst themselves
b. hold down output in the short-run
c. charge a higher price in the short-run
d. both b and c are correct
An oligopoly is when there are few firms operating in an industry.
characteristics of an oligopoly includes :
1. few large firms operating in the industry
2.high barriers to entry or exit of firms.
when oligopolistic firms banded together with the intention of acting like a monopoly, it is known as a collusion.
when there is a collusion, the firms act like a monopoly, that is they decide on the price or quantity to sell at. the profits they earn is divided among the firms
Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after-tax earnings of $9,700,000 and has issued 7,000,000 shares of common stock. The stock is currently selling for $32 a share. a. Calculate the earnings per share for National Computers. (Round your answer to 2 decimal places.) b. Calculate the price-earnings (PE) ratio for National Computers. (Use the rounded earnings per share from part a. Round your answer to 2 decimal places.)
Answer:
1. Earnings per share = $1.39
2. Price earning ratio = $23.02
Explanation:
1. Earnings per share = After tax income / Number of shares
Earnings per share = $9,700,000 / 7,000,000
Earnings per share = $1.39
2. Price earning ratio = Price per share / Earning per shares
Price earning ratio = $32 / $1.39
Price earning ratio = $23.02
a. Galaxy Sales has sales of $746,700, cost of goods sold of $603,200, and inventory of $94,300. How long on average does it take the firm to sell its inventory
Answer:
days of inventory on hand if 360 days is used = 360 / 6.396607 = 56.28 days
days of inventory on hand if 365 days is used = 365 / 6.396607 = 57.06 days
Explanation:
We are to determine the days of inventory on hand
days of inventory on hand = number of days in a period / inventory turnover
inventory turnover = cost of goods sold / inventory - $603,200 / $94,300 = 6.396607
days of inventory on hand if 360 days is used = 360 / 6.396607 = 56.28 days
days of inventory on hand if 365 days is used = 365 / 6.396607 = 57.06 days
Goods that are specifically made for the buyer and are of such an unusual nature that they are not suitable for trade in the ordinary course of the seller's business are called _____.
Answer:
non-resellable goods
Explanation:
Sometimes goods that are so uniquely customized in order to fit or serve only one client, cannot be sold to anyone else. This type of goods are considered non-resellable since it is very difficult or very unusual for another customer to purchase such a good.
E.g. suppose that you have a lot of money but at the same time like rainbows and decide that you are going to purchase a Porsche, but you are going to customize with a rainbow like paint and interior. This car would be so unique that only you would buy it and drive it.
7. What is the advantage of binding things as early as possible? What is the advantage of delaying bindings?
Answer:
1. early binding enhances performance
2. late binding gives flexibility
Explanation:
this is generally the advantage of early binding. early binding gives room for better efficiency
.This is because it would be needless to reanalyze every time whenever something is declared. Early binding is for performance.
meanwhile late binding is known to have better flexibility and gives room for more polymorphism. this binding gives extension to runtime.
Suppose the economy is in a recession. The economy needs to expand by at least $300 billion, and the marginal propensity to consume is 0.6. What is the least amount the government can spend to overcome the $300 billion gap
Answer: $120 billion
Explanation:
Fron the question, we are told that an economy is in a recession and needs to expand by at least $300 billion, and the marginal propensity to consume is 0.6.
The least amount the government can spend to overcome the $300 billion gap goes thus:
Since MPC = 0.6, then the multiplier will be:
= 1/(1-MPC)
= 1/(1-0.6)
= 1/0.4
=2.5
We are also informed that the required change in the money supply is $300 billion. Then, the investment needed will be:
= Expansion/Multiplier
= $300 billion/2.5
= $120 billion
A clothing manufacturer produces clothing in five locations in the U. S. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows:
Location (X,Y)
A 7,2
B 4,7
C 5,5
D 2,2
E 9,4
Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location of X for the fabric plant?
Answer:
The optimal location of X for the fabric plant is 4.9
Explanation:
X Y W X.W Y.W
A 7 2 200 1400 400
B 4 7 400 1600 2800
C 5 5 300 1500 1500
D 2 2 300 600 600
E 9 4 200 1800 800
Total = 1,400 6,900 6,100
X= 6,900 / 1,400 = 4.9
Y= 6,100 / 1,400 = 4.4
a) While excavating, the Contractor hits a rock layer. Since the plans and soil report did not mention such rock, the contractor files a claim under: i. Force majeure. ii. Differing site conditions. iii. Design errors/omissions. iv. Unusual weather conditions. v. Changes in owner’s requirements.
Answer:
Differing site conditions
Explanation:
A differing site condition is a condition that has been changed. Since the plan did not mention this rock, the contractor can file a claim under this.
It is a hidden physical condition that is discovered at a site which is actually different from what was expected. It can also be regarded as unforeseen site condition.
"A municipality has a tax rate of 18 mills. A piece of real property in the municipality is assessed at $180,000 and has a fair market value of $165,000. The annual tax liability on the property is:"
Answer:
$3,240
Explanation:
Calculation for the annual tax liability on the property
Using this formula
Annual tax liability= (Tax rate× Real property )
Where= Tax rate =18 million
Real property=180,000
Let plug in the formula
Annual tax liability=( .018x180000)
Annual tax liability=$3,240
Therefore the annual tax liability on the property is $3,240
Charlie Plumbing Supplies has a return on assets (ROA) of 24%, while the industry average of similar companies is 13%. This means that Charlie Plumbing Supplies' asset turnover is higher than the industry average.
a. True
b. False
Fortune Enterprises is an all-equity firm that is considering issuing $13.5 million of perpetual debt. The interest rate is 10%. The firm will use the proceeds of the bond sale to repurchase equity. Fortune distributes all earnings available to stockholders immediately as dividends. The firm will generate $3 million of earnings before interest and taxes (EBIT) every year into perpetuity. Fortune is subject to a corporate tax rate of 40%. Suppose the personal tax rate on interest income is 55%, and the personal tax rate on equity income is 20%.
What is the annual after-tax cash flow to debt holders under each plan in Q7?
A. Debt holders get $0 mil. under the unlevered plan vs. 1.2 mil. under the levered plan
B. Debt holders get $1.2 mil. under the unlevered plan vs. 0.66 mil. under the levered plan
C. Debt holders get $0 mil. under the unlevered plan vs. 0.66 mil. under the levered plan
D. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan
Answer:
D. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan
Explanation:
interests paid to debt holders = $13,500,000 x 10% = $1,350,000
generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).
under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.
under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500
Researchers often are particularly interested in the subset of a market that contributes most to sales (for example, heavy beer drinkers or large-volume retailers). What type of sampling might be best to use with such a subset? Why?
Answer:
1122
Explanation:
Stratified Sampling is the type of sampling might be best to use with such a subset.
What is Stratified Sampling?In stratified sampling, respondents are divided into groupings known as strata based on shared traits. A different probability sampling technique is used to randomly sample each subgroup once it has been divided.
When a population has a variety of subgroups, stratified sampling is useful to ensure that every group is represented in the sample. Mere random sample and systematic sampling might not be able to fully represent all of these groupings, especially the relatively uncommon ones.
However, proportional stratified random sampling, where a population is divided into strata and a random sample is subsequently drawn from each in proportion to its size, is arguably the most prevalent variety. For instance, if the population as a whole has 60% females and 40% males.
Thus, Stratified Sampling.
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To determine the realized return on an investmen, the investor needs to know:________
1. Income received
2. The cost of an investment
3. The sale price of the investment
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The correct answer all of the above is missing
Explanation:
In order to determine the realized return on investment, for instance, stock, one needs to the income received(dividend) the initial purchase price as well as the sale price of the investment as shown in the formula below:
return on investment=P1-Po+D/Po
P1 is the sale price of investment
Po is the initial cost of investment
D is the income received
Select a problem that a firm might have bringing out a new product or service and discuss how the firm could overcome that problem.
Explanation:
A potentially serious problem for a company is to launch a new product or service on the market without conducting marketing research to investigate the acceptance of its product to its target audience.
Marketing research is an essential tool for a company to collect relevant data and information about what the consumers' needs and desires are, what benefits they expect from a product or service, what features the product should have, the design, the price, and several other essential variables to help the company better understand the market and make the best decisions when launching a new product
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 52,000 8,000 direct labor-hours
Machine-related $ 15,000 20,000 machine-hours
Machine setups 42,000 1,000 setups
Production orders 18,000 500 orders
Product testing $48,000 2,000 tests
Packaging $ 75,000 5,000 packages
General factory 108,800 8,000 direct labor-hours
a. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
b. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)"
Answer and Explanation:
a. The computation of the activity rate is shown below:
(a) (b) (a ÷ b)
Activity Estimated Expected Activity rate
Cost Pool Overhead Cost Activity
Labor-related $52,000 8,000 $6.50
direct labor-hours
Machine-related $15,000 20,000 $0.75
machine-hours
Machine setups 42,000 1,000 setups $42
Production orders 18,000 500 orders $36
Product testing $48,000 2,000 tests $24
Packaging $75,000 5,000 packages $15
General factory 108,800 8,000 $13.60
direct labor-hours
Total $358,800
b. The company predetermined overhead rate is shown below:
= Total estimated overhead cost ÷ direct labor hours
= $358,800 ÷ 8,000 direct labor hours
= $44.85
"Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $34, direct labor $27, variable manufacturing overhead $15, fixed manufacturing overhead $43, variable selling and administrative expenses $20, and fixed selling and administrative expenses $28. Its desired ROI per unit is $31. Compute the markup percentage using absorption-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.)"
Answer:
Mark- up = 26.05%
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit
Full cost per unit= Direct material cost + direct labor cost + variable manufacturing overhead + fixed manufacturing overhead
Note that the selling and administrative expenses are period cost which are not to be considered as production cost, hence they are excluded.
Full cost per unit= 34 + 27 +15 +43 = 119
ROI per unit/profit per unit = 31
Mark- up under absorption costing is profit expressed as a percentage of of the full cost.
Mark- up = 31/119 × 100 = 26.05%
Mark- up = 26.05%
From past records it is known that 10% of items from a production line are defective. If two items are selected at random, what is the probability that only one is defective?
Answer:
0.2
Explanation:
The Probability distribution is the function which describes the likelihood of possible values assuming a random variable. The 10% of the items from the production line are assumed to be defective. There is a sample selection of 2 items. The probability that one of the item among the selected sample of two items is found defective is 0.2 (2 items sample *10%)
Sunland Company reported the following information for 2016: October November December Budgeted sales $1300000 $1200000 $1540000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Sunland receive in November?
Answer:
Total cash receipts - November = $1250000
Explanation:
The credit sales are collected for in such a manner that the 50% amount of this month's sale and the 50% amount of previous month's sales are collected in the correct month. Thus, when calculating the cash receipts for November, we know that the 50% of collections will be for October's sales and the 50% of collections will be from the November's sales.
Cash receipts in November:
From October's sales = 1300000 * 0.5 = $650000
From November's sales = 1200000 * 0.5 = $60000
Total cash receipts - November = 650000 + 600000
Total cash receipts - November = $1250000
Exhibit 24-4 Price Quantity Demanded Total Fixed Cost Total Variable Cost Total Revenue Total Cost Marginal Revenue Marginal Cost $50 0 $8 $0 (C) (H) 45 1 8 20 (D) (I) (L) (R) 40 2 (A) 30 (E) (J) (M) (S) 35 3 8 55 105 63 (N) (T) 30 4 8 (B) (F) 93 (P) (U) 25 5 8 125 (G) (K) (Q) (V) Refer to Exhibit 24-4. What dollar amounts go in blanks (F), (G), (H), (I), and (J), respectively
Answer:
F = Total Revenue at 4 units
= Price * Quantity demanded
= 30 * 4
= $120
G = Total Revenue at 5 units
= Price * Quantity demanded
= 30 * 5
= $150
H = Total Cost at 0 units
= Fixed Costs + Variable Costs
= 8 + 0
= $8
I = Total Cost at 1 unit
= Fixed Costs + Variable Costs
= 8 + 20
= $28
J = Total Cost at 2 units
= Fixed Costs + Variable Costs
Fixed costs are fixed at $8 so (A) is $8
= 8 + 30
= $38