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natali 33 [55]
2 years ago
5

Suppose that the owner of a smartphone monopoly hires you to determine whether his firm has made the profit-maximizing number of

smartphones. He provides you with the following production and sales information for the first six months of 2016.
Month Sales MR of last unit MC of last unit

January 2016 10,000 $250 $225

February 2016 10,500 $230 $230

March 2016 11,000 $220 $210

April 2016 10,500 $210 $220

May 2016 12,000 $200 $210

June 2016 11,000 $220 $220

a.In which months should the firm have produced fewer smartphones?
b.In which months should the firm have produced more smartphones?
c.In which months was the firm maximizing profits?
Business
1 answer:
enot [183]2 years ago
4 0

Answer:

A. January 2016

B. May 2016

C. June 2016

Explanation:

Req. A

From the data table above, it is easy to understand that only 10,000 mobile phones were sold in the month of January.

Req. B

From the information above, the highest sales level was in the month of May with a 12,000 smartphones.

Req. C

We know, a monopolist maximizes its profit when marginal revenue equals to the marginal cost. MR = MC.

In that case, two months had equal marginal revenue = marginal cost, i.e., February and June.

According to the maximizing rule, at which point there are a high number of sales and MR = MC, that sales point is considered as maximizing profit.

Therefore, in the month of June, the sales were high with 11,000 smartphones. Hence, June was the firm's maximizing profit.

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The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory,
34kurt

Answer:

$252,000

Explanation:

Calculation for the cost of goods sold for the Askew Company for the year ending June 30, 2021.

First step is to calculate the Net Purchase

Purchases 259,000

Less Purchase discounts (7,900)

Less Purchase returns (11,900)

Add Freight-in 20,800

Net purchase 260,000

Now let calculate the cost of goods sold

Inventory, 7/1/2020 33,900

Add 260,000

Less inventory balance ($41,900)

Cost of goods sold $252,000

Therefore the cost of goods sold for the Askew Company for the year ending June 30, 2021 will be $252,000

5 0
1 year ago
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 compu
kherson [118]

Answer:

$1,840

Explanation:

In order to calculate the Marginal cost of producing the computers in 2nd hour of work, we need to add the marginal cost of computer and marginal cost of wage in the 2nd hour of work.

MC = MC(computers) + MC(wage)

MC = $1,800(w) + $40

MC = $1,840

Working

MC (computers ) = 3 x 600$ = $1,800

                hour        computers assembled

                    1st                        4

                    2nd                      7

If pam works 2 hours she can assemble 7 computers but she already assembled 4 computers in 1st hour.

So the 2nd-hour computers will be 3 ( 7 - 4) computers.

4 0
1 year ago
Marigold Corp. sells radios for $50 per unit. The fixed costs are $545000 and the variable costs are 60% of the selling price. A
Montano1993 [528]

The new break-even point in units is: $23,200

Solution:

Given,

Marigold Corp. sells radios for $50 per unit

Fixed costs = $545000

Variable costs = 60%

As a consequence of the modern electronic facilities, the fixed costs are projected to rise by $35,000 and the variable costs would be 50% of the purchase price.

Now,

The new break-even point in units is:

= $545000 + $35000

= $580,000

=> 580,000/25 = $23,200

7 0
1 year ago
A 180-day $3 million CD has a 4.25 percent annual rate quote. If you buy the CD, how much will you collect in 180 days?
Katarina [22]

Answer:

$3,063,750

Explanation:

A 180 day $3,000,000 CD

Annual rate = 4.25%

Collection in 180 days = ?

$3,000,000 * 4.25% * 180/360

= $3,000,000 *  0.02125

= $63,750

Total amount to collect after 180 days = $3,000,000 + $63,750

Total amount to collect after 180 days = $3,063,750

8 0
1 year ago
Chris has been newly appointed as the head of the HR team at Cuffington Corp. In an attempt to establish a more efficient and re
pentagon [3]

Answer:

KSAOs play a significant role in interviews and selection decisions

Explanation:

According to the given situation, Chris has been hired as an HR team at C Corp. and he took the responsibility of developing job descriptions and specialization for the vacancy of engineers.

Here Chris collects relevant data about the KSAO's so that he can choose a specialized engineer for an organization.

So, in the above case,  the relevant answer is KSAOs play a significant role in interviews and selection decisions.

8 0
1 year ago
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