Suppose a monopolist's profit-maximizing output is 500 units per week and that the firm sells its output at a price of $50 per unit. Thefirm has total costs of $7,000 per week. Assume the monopolist is maximizing its profit and earns $35 per unit from the sale of the lastunit produced each week.Instructions: Enter your answers as a whole number.a. What are the firm's weekly economic profits?b. What is the firm's marginal cost?c. What is the firm's average total cost?

We get economic profit as below - Economic profit = Sales - All explit &…

Answered: Suppose a monopolist's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Jeff Music sells its brand of banduria at $167.00 each. The company spends costs of $38.00 to produce each banduria. The corresponding weekly fixed costs are $16,900.00. a. What is the linear equation of the weekly profit, P, to the quantity of banduria produced, X. b. Determine the break-even quantity? c. What is the break-even revenue? d. What will be the profit or loss if there will be 147 qty of banduria?
Your firm sells widgets for $10 each. You make a gross profit of $3 on each widget. You have $300,000 of operating costs. Your company is exactly at break-even. What is the dollar amount of your cost of goods sold? Your firm has a gross profit of 15%. Your firm has operating costs of $75,000 per month. How much monthly revenue do you need to break-even?
Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery. a. What is the MRP per driver per day? b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60 packages per day. What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced? c. How many packages per day would each vehicle have to deliver in order to maintain the firm’s profit per vehicle after supervisors are introduced? d. Suppose that the number of packages delivered per day cannot be increased but that the price per delivery might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm’s profit per vehicle…
5.An account executive receives a base salary plus a commission. On $30,000 in monthly sales, an account executive would receive compensation of $3100. On $50,000 in monthly sales, an account executive would receive compensation of $4300. Determine a linear function that yields the compensation y of a sales executive for a given amount of monthly sales x(. )? Use this model to determine the compensation of an account executive who has $85,000 in monthly sales. $ ? 6.A manufacturer of graphing calculators has determined that 8,000 calculators per week will be sold at a price of $85 per calculator. At a price of $80, it is estimated that 12,000 calculators will be sold. Determine a linear function that predicts the number of calculators that will be sold per week at a price of x dollars.y = Use this model to predict the number of calculators that will be sold at a price of $75.(. )?calculators
A certain man works in sales and earns a base salary of $1100 per month plus 6% of his total sales for the month. (a) Explain why his total monthly income I is a linear function of total sales S, both measured in dollars. The change in I is always the same, dollar increase V , for a 1 dollar increase in S. (b) How much does he earn if he sells $1400 in merchandise in a month? (Round your answer to the nearest cent.) $ (c) Write a formula that gives total monthly income I as a linear function of sales S in a month. (Round equation parameters to two decimal places.) I = (d) What should his monthly total sales be if he wishes to earn $1350 this month? (Round your answer to the nearest cent.) $
A start-up company has the following expenses: Rent = $1,100 Utilities = $265 Material and assembly = $12.65/unit Monthly labor = $625 If its product sells for $29.99/unit, how many units must it sell to break even?
You are opening a coffee shop. You estimate the weekly costs of $375 for rent, $2100 for employee costs, and $125 for miscellaneous costs. The ingredients and material cost for each cup of coffee is 0.35 (cents) per cup. 1) Create a cost function for the coffee shop. 2) If the investors estimate that they will be able to sell 1100 cups of coffee per week. How much should they charge per cup to make a profit? Justify your answer and/or explain.
Using the data from the attached picture, compute for the following: 1. If 5,000 units are sold, what will be the store’s operating income (loss)?2. If sales commissions are discontinued and fixed salaries are raised by a total of₱810,000, what would be the annual breakeven point in (a) units sold and (b) revenues?3. Refer to the original data. If in addition to his fixed salary, the store manager is paida commission of ₱30 per unit in excess of the break-even point, what would be the store’s operating income if 10,000 units were sold.
1. A small manufacturing operation can produce a certain product that sells for P64 per unit. The variable cost per unit is P36, and the fixed cost per week is P5,600. a. How many units must they sell per week to break even? b. Determine the firm's weekly profit or loss if it sells 340 units.
17. ACCOUNTANT SALARY An accountant receives a base salary of $1500 a month plus a commission that is 4% of their monthly sales. From past experience the monthly sales range from $10,000 to $100,000. a. Write an equation for the accountant's monthly salary in terms of their monthly sales. b. Graph your equation. Make sure to scale your axes to fit the problem situation. c. How much do they need to sell in a month for this accountant to earn $3,500?
A manufacturer has a monthly fixed cost of $87,500 and a production cost of $15 for each unit produced. The product sells for $20/unit. (a) What is the cost function? CX) (b) What is the revenue function? R(x) - (c) What is the profit function? Px) - (d) Compute the profit (loss) corresponding to production levels of 15,000 and 20,000 units. (Input a negative value to indicate a loss) PL1S,000)- P(20,000) =
A company sells a toy for $12.80 each. The material, labour, and marketing costs add up to $1.00 per toy. The company also bears fixed costs of $10,100 per month related to this particular product. If the company produces and sells 850 toys each month, what is its monthly net income? Monthly net income = $ there is a loss.) (Enter your answer as negative if

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