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1) Given market demand Qd = 50 - P, and market supply P = Qs + 5
A) Find the market equilibrium price and quantity?
B) What would be the state of the market if market price was fixed at Birr 25 per unit?
1) Consider a consumer with a utility function U (x, y) =X2 + Y2, the consumer intends to spend birr 80 on the two goods and price of good X and price of good Y are birr 2 and birr 4, respectively
A. Calculate the optimum consumers consumption amount of X and Y
B. Find the maximum utility that consumer obtain from consuming the two goods?
C. Calculate MRSxy at equilibrium, and interpret your result
1) Suppose the average revenue of a short run perfectly competitive firm is 2 and its Marginal cost and fixed cost is given as: MC=3Q2 -8Q+6 and TFC=10 then,
A. Derive the function of TC, AVC and TR
B. Calculate equilibrium price and quantity
A. Find the profit at the equilibrium point and identify whether the firm makes positive profit, normal profits or incurs loss.
B. What price is needed for the firm to stay in the market?
What happen to market equilibrium when demand decrease supply increase
6. Complete the following financial statements of Omega Company on the basis of the ratios given below. Omega Company Profit and loss account For the year ended June 30 2001 Sales 2,000,000 Cost of Goods Sold 600,000 Gross Profit 1,400,000 Operating Expenses 1,190,000 Earnings Before Interest and Tax.....A?
Debenture Interest 10,000
Income Tax....B?
Net Profit.....C?
Omega Company Balance sheet For the year ended June 30 2001 Assets Liabilities Cash...D? Sundry creditors 60,000 Stocks....E? 10% Debentures...I?
Debtors 35,000 Total liabilities... J?Total Current Assets.. F?Reserve and Surplus....K? Fixed Assets.... G? Share Capital...L? Total Assets..... H?Total Liability and Equity...M?
Additional Information: A. Net Profit to Sale 5% D. Inventory Turnover 15 times B. Current Ratio 1.5 E. Share Capital to Reserve 4:1 C. Return on Net Worth 20 % F. Tax Rate 50 %
June 30, 2021, a flash flood damaged the warehouse and factory of a particular manufacturing company, completely destroying the work in process inventory. There was no damage to either the direct materials or finished goods inventories. A physical inventory taken after the flood revealed the following costs Direct material $62,000Work in process -0-Finished goods 119,000The inventory on June 1, 2021, consisted of the following Direct material $30,000Work in process 100,000Finished goods 140,000A review of the records disclosed that the gross margin historicallyapproximated 25% of sales. The sales for the first six months of 2021 were $340,000. Direct material purchases were $1150,000. Direct labor costs for this period were $80,000, and manufacturing overhead has historically been 50% of direct labor hour.Required: Compute the cost of work in process destroyed on June 30, 2021
5. Complete the following Balance Sheet based on the given data Total Debt to Owners Equity is 0.6 Current Debt to Total Debt is 0.4 Fixed Asset to Owners Equity is 0.6 Total Asset Turnover is 2 Inventory Turnover is 8 Gross profit 40% .
Cash............
Inventory........
Total current asset....
Fixed asset...........
Current liability...........
Long term debt..........
Total debt..............
Owner's equity..........1000
Total liability and owner's equity...
Latin Corporation’s breakeven point in revenues is $1,000,000 and fixed costs is $400,000Required: 1)Compute the contribution margin ratio2)Compute the selling price if variable costs are $12 per unit3)Suppose 80,000 units are sold, compute the margin of safety
Does a competitive firm’s price equal the minimum of its average total cost in the short run, in the long run, or both? Explain.
Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? Explain
#331389 on Nov 2022