Question

II. Solve the following problems

a. The supply and demand equations for a certain product
are:

3q - 200p + 1800= 0

3q + 100p - 1800= 0

Respectively, where p represents the price per unit in dollars
and q the number of units sold per period. Find the equilibrium
price.

b. A manufacturer of children’s toys will break even at a
sales volume of $200,000. Fixed costs are $40,000 and each unit of
production sells for $5. Determine the variable cost per
unit.

Answer #1

II)

a)

3q-200p+1800=0 ----(1)

3q+100p-1800=0 ----(2)

Subtract equation (2) from equation (1)

(3q-200p+1800)-(3q+100p-1800)=0

-300p+3600=0

p*=12

Now set p=12 in equation (2)

3q+100*12-1800=0

3q-600=0

q*=200

So,

**Equilibrium price=p*=$12**

**Equilibrium quantity=q*=200**

b)

Break even sales=BES=$200000

Price P=$5

Break even sales in units=BES/p=200000/5=40000

Let variable cost per unit be V. We know that

BEP=Fixed cost/(P-V)

40000=40000/(5-V)

5-V=1

**V=$4 (Variable cost per unit)**

The supply and demand equations for a product have been
estimated to be: S : p = 5q − 3, D : p = −3q + 21 where p is the
price in dollars per product and q is the quantity in
thousands.
What is the equilibrium quantity?
Find the equilibrium price.
Shortage or surplus when the price is $7.5. Explain

Suppose that a market is described by the following supply and
demand equations:
QS = 2P
QD = 400 - 3P
Suppose that a tax of T is placed on buyers, so the new demand
equation is
QD = 400 – 3(P+T)
Solve for the new equilibrium. What happens to the price
received by sellers, the price paid by buyers, and the quantity
sold?
Tax revenue is T x Q. Use your answer from part (b) to solve for
tax...

Suppose the weekly demand for a certain good in thousands of
units, is given by the equation P = 35 - Q, and the weekly supply
curve of the good by the equation P = 15 + Q where P is the price
in dollars. Finally, suppose a per-unit tax of $6, to be collected
from sellers is imposed in this market. Complete the following
questions. Note: If necessary round your answers to two decimal
places.
a) Graph the weekly...

The following data (in thousands of dollars) have been taken
from the accounting records of TCorp for the just completed
year:
Administrative expenses $ 600
Direct labor 800
Finished goods inventory, beginning 480
Finished goods inventory, ending 640
Manufacturing overhead 920
Purchases of raw materials 480
Raw materials inventory, beginning 160
Raw materials inventory, ending 280
Sales 3,960
Selling expenses 560
Work in process inventory, beginning 280
Work in process inventory, ending 200
Answer the two questions below.
1)
What...

A) Micro Co., which began business at the start of the current
year, had the following data:
Planned and actual production:
40,000 units
Sales: 37,000 units at $15 per
unit
Production costs: Variable: $4 per
unit, Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit, Fixed: $32,000
Contribution margin that Micro would disclose on an
absorption-costing income statement is:
a. $147,000 b. $78,000 c. $166,500 d. $0 e. 370,000
B) The variable costing to the...

1. What is an ISP (Integrated Service Provider) for supply
chains? (1 point)
A. A consultant agency which integrates the supply chain for
companies
B. A 2 PL or a 3PL, but not a 4PL
C. A company supplying transportation and warehousing
services
D. A logistics service company specialized in suppling VAS (value
added
services)
2. What characterizes a 4 PL? (1 point)
A. They are non-asset based and provides integrated services
primarily
supplied by asset based providers, for example...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 3 minutes ago

asked 5 minutes ago

asked 6 minutes ago

asked 11 minutes ago

asked 12 minutes ago

asked 13 minutes ago

asked 17 minutes ago

asked 19 minutes ago

asked 19 minutes ago

asked 19 minutes ago

asked 19 minutes ago