Problems http://edugen.wiley.com/edugen/courses/crs4637/rc/jiambalvo3341c05/a... PROBLEMS PROBLEM 5-1. Variable and Full Costing: Sales Constant but Production Fluctuates [LO 1, 2, 3, 5] Spencer Electronics produces a wireless home lighting device that allows consumers to turn on home lights from their cars and light a safe path into and through their homes. Information on the first three years of business is as follows: 2011 Units sold Units produced Fixed production costs Variable production
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we mean by price ceiling and demand then compare it with another term “price floor” with similar application but opposing meaning. First let us understand the economic meaning of demand which is said to be the total buyers who are willing and able to buy the commodities in a market while Taylor, mentions that Price ceiling is described as a situation where the government sets a legitimate upper price limit or a point where a commodity price is not supposed to go above (2006). For price ceiling to
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considered a fraud attempt. Use the separate answer sheet to indicate your answers. The exam consists of 19 problems grouped in four parts, each with different types of problems. For the basic problems, multiple choice problems and calculation problems you will score 3, 4 and 5 points, respectively, per correct answer and no points for incorrect answers. For the open problems (8 points per problem) your score will depend on the answer and the calculation. The exam grade is the result from the formula
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Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and
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stores are increasing competitorThe Dollar General (DG), , Family dollar, Aldi poses threat due to its remarkable low price, • Jack Morrissey, CEO of Reed Supermarket • Other supermarkets like Wal-Mart, Costco • Higher-end customers • Food manufacturers—aldi, trader joe’s, sell mostly private label merchandise Limited selection stores a) The main problem or two key problems. • Declining shares in the past in the Columbus, Ohio market—the fight for market share is very intense due to large
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the shareholder-principal conflict with manager-agents known as the principal-agent problem. To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devote more to executive salary and bonus (cash compensation) or more to long-term incentives? Why? What role does each type of pay play in motivating managers? The dimensions of the principal agent problem are: Principals lack of knowledge, skill, and time than agent. The objective for
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PROBLEM SESSIONS BEFORE MIDTERM EXAM_30-31.10.2013 & 06-07.11.2013 1. Suppose that due to more stringent environmental regulation it becomes more expensive for steel production firms to operate. Also, recent technological advances in plastics have reduced the demand for steel products. Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of steel. Can we say with certainty that the market price for steel will fall? Why? Solution: The
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$275,000 $485,000 First you have to calculate the Gross Profit: Gross Profit = = = Sales – Cost of Goods Sold $650,000 - $485,000 (calculated in Part A) $165,000 Now, you can calculate the net profit: Net Profit = = $165,000 - $90,000 (from problem) $75,000 QUESTION # 2: A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $140,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000
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Dollar Tree is the nation’s largest single price point retail with over 3300 stores across the United States. It has faced several issues that have led to organizational and leadership problems. 1. What are the chief elements of the strategy that “Dollar Tree” is pursuing? The chief elements important in this article are all related to the fact that the company was moving towards expanding the business and creating a competitive advantage. As the article says, the business grows so much that by
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pressure of water * Unreliable water temperature * Low quality shower causing breakdown In addition, products in the market did not have any real innovation to solve all of this problems. This can be viewed as an opportunity for manufacturers who can come up with innovation that answer to these problems. * Consumers were also uneducated regarding products and can barely understand the different value given by each type of showers. Brand-awareness is low and decision often came from
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