Consider the data in the table below. Farmer Smith rents 15 acres of wheatland and employs variable labor. Calculate the AC when output = 5. Calculate the MC when output increases from 4 to 5.
A manufacturer of computers claims its batteries last an average of 3.5 hours before needing recharging. For a sample of 10 batteries, the mean life was 3 hours and the standard deviation was 0.8. Can we conclude at the 0.01…
In March 2013, Dave, a calendar-year taxpayer, purchased new 7-year property for $1,000,000. The property was immediately placed into service (and is being used exclusively in Dave’s extremely profitable business). No other personal property will be purchased by Dave in…
Question 1. Part a) Assume the following facts about a firm: Annual cost to maintain lock box $1,500Cost to process each cheque $0.15Average amount of each cheque received $1,500Number of cheques received per year 4,000Interest rate on borrowed funds 8.0%…
Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her next four years of college. Assuming the annual…
Allcell Manufacturing is a division of Birch Communications, Inc. All cell produces cell phones and sells these phones to other communication companies, as well as to Birch. Recently, the vice president of marketing for Birch approached Allcell with a request…
Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours. It has provided the following information for the year 2014: Actual manufacturing overhead costs incurred$90,000Manufacturing overhead costs allocated to production$42,500Actual direct materials cost$220,000Actual direct labor cost$46,000Actual direct…
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 -$16,000 1 6,100 2 7,800 3 8,400 4 6,500 5 -5,100 The company uses a 10% interest rate on all of its projects. Calculate…
Negligence as Determined by the Marginal Hand Rule Consider a barge owner who is deciding whether to post an attendant on his barge to make sure that it remains properly moored to the pier. The following table gives the total…
Able Company expects to begin the coming year with 12,000 units of product X in the inventory of finished goods. It expects to sell 130,000 units of the product and end the year with 15,800 units in finished goods inventory.…
