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- You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 2Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 18Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output? unitsb. Given these costs and market demand, how much output would a competitive industry produce? unitsc. Given these costs and market demand, how much output would a monopolist produce? unitsd. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.Instructions: For correct answers place a check mark. check all that apply Nonrival consumptionunanswered Pollution taxesunanswered Pollution permitsunansweredQ1) One of the industrial investors needed an analysis that would lead him to a break-even level between the following inputs and outputs: Fixed Cost = 180079 $ , Variable Costs =475, Revenue of saling prices per unit (204 $ ) Y of Products 890 ‘599‘ 917‘ eu‘ 955[ 975‘ sas[ 1,u7‘ 1,159' 1,193‘ 1,209‘ 1,255‘ Require A) Find all lines of anlysis . B) How the produaction reach to B.E.P. C) Based on the available information, show the level of variation from line of production to other annually.A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. (A) Which alternative has the lowest break-even quantity? (B) Which alternative will produce the highest profits for an annual output of 10,000 units? (C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000?
- There are three equally likely states of nature (High, Medium, and Low demand). If the large factory will post profits of $50,000, $25,000, and - $10,000 under these states of nature, respectively, what is the EMV of the factory? a. $28,333.33 b. $50,000 c. $21,666.67 d. $25,000A firm uses simple linear regression to forecast the costs for its main product line. If fixed costs are equal to $235,000 and variable costs are $10 per unit, how many units does it need to sell at $15 per unit to make a $300,000 profit? 21,400 47,000 60,000 107,000A company wants to price its product by using target ROR method. If the investment isestimated to be 300,000, target ROR = 15 %, expected demand is 43,125 units. What is the targeted price per unit?
- A firm presently has total sales of P100,000. If its sales rise, its A. net income based on variable costing will go up more than its net income based on absorption costing. B. net income based on absorption costing will go up more than its net income based on variable costing. C. fixed costs will also rise. D. per unit variable costs will riseA firm will produce either product A or B. The total costs (TC) for both products can be estimated by the equations Product A: TC = $300,000 + ($23 x Sales volume) Product B: TC = $100,000 + ($29 x Sales volume) The firm believes there is a 20% chance for the sales volume of each product to equal 10,000 units and an 80% chance they will both equal 20,000 units. The selling price of product A is $42, and the selling price of product B is $40. The expected profit from producing product B equals a. $680,000 b. $390,000 c. $98,000 d. $120,000. If a firm's margin of safety is 35% on sales of P200,000, then its margin of safety on sales of P300,000 will be (assume fixed costs, the variable cost per unit, and the sales price per unit do not change): a.P105,000 b.P170,000 c.P100,000 d.P 35,000
- A firm uses simple linear regression to forecast the costs for its main product line. If fixed costs are equal to $235,000 and variable costs are $10 per unit, how many units does it need to sell at $15 per unit to make a $300,000 profit?A firm presently has total sales of P100,000. If its sales rise, its fixed costs will also rise. net income based on absorption costing will go up more than its net income based on variable costing. per unit variable costs will rise. net income based on variable costing will go up more than its net income based on absorption costing.a. Given the following graphs, calculate the total fixed costs, variable costs per unit, andsales price for Firm A. Firm B’s fixed costs are $120,000, its variable costs per unit are$4, and its sales price is $8 per unit.b. Which firm has the higher operating leverage at any given level of sales? Explain.c. At what sales level, in units, do both firms earn the same operating profit?