Calculate each of the following for Firm B:Profit maximizing price = ________________ Consumer surplus =_____________ DWL = ________________ Profit/loss =____________ Firm AFirm BFirm CPrice where output is equal to zero (R)2000150060Profit maximising price (R)1000?60Profit maximising output level (units)30502500MC at profit maximising output level (R)?27560ATC at profit maximising output level (R)1300?36AVC at profit maximising output level (R)900300?Minimum ATC (R)120032030Minimum AVC (R)8002803Price at allocative efficient output level (R)160580?Allocative efficient level of output (units)1502002500Lerner index0.8?Total Fixed Cost (R)200075000Total Variable Cost at profit maximising output level (R)2700015000?Mark-up?4

Answered: Image /qna-images/answer/a1cca0f6-8a41-4afb-a613-0868f360fb91.jpg

Answered: Firm A Firm B Firm C Price where output…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. A company has a production capacity of 500 units per month per month and its fixed costs are P250,000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break even points. What are the old and the new profit at 100 percent capacity?
COMPLETE SOLUTIONS pls Suppose we know that p-1,150-3D/10, where p = price in dollars and D = annual demand. The total cost approximated by $1,000+2D^2 a .Determine the value of D that maximizes profit. b. Show that in part(a) profit has been maximized rather than minimized c. Find the maximum profit
CellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $30, direct labor of $7, packaging costs of $7 and variable overheads of $2. CellPeak has fixed overheads of $252513 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?
Cebu Tire and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At present, it is operating at 62% capacity. The firm’s annual income is P 416,000. Annual fixed costs are P 192,000 and the variable costs are equal to P 0.356 per unit of product. (a) What is the firm annual profit or loss? (b) At what volume of sales does the firm break-even?
A company in Denver started a new production line to manufacture a new part. The table below showed the costs. If the parts will be sold at the selling price = $15.00/unit, what annual production quantity need to be manufactured to make it breakeven? Material and Parts Cost $3.00/unit, Labor Costs $4.00/unit, Overhead Cost $2,500,000, Annual Production Quantity ? units
Given problem: The ore of a gold mine in the Mountain Province contains, on average, 0.5 grams of gold per ton. One method of processing costs $1,650 per ton and recovers 93% of the gold, while another method costs only $1,500 per ton and recovers 81% of the gold. If gold can be sold at $8,500 per gram, which method is better, and by how much? Consider the income and cost per ton of ore. Solve for the net receipt of each method. *Round off answer in 2 decimal places. Thank you
Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGEQUANTITYSOLD (UNITS/MONTH) CURRENTPRICE TOTALREVENUE VARIABLECOST PERUNIT CONTRIBUTIONMARGIN PERUNIT CONTRIBUTIONMARGIN* A B C Total 15,000 5,000 10,000 $30 35 45 $450,000 175,000 450,000 $1,075,000 $15.00 18.00 20.00 $15 17 25 $225,000 85,000 250,000 $560,000 *Contribution to fixed costs and profits.The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model C to be approximately 0.2. Variable costs…
A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even?
A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit. a) What is the current loss or profit? b) What is the breakeven point?.
a. ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level.b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. • Total revenue $ 500,000• Wages and salaries $ 40,0000• Forgone salary $ 80,000• Interest paid $ 10,000• Forgone rent $ 10,000• Raw materials $ 50,000• Other payments $ 20,000• Forgone interest $ 7,000
a. ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue $ 500,000 Wages and salaries $ 40,0000 Forgone salary $ 80,000 Interest paid $ 10,000 Forgone rent $ 10,000 Raw materials $ 50,000 Other payments $ 20,000 Forgone interest $7000
For a firm total revenue is 120000, cost of raw materials is 40000, wages of labor 18000, other expenses are 5000, Total implicit cost is 33000.What is accounting profit. Select one: O a. 68000 Ob. 24000 c. 57000 Od. 87000

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