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2 years ago

Calculate the average stock in a department with annual sales of $1,840,000 and an annual stock turnover of 5.4.

Business

1 answer:

Ksivusya [100]2 years ago

7 0

Answer:

$366,667

Explanation:

Average stock can be regarded as stock at the beginning of the period as well as stock towards ending of it

Given:

annual sales =$1,840,000

annual stock turnover =5.4.

average stock can be calculated as

average stock =annual sales/

annual stock turnover

= 1,840,000/ 4.5

= $366,667

Hence the average stock in a department is $366,667

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3 years ago

What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round al

Salsk061 [2.6K]

Complete question:

A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: P1 = 15 - Q1MR1 = 15 - 2Q1P2 = 25 - 2Q2MR2 = 25 - 4Q2. The monopolist’s total cost is C = 5 + 3(Q1 + Q2 ).

What are price, output, profits, marginal revenues, and dead-weight loss

(i) if the monopolist can price discriminate?

(ii) if the law prohibits charging different prices in the two regions?

Solution:

Through price control, the monopolist selects quantity in each sector in such a manner that total income of each business is equivalent to total expense. The marginal cost is equivalent to three (the slope of the overall cost curve).

In the first market

15 - 2Q1 = 3, or Q1 = 6.

In the second market

25 - 4Q2 = 3, or Q2 = 5.5

Substituting into the respective demand equations, we find the following prices for the two markets : P1 = 15 - 6 = $9 and P2 = 25 - 2(5.5) = $14.

Noting that the total quantity produced is 11.5, then

π = ((6)(9) + (5.5)(14)) - (5 + (3)(11.5)) = $91.5.

The monopoly dead-weight loss in general is equal to

DWL = (0.5)(QC - QM)(PM - PC ).

Here, DWL1 = (0.5)(12 - 6)(9 - 3) = $18 and

DWL2 = (0.5)(11 - 5.5)(14 - 3) = $30.25.

Therefore, the total dead-weight loss is $48.25.

Without pricing disparity, the monopoly holder would demand a single price for the whole sector. To optimize income, we find that the total revenue is equivalent to the total expense. Using demand calculations, we note that the complete market curve is kinked to Q = 5:

P=25-2Q, if Q≤518.33-0.67Q, if Q5 .

This implies marginal revenue equations of MR=25-4Q, if Q≤518.33-1.33Q, if Q5

With marginal cost equal to 3, MR = 18.33 - 1.33Q is relevant here because the marginal revenue curve “kinks” when P = $15.

To determine the profit-maximising quantity, equate marginal revenue and marginal cost: 18.33 - 1.33Q = 3, or Q = 11.5.

Substituting the profit-maximizing quantity into the demand equation to determine price :P = 18.33 - (0.67)(11.5) = $10.6.

With this price, Q1 = 4.3 and Q2 = 7.2.

(Note that at these quantities MR1 = 6.3 and MR2 = -3.7).

Profit is(11.5)(10.6) - (5 + (3)(11.5)) = $83.2.

Dead-weight loss in the first market is DWL1 = (0.5)(10.6-3)(12-4.3) = $29.26.

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3 years ago

On July 1, 2019, Pharoah Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $16,000 salva

Eva8 [605]

Answer:

Pharoah Company

Revised Annual Depreciation on Dec. 31, 2022:

= Depreciable amount divided by 10 years

= $55,000/10 = $5,500

Explanation:

a) Data:

July 1, 2019: Equipment Purchase $80,000

Estimated useful life = 8 years

Salvage value = $16,000

b) Computations:

Depreciable amount = $64,000 ($80,000 - 16,000)

Annual Depreciation Expense = $8,000 ($64,000/8)

Six months Depreciation Expense = $4,000 ($8,000/2)

c) Accumulated Depreciation from July 1, 2019 to Jan. 1, 2022:

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Jan. 1, 2022, Book Value = Cost minus Accumulated Depreciation ( $80,000 - $20,000) = $60,000

Re-estimated salvage = $5,000

Depreciable amount =$55,000

Remaining useful life = 10 years

Annual Depreciation Expense = $5,500 ($55,000/10)

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3 years ago

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If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.

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1 year ago

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3 years ago