Answer:
$60 to $70; 20 units to 25 units
Explanation:
The production point for the monopolist is where the marginal revenue is equal to the marginal cost,
For first demand curve,
P = 100 - 2Q
MR = 100 - 4Q, the MR curve is double sloped than the demand curve
MC = 20
Now, Equating Marginal revenue with marginal cost,
100 - 4Q = 20
4Q = 80
Q = 20
P = 100 - (2 × 20)
= 60
For second demand curve,
P = 120 - 2Q
MR = 120 - 4Q
MC = 20
Now, Equating Marginal revenue with marginal cost,
120 - 4Q = 20
4Q = 100
Q = 25
P = 120 - (2 × 25)
= 70
So, the quantity increases from 20 units to 25 units and the price increases from $60 to $70.
Answer:
Budgeted sales ($)= $752,500
Explanation:
Giving the following information:
Manhattan expects to sell 2,400 cookware sets for $200 each in April and 3,500 cookware sets for $215 each in May.
To calculate the budgeted sales, we need to use the following formula:
Budgeted sales ($)= number of units sold*selling price per unit
Budgeted sales ($)= 3,500*215= $752,500
Answer:
Journal Entry
Dr. Contingent Consideration Liability $500,000
Cr. Goodwill $500,000
Explanation:
It is assumed that the decline in the fair value is the correction of the acquisition entry. It means due to this event the consideration liability and goodwill are overstated we need to rectify the balances.
Hence,
The contingent consideration liability will be debited to reduce the liability and goodwill will also be decreased by crediting the goodwill account.
Answer:
Total product cost= $181,000
Explanation:
<u>The product cost is the sum of the direct material, direct labor, and manufacturing overhead:</u>
Direct materials $ 70,000
Direct labor $ 37,000
Variable manufacturing overhead $ 12,000
Fixed manufacturing overhead $ 25,000
Total manufacturing overhead $ 37,000
Total product cost= $181,000