Nintendo, a leading manufacturer of video games is about to introduce four new games.The accompanying table summarizes price and cost data. Combined fixed costs equal$500,000.2/3Game-1Game-2Game-3Game-4Selling price$50$45$30$20Variable cost per unit$20$15$10$10a) Determine a joint total revenue function for sales of the video games.b) Determine a joint total cost function for development of the video games.c) Determine the profit function for sales of the video games.d) What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively ofthe four video games.

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Answered: a) Determine a joint total revenue…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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The process-control division expects to sell 1,250 process-control units this year. From the viewpoint of Sierra Inc. as a whole, should 1,250 Xcel-chips be transferred to the process-control division to replace circuit boards? Show your computations.
Blossom Company is considering two alternatives. Alternative A will have revenues of $145,100 and costs of $104,800. Alternative B will have revenues of $184,300 and costs of $121,900. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Alternative A $ 145100 Revenues Costs Net Income 104800 40300 Alternative B Vis better than Alternative A Alternative B Net Income Increase (Decrease) 184300 $ 39200 i 121900 62400 17100 22100
The CVP income statements of Shalom and Peace Company are available below. The two companies belong in the same manufacturing industry and coincidentally, both had the same operating income in 2022: Sales Variable costs Contribution margin Fixed costs Operating income Shalom Peace 500,000 500,000 300,000 180,000 200,000 320,000 120,000 240,000 80,000 80,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Format of units: 88,000 UNITS (in whole numbers, one space after the number of units) Words must be in capital letters. Format of degree of operating leverage: 88.88X (2 decimal places with X to indicate "times") 1 Which company has a higher degree of operating leverage? 2 What is the degree of operating leverage of your answer in number 1? Use the underlined company name in capital letters as your choice. Assume that the sales will increase by 15%: 3 Using your DOL, what is the percentage of increase in Peace Company's operating income? 4 Using…
Oriole Company is considering two alternatives. Alternative A will have revenues of $147,400 and costs of $103,400. Alternative B will have revenues of $188,200 and costs of $121,600. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues $ Costs Alternative A Net Income $ ▾ is better than +A Alternative B Net Income Increase (Decrease) +A +A
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The CVP income statements of Peace and Shalom Company are available below. The two companies belong in the same manufacturing industry and coincidentally, both had the same operating income in 2022: Sales Variable costs Contribution margin Fixed costs Operating income Peace Shalom 300,000 300,000 150,000 120,000 180,000 150,000 90,000 120,000 60,000 60,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Format of units: 88,000 UNITS (in whole numbers, one space after the number of units) Words must be in capital letters. Which company has to sell more units to earn profit? Use the company name only(underlined above) If the selling price of the two companies is P100 per unit, how many units shall your answer above sell to break- even?
Bollozos Afterlife Corporation's Division A manufactures and sells product Brand X, which is used in refrigeration systems. Per-unit variable manufacturing and selling costs amount to P20 and P5, respectively The Division can sell this item to external domestic customers for P36 or, alternatively, transfer the product to the company's Division B. Division B is currently purchasing a similar unit from Taiwan for P33. Assume use of the general transfer-pricing rule. •What is the most that the Division B would be willing to pay the Division A for one unit? • If Division A had excess capacity, what transfer price would the Division's management set? · If Division A had no excess capacity, what transfer price would the Divisions management set? If Division A had no excess capacity, what transfer price would the Divisions management set assuming that Division A was able to reduce the variable cost of internal transfers by P4 per unit
4. If a transfer price of $340 per unit is negotiated, how much would the income from operations of each division and total company income from operations increase? The Semiconductors Division's income from operations would increase by$fill in the blank 75932002afef041_1 The Navigational Systems Division's income from operations would increase by$fill in the blank 75932002afef041_2 Exoplex Industries Inc.'s total income from operations would increase by$fill in the blank 75932002afef041_3 5a. What is the range of possible negotiated transfer prices that would be acceptable for Exoplex Industries Inc.? Any transfer price than the Semiconductors Division’s variable expenses per unit but than the market price would be acceptable. 5b. Assuming that the managers of the two divisions cannot agree on a transfer price, what price would you suggest as the transfer price?$fill in the blank 75932002afef041_6

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