In this problem, p is the price per unit in dollars and q is the number of units.Suppose the weekly demand for a product is given by p + 2g = 840 and the weekly supply before taxation is given by p = 0.02g2 + 0.55g + 7.4. Find the tax per item that producesmaximum tax revenue. (Round your answer to the nearest cent.)$ 483.17Find the tax revenue. (Round your answer to the nearest whole dollar.)$ 40,089

Answered: In this problem, p is the price per…

Business

Accounting

In this problem, p is the price per unit in dollars and q is the number of units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Requlred Information [The following Information applies to the questions displayed below.] Trey…

A: Weighted Average - Under the Weighted Average Method, the cost is considered to be average at the…

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Cost, revenue, and profit are in dollars and x is the number of units. If the total profit function…

A: Hello. Since your question has multiple parts, and the first part has incomplete information we will…

Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost

A: The cost function depicts the costs that will be incurred at various levels of activity Cost…

Q: In Cost-Volume-Profit analysis, it is an important assumption that all units produced are sold; in…

A: Cost-Volume-Profit analysis is performed to analyze the behavior of costs and revenues and it shows…

Q: The break-even point is where a.Revenues Costs. c.Revenues = Costs. d.Revenues = Fixed Costs.

A: Formula: Break even units = Fixed cost / Unit contribution margin.

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…

A: Variable cost ratio = Variable cost per unit / Selling price per unit

Q: Contribution margin is selling price plus unit cost. True or false

A: Contribution Margin is the income before deduction of any fixed cost. Contribution margin = Selling…

Q: what are the differences between the FIFO, LIFO, and the average cost?

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Which of the following statements is (are) true? (A) A price standard is the price that should be…

A: Standard costing refers to the method of costing used for the computation of expenses in the process…

Q: How is conversion cost per equivalent unit calculated

A: Equivalent production refers to total number of units that are fully completed during the period and…

Q: \table[[Cuantivy, \table[[Totil], [Cost]], \table [[Fined], [Cost]], \table[[Variable], [Cost]], \…

A: Variable in the question:Fixed cost=$50

Q: Assume markup percentage equals desired profit divided by total costs. What is the correct…

A: The mark-up amount of the profit is the amount which has been added on the cost so that the profit…

Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…

A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: On a CVP graph, dollars are represented on the horizontal (X) axis and unit volume is represented on…

A: On a CVP (Cost-Volume-Profit) graph, unit volume is typically represented on the horizontal (X)…

Q: Which of the following are assumptions associated with the cost equation? Check all that apply. The…

A: Cost equation means a line or formula which shows both types of cost like fixed costs and variable…

Q: 2)The contribution-margin ratio is: A) fixed cost per unit divided by variable cost per unit. B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is the varable cost for A? $0.10

A: Variable cost is the cost that changes with the change in production levels. It is directly…

Q: nswer the blank areas including total expenses, income from operations, what is the expected margin…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Whirly has the following information for 2015. They sell Flying Carpets. Sales Contribution Margin…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…

A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…

Q: VARIABLE COST PER UNIT What is the formula or method for finding the variablel cost per unit?

A: Variable cost is varies with number of units produced. Variable cost per unit is constant and total…

Q: if the number of units decreases, fixed cost per unit decreases

A: This question is considered as true or false. Fixed Cost: It is a cost which is constant in the…

Q: If sales are measured and dollars the unit on the standard deviation of sales is dollars true or…

A: The degree of variance or dispersion in a group of values is measured by the standard deviation.…

Q: Draw up a marginal statement that calculates the contribution per uni

A: Marginal costing seems to be a costing method whereby all variable expenses are included in the…

Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: The ratio of contribution margin in dollars to the selling price is the: Select one: Oprofit margin.…

A: We know that, Contribution is sales - variable cost

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

Q: s it always higher in cost of goods sold in Weighted average compared to FIFO?

A: Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis. In LIFO , cost of…

Q: CM ratio = 1 ______ the Variable expense ratio. minus plus divided by multiplied by

A: Contribution margin ratio is the ratio between contribution margin and sales revenue. It is…

Q: Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per…

A: Intercept is the total fixed cost and slope of cost function is the variable cost per unit. And the…

Q: Write the formula of the Price to Book Value Ratio and explain how a result of 2 should be…

A: The ratio analysis is a financial technique to evaluate a business entity's profitability,…

Q: The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Variable…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: What is the unit volume increase ? What is the x contribution margin per unit ? what is the Increase…

A: Contribution Margin:Contribution margin defined as selling price minus variable cost, is a measure…

Q: What is the margin of safety in dollars? What is the margin of safety percentage?

A: Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…

Question

100%

In this problem, p is the price per unit in dollars and q is the number of units.
Suppose the weekly demand for a product is given by p + 2g = 840 and the weekly supply before taxation is given by p = 0.02g2 + 0.55g + 7.4. Find the tax per item that produces
maximum tax revenue. (Round your answer to the nearest cent.)
$ 483.17
Find the tax revenue. (Round your answer to the nearest whole dollar.)
$ 40,089

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The “plus” in cost-plus pricing is often referred to as Markup. Extra profit. Gross profit. Margin of Safety.
Please explain how you get the amount, quantity and unit price.
In what sense is the WACC an average cost? A marginal cost?
If selling price is $2.08 and cost is $1.60, what is the price/cost ratio?
Which of the following equations is correct for determining the required sales in units to generate a targeted amount of pre-tax income (πB) under the equation method (where Q = sales in units, F = total fixed costs, πB = pre-tax profit, v = variable cost per unit, and p = selling price per unit)?
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue
Consider the following two statements concerning cost-volume-profit analysis. (1) The contribution per unit is the difference between the sales price per unit and the fixed costs per unit. (2) The marginal cost per unit will usually equal the variable cost per unit. Which one of the following combinations ( true/false) relating to the above statements is correct?
Solve the quantitative analysis problem from the picture below: Formulas: BEP : Fixed cost / (selling price per unit)-(variable cost per unit) : f / s - v profit : sX - f - vX (selling price per unit)(number of units sold) - [fixed cost + ( variable costs per unit)(number of units sold)]
Crex Co was set up by Cynthia Rex who created her own brand of chalk paint 20 years ago. Using her background in fine art, she developed this specialist chalk paint to be used in the restoration of furniture and to decorate accessories. The chalk paints are exclusively available through Crex Co's network of over 800 independent stockists who are located in over 30 countries around the world. The manufacturing process begins with the three chemicals required for the paint being measured on electronic scales. A worker then takes the chemicals and places them into a machine for mixing. Once mixed the worker removes the mixture from the machine and transfers it to tin containers. The standard material costs per litre of chalk paint are as follows: Litres required $ per litre 0.80 1.20 0.15 1.40 0.10 0.80 1.05 Material Latex paint Plaster of Paris Calcium carbonate At the end of the last period, actual output of the chalk paint was 3,325 litres and actual data relating to this production…
Cost of goods sold divided by variable cost equals units. O True False
Identify two advantages of dollar-value LIFO compared with unit LIFO.
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit