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Financial Accounting vi
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- In Example 3, if the accountant earns a profit of 100 on each individual return and a profit of 175 on each business return, find the maximum profit. An accountant prepares tax returns for individuals and for small businesses. On average, each individual return requires 3 hours of her time and 1 hour of computer time. Each business return requires 4 hours of her time and 2 hours of computer time. Because of other business considerations, her time is limited to 240 hours, and the computer time is limited to 100 hours. If she earns a profit of 80 on each individual return and a profit of 150 on each business return, how many returns of each type should she prepare to maximize her profit?Inventories An electronics store manager stocks from 20 to 30 IBM-compatible computers and from 30 to 50 Apple computers. There is room in the store to stock up to 60 computers. The manager receives a commission of 50 on the sale of each IBM-compatible computer and 40 on the sale of each Apple computer. If the manager can sell all of the computers, how many should she stock to maximize her commissions? Find the maximum commission. Inventory IBM Apple Minimum 20 30 Maximum 30 50 Commission 50 40A manufacturer produces two models of television stands. The table at the left shows the times (in hours) required for assembling, staining, and packaging the two models. The total times available for assembling, staining, and packaging are 3750 hours, 8950 hours, and 2650 hours, respectively. The profits per unit are $30 for model I and $40 for model II. What is the optimal inventory level for each model? What is the optimal profit?
- Answer D and E only The answers to A,B, and C are given. A) Rx=4x B) The Profit Function,Px=Revenue Function,Rx-Cost Function,Cx Px=4x-300+0.1x+0.003x2Px=4x-300-0.1x-0.003x2Px=-0.003x2+3.9x-300 C)P'x=-0.006x+3.9(B) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly profit? What is the maximum weekly profit? phones each week at a price of $ The company should produce (Round to the nearest cent as needed.)Which of the following statements is FALSE? A An explicit cost is a nonmonetary opportunity cost. (B An implicit cost is nonmonetary. Implicit costs are specific to the individual firm. D Implicit costs are opportunity costs. (E Explicit costs are easy to measure.
- E. Consider the given total cost of expenses and the revenue. If x is the quantity of products that must be sold, find the value of x at the break- even point. Total Cost of Revenue Value of x Expenses 1. x+250 2x 2. 2x + 300 4x 3. 3.5x +700 6x 4. 4.25x + 1,700 5x + 200 5. 5x + 250.50 10xAnd maximum total revenueI. A producer of felt-tip pens has received a forecast of demand of at least 50,000 pens for the coming month from its marketing department. Fixed costs are $20,000 per month, and variable costs are 25 cents per pen. a. Find the break-even quantity the company must produce if pens sell for $1.50 each. b. Find the quantity to be produced to realize a profit of $20,000. 70
