What is correct here? 26 Which of the following is never negative? 27 If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm? 28 In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems?
What is correct here? 26 Which of the following is never negative? 27 If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm? 28 In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems?
Profit Maximization is the process that a firm uses to establish where the best output and price levels are, in order to maximize its return. There are two primary methods that can be used to establish profit maximization. One method is the Marginal Revenue minus the Marginal Cost (MR-MC) method. When utilizing this method economists assume that profit would be at its highest when MR and MC are equal, which denotes that for every item made MP=MR-MC. When / if MR is higher than MC then MP would result in a profit for Company A.
ECON 1312 Homework Assignment # 2 Chapter 4 1. Why do we need a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price? Answer: To measure or to compare the demand of the two unrelated goods or services. 2. Define the price elasticity of demand and show how it is calculated.
In the first case, it would appear the demand is inelastic and in the second case it would appear to be elastic. Second, the use of percentages allows comparisons to be made across products. You can compare the percentage change in quantity demanded to a percentage change in price across all products for which you have data on changes in price and quantity demanded. [text: E pp. 114-115; MI pp.
Determine the sales potential for P&G’s Sesame Street Pampers in this market in units and in dollars for 2011. 3. Determine the sales forecast (units and dollars) for Sesame Street Pampers for 2011. 4. Estimate how much profit P&G can expect to generate in 2011 from Sesame Street Pampers 5.
Cupcakes 45 26 27 23 22 48 29 20 14 18 47 26 27 24 22 Determine the Naïve forecast for day 16. Blueberry Muffins 33 Cinnamon buns 33 Day 16 b. Cupcakes 22 What does the use of sales data rather than demand data imply? Sales data does not take into account the demand which may have been greater than the actual sales. If the demand was actually greater than sales and the bakery could have met that demand, using sales would cause them to under forecast their full business potential. 1 #2: National Scan, Inc., sells radio frequency inventory tags.
- CALIFORNIA PIZZA KITCHEN Teaching Note Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the case provides an engaging context to discuss the “pizza graphs” that are commonly used in corporate finance curriculum to illustrate the wealth effects of capital structure decisions. The case serves to motivate the following teaching objectives: • Introduce the Modigliani-Miller intuition of capital structure irrelevance; • Establish how the cost of equity is affected by capital structure decisions by defining financial risk and introducing the levered-beta capital asset pricing model (CAPM) equation; • Discuss interest tax deductibility and the valuation tax shields; • Explore the importance of debt capacity in a growing business.
The independent variables used to analyze coefficient of determination here were the average income of food service manager and the average price of pizza in a time series regression analysis. Based on the data collect per the spreadsheet attached, the percent change of the sales is explained by R square percent of 95% change in price of pizza and income. There is positive coefficient between the independent variables and sales. This means as sales increase so does the average food service manager salaries increase by 0.0003 coefficient however price goes down by the 0.25 value. Per the data food service manager salaries are down by 8.9% from last year this time therefore to open a new pizza operation would be a good capitalize managerial decision at this time other cost factors remain the same.
What are the profit maximizing levels of price and output for the two freight categories? Solution: - Computation of profit maximizing levels of price and output for the two freight categories Marginal Cost for Market 1(Retail outlets) = MC1=d (TC)/dQ1=4 TR1=100Q1-2Q1^2 Marginal Revenue for Market 1=MR1=d (TR1)/dQ1=60-4Q1 For Profit