Problem #6, p. 221 in text. (You do not need to “derive” the Cournot equilibrium. Just solve for the values using the appropriate formulas.) Market demand: P = 400 – 2Q Unit cost production = 40 a. Firm’s quantity in equilibrium is : q1 = (a-c)/3b = (400-40)/(3*2)= 60 unit = q2 Firm’s revenue: P= 400 – 2 * (2*60) = $160 Firm’s profit = (60*160) – (60*40) = $7200 b. Monopoly output: MR=400-4q MC=40 MR=MC 400 – 4q = 40 then q=90 unit The reason that producing on half the monopoly output (90*1.5 = 135) a Nash equilibrium outcome is that it will exceed the market demand of Nash equilibrium ($160).
Inventory turnover 56,534,254 / 8,517,203 = 6.6 * Profitability ratios 5. Asset turnover $56,534,254 / 34,825,498 = 1.6 times 6. Profit margin $2,430,872 / 56,534,254 = 4.3 7. Return on assets $2,430,872 / 34,825,498 = 6.9 8. Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9.
Formula: 2009 figures – 2008 figures = cash difference (cash diff) Cash diff / 2008 figures = % difference (%diff) net patient 2008 - 418509 2009- 459900 diff cash- 41391 %diff: (41391 /418509) * 100%= 0.098 9.9% (.098901....) other revenue 2008 - 2805 2009- 3082 diff cash- 277 %diff (277/2805) * 100 = 9.9% (0.987522...) total revenues 2008- 421,314 2009 - 462,982 diff cash-41668 % diff 41688/421314 * 100% 9.9%
Huffman TruckingBalance Sheet | (Unaudited) | | | December 31st | | 2011 | 2010 | | (In Thousands) | | Assets | Current Assets | | Cash & Cash Equivalents | $89,664 | $58,003 | Accounts Receivable | 51,869 | 81,557 | Prepaid Expenses & Supplies | 6,267 | 5,529 | Total Current Assets | $147,800 | $145,089 | | Carrier Operating Property (at cost) | $85,306 | $81,461 | Less: Allowance for Depreciation | (69,536) | (67,119) | Net Carrier Operating Property | $15,770 | $14,342 | | Assets of Discontinued Operations | 7,516 | 8,739 | Goodwill (net) | 49,852 | 49,852 | Other Assets | 46,327 | 37,306 | Total Assets | $267,265 | $255,328 | | | Liabilities and Shareholders' Equity |
5. Include in inventory. Under invoice terms, title passed when goods were shipped. E 8-14 (A) (a) (1) LIFO 600 @ $6.00 = $3,600 100 @ $6.08 = 608 $4,208 (2) Average cost Total cost $33,655* Total units = 5,300 = $6.35 average cost per unit 700 @ $6.35 = $4,445 *Units Price Total Cost 600 @ $6.00 = $ 3,600 1,500 @ $6.08 = 9,120 800 @ $6.40 = 5,120 1,200 @ $6.50 = 7,800 700 @ $6.60 = 4,620 500 @ $6.79 = 3,395 5,300 $33,655 E 8-16 (a) (1) 2,100 units available for sale – 1,400 units sold = 700 units in the ending inventory. 500 @ $4.58 = $2,290 200 @ 4.60 = 920 700 $3,210 Ending inventory at FIFO cost.
If you choose 40 random employees from the corporation, the standard error would equal 6/Square root of 40 = .95 days. The 12 days in this department corresponds to (12-8.2)/.95 = 4 standard errors above the corporation average of 8.2. This is much higher than two or three standard errors, and it appears to be beyond chance variation. Chapter 9 Exercise 3 The p- value tells you how likely it would be to get results at least as extreme as this if there was no difference in the taste and only chance variation was operating. In this problem, p-value of 0.02 means that, if there is no difference in taste, then there is only 2% chance that 70% or more people would declare one drink better than the
28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | Net sales | $ 170,910 | $ 156,508 | $ 108,249 | Cost of sales | 106,606 | 87,846 | 64,431 | Gross margin | 64,304 | 68,662 | 43,818 | Operating expenses: | | | | Research and development | 4,475 | 3,381 | 2,429 | Selling, general and administrative | 10,830 | 10,040 | 7,599 | Total operating expenses | 15,305 | 13,421 | 10,028 | Operating income | 48,999 | 55,241 | 33,790 | Other income/(expense), net | 1,156 | 522 | 415 | Income before provision for income taxes | 50,155 | 55,763 | 34,205 | Provision for income taxes | 13,118 | 14,030 | 8,283 | Net income | $ 37,037 | $ 41,733 | $ 25,922 | Earnings per share: | | | | Basic | $ 40.03 | $ 44.64 | $ 28.05 | Diluted | $ 39.75 | $ 44.15 | $ 27.68 | Shares used in computing earnings per share: | | | | Basic | 925,331 | 934,818 | 924,258 | Diluted | 931,662 | 945,355 | 936,645
X2 = Number of EXCELLENT model produced during 8 hour shift. Max 42X1 + 87X2 ST X1 + X2 ≤ 480 3X1 + 6X2 ≤ 480 4X1 + 2X2 ≤ 480 X1 ≥ X2 3X1 + 6X2 ≤ 4X1 + 2X2 + 30 3X1 + 6X2 ≤ 4X1 + 2X2 – 30 X1, X2 ≥ 0 If the management limits the difference between Line 1 and Line 2 up to 30 minutes, it is recommended to produce about 96.667 (or 97) units of SUPER and 31.667 (or 32) units of EXCELLENT in order to maximize the total profit. Even it gives $65 reduction on initial profit, there will be more efficient balance on workload where time for Line 1 is fully utilized and on Line 2 there is only 30 minutes of unused time. (See attached print-out, table № 6) Question 6 Let X1 = Number of SUPER model produced during 8 hour shift. X2 = Number of EXCELLENT model produced during 8 hour shift.
Just as physical products are open to innovation and change, so are new services. An example of this type of innovation is Frederick Smith who is the American entrepreneur responsible for the multi-million dollar international company, Federal Express. He created a new and better way of moving packages between people. New services, like physical products can also have positive movement due to branding. It is beneficial for entrepreneurs to think more along the lines of all product and service aspects instead of in silos and just thinking about producing “products” alone or “services.” That concept is imperative for entrepreneurs to understand as customer service can be added as an additional component as well to a physical product.
793,408 Notes Payable 2,030,000 Inventory 1,161,574 Total CL $ 3,025,680 Total CA $ 2,448,902 Long-term debt $ 5,320,000 Shareholder Equity Common stock $ 350,000 Fixed assets Retained earnings 10,899,117 Net PP&E $ 18,057,088 Total Equity $ 11,249,117 Total Assets $ 20,505,990 Total L&E $ 19,594,787 EFN = Change in assets- change in liabilities- change in retained earnings Change in Assets= 20,505,990- 18,308,920= 2,197,070 Change in Liabilities= 995,680- 889,000= 106, 680 Change in retained earnings: EBIT = (30,499,420- 22,224,580 – 3,867,500) * 1.12 – 1,366,680 = 3,569,541 3,569,541- 478,240= 3,091,301 (EBIT- Interest) 3,091,301 * (1-.40) * .635 = 1,179,270 EFN= 2,197,070 – 106,680 – 1,179,270= 911,120 Given this number, an increase in sales can only occur if we raise the amount of $911,120 in financing for S&S Air, otherwise sales will not increase at this growth