Determine the economic life of equipment for which the marginal costs are given in table below. Use an interest rate of 12%. Year Marginal Cost, $ 1 2 3 4 5 6 10,000 9,200 8,500 10,500 11,200 12,000
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- The graph shown below is that of Do Drop In, a shop in the dry-cleaning industry. Cost and revenues (in dollars) 20 18 16 14 12 10 60 MR 120 180 240 MC D Quantity per period AC 300 360 420Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A3 Guen Producing bole s Calautante the 024 Cost function or afirm "Zhat fC 40142 IS The Predugi) Lotals cCet 0t wits 72 units Determne he 7
- The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many units must be sold to realize profite of brirr 4000?3 Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from product A is expected to decline at 10% per year. Revenue will be $5M for this year. Alternatively, based on the projection from the marketing department, you may reduce the sales volume decline from 10% to 5% if the price is kept unchanged. The product will be discontinued at the end of year 5 for both scenarios. If the firm's TVOM is 10%, Determine the revenue cash flow streams for both alternatives. What is the Excel financial function to compute PW of the revenue streamsFind the Value Of the mode from He tollowing data class O-10 10-20 20-30 30-40 40-50 50- 60 60-70 70-80 809090-100 Frequence 8. 14 16 12 20 22 28 14 10 17 21
- Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGEQUANTITYSOLD (UNITS/MONTH) CURRENTPRICE TOTALREVENUE VARIABLECOST PERUNIT CONTRIBUTIONMARGIN PERUNIT CONTRIBUTIONMARGIN* A B C Total 15,000 5,000 10,000 $30 35 45 $450,000 175,000 450,000 $1,075,000 $15.00 18.00 20.00 $15 17 25 $225,000 85,000 250,000 $560,000 *Contribution to fixed costs and profits.The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model C to be approximately 0.2. Variable costs…Use the values in the table below to answer the following questions. Q TC ATC 1 35.91 9 101.1 10 -(C)- 33 1070 34 -(D)- 35.91 -(A)- -(B)- 35320 -(E)- MC 16.88 107.6 127.4 1102 1167 Cell (A) stands for the total cost of 9 units. Its value should be A. 323.52 B. 909.8 C. 151.65 O D. 252.75Determine the minimum cost life (in years) of an equipment for which the marginal costs are given in table below. Use an interest rate of 10%. Year 1 2 3 4 5 6 Marginal 18,000 16,000 19,000 20,000 22,000 24,000 Cost , $ Answer: The minimum cost life of an equipment is year(s).
- What are two guidelines the manager should keeo in mind with measuring the maginal cost correctly?Lachlan has a Jacaranda growing in his yard. One of the tree limbs is growing over into Dan's property. Dan does not like this and wants Lachlan to chop down the tree. Their respective benefits are shown below: Gains to Lachlan (S) Gains to Dan ($) Total ($) Keeping Tree 1000 100 1100 Chopping Down Tree 500 839 What is the amount that Dan would have to pay Lachlan so that each received half of the total extra gains from chopping down the tree? Answer to the nearest whole number in dollars (with no decimal places, $ sign, spaces or commas).Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Month and Cleaned Costs April 240 S6,800 May 305 7,680 June 325 8,310 July 275 7,200 August 220 6,550 September 200 5,760 Оctober 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 3,955 v + $ 13.4 v X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 9,181 x + $ 13.4 x x Adjust the equation developed in…