fixed and mobile phones‚ Telmex and Telcel’s market shares are big enough for them to hold monopolistic powers‚ allowing them to become “price-setters”. This allows both firms to produce profit-maximizing level of output (where the marginal cost curve intersects the marginal revenue curve). By doing so‚ they do not achieve allocative efficiency‚ the socially optimal allocation of resources (Qa in figure 1). Due to the price-setting powers these firms hold‚ both will be analyzed as purely monopolistic
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Latasha Thomas January 20‚ 2013 HSM 260 Jerome Anderson Exercise 10.1 Recompute fixed costs‚ variable costs‚ and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45‚000-meal contract with the City of Westchester? The variable cost of service is $3.93 during the fiscal year the WHDM should provide 1‚011 meals to reach their
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Fixed Costs‚ Variable costs‚ and Break Even Point Elizabeth Gaud HSM /260 August 21‚ 2011 Stephanie Koontz Fixed Costs‚ Variable costs‚ and Break Even Point Exercise 10.1 Recompute fixed costs‚ variable costs‚ and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45‚000-meal contract with the City of Westchester? Answer:
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120x - x2. The cost of advertising event for x days is C(x) thousand $‚ where C(x) = 2x2+300. a) Find profit function P(x) =R(x) – C(x) & sketch graph. b) How many days in advance should the event be announced in order to maximize profit. What is the max profit? c) What is the ratio revenue to cost Q(x) =R(x)C(x) at the optimal announcement time found in part(b). What respond when x-> 0. Interpret the result. 3/ A manufacturer can produce digital recorders at a cost of $50 apiece
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Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation
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COST ACCOUNTING Select the one best answer for each: 1. Which one of the following would not be classified as manufacturing overhead? a. Indirect labor b. Direct materials c. Insurance on factory building d. Indirect materials 2. Prime costs of a company are $3‚000‚000‚ manufacturing overhead is $1‚500‚000 and direct labor is $750‚000. What is the amount of direct materials? a. $1‚500‚000. b. $750‚000. c. $2‚250‚000.
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activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH)‚ material handling (MH)‚ and number of shipments (NS) as cost drivers. Data on the cost pools and respective driver volumes follow. Product Alpha Gamma Pool Cost Pool No. 1 (Driver: DLH) 200 1800 $420‚000 Pool No. 2 (Driver: MH) 15 10 $375‚000 Pool No. 3 (Driver: NS) 2‚000 18‚000 $20‚000 1. The overhead cost allocated to Alpha by using traditional costing procedures
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allocate service department costs to “production” or user departments‚ and ultimately to the products and services that they provide. For example‚ hospitals use sophisticated methods for allocating costs of service departments such as Housekeeping‚ Patient Admissions‚ and Medical Records to patient wards and outpatient services‚ and then to individual patients. Historically‚ these allocations were important to hospitals because Medicare reimbursement was based on actual costs. To the extent that the
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How to do cost-effectiveness calculations in a nutshell: Noncompeting choice Noncompeting choice cost effectiveness is when you have many possible options to choose from that are NOT mutually exclusive. Noncompeting choice cost effectiveness uses the average cost effectiveness. This means you simply divide the cost of the intervention by the benefit of the intervention. For example: Intervention QALY Gained (~DALY eliminated) Net Cost A 50 $1000 B 3 $300 C 40 $1200 The average
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1 or duplicated‚ or posted to a publicly accessible website‚ in whole or in part. Chapter 1 Introduction Body of Knowledge Problem Solving and Decision Making Quantitative Analysis and Decision Making Quantitative Analysis Models of Cost‚ Revenue‚ and Profit Quantitative Methods in Practice © 2013 Cengage Learning. All Rights Reserved. May not be scanned‚ copied Slide 2 or duplicated‚ or posted to a publicly accessible website‚ in whole or in part. Body of Knowledge The body
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