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Robinson Plastics makes clear plastic products with injection molding techniques. Their latest invention is a plastic cup with a sharp blade mounted inside to cut prescription pills into small pieces. The cup is Estimating Demand 42 placed over the pill, and as the cup is pressed down, the pill is split into pieces, and contained inside the cup. Because the cup is above the pill, persons can see how the pills are cut, and keep the pieces of the pill contained. The presumed market is pharmacies, which would then sell to customers who want to reduce dosage size. A survey of local drug manufacturers and retailers suggests that the market demand for the next year can be characterized by: Q = 2,000,000 - 100,000P + 5A where Q = unit sales, P = price in dollars, and A = advertising expenditure in dollars in trade journals and publications. Robinson is considering a price of either $1 or $2, and an advertising budget of $10,000. Robinson has estimated production cost at $.75 a unit. a. Compute the quantity sold and elasticity at a price of $1, and also at a $2 price, assuming the given advertising budget. b. What is the advertising elasticity at a price of $2? Give an interpretation of the advertising coefficient.
Determine the amounts of the components of pension expense that should be recognized by the company in 2012. Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2012.
The text argues that individual behavior was not at the core of Enron’s problems. What were the problems with this corporation from an organizational architecture point of view?
This is the remaining balance of a twelve-month advertising campaign purchased on August 31 in the current year. Assuming the cost is spread equally over each month how much did this advertising campaign cost in total?
What risk calculation technique is illustrated by your example? Would you have employed a different risk assessment technique than used in your example, and why?
Trepid then prepared a flexible budget at 38,000 labor hours. How much is total overhead costs at this level of activity?
Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012. Ignoring income taxes, by explain how much will working capital at December 31, 2012 be overstated or understate..
What are these recommendations? Explain how would an auditor likely view a company’s IT environment if the organization had implemented the above recommendations?
Assume that the company continues to use direct labor-hours as the bas for applying overhead cost to products - Evaluate the unit product cost of each product
George and William Phelps are considering a 6 year project that would require a cash outlay of $80,000 for equipment and an additional $20,000 for working capital that would be released at the end of the project.
Using the information above, calculate the net present value of costs (cash outflows) and decide whether it should be purchased in the budget year. Assume a 10 per cent cost of capital (discount rate).
Which of the subsequent accounts are not included in the calculation for Gross Profit and Corporate governance include concerns about business ethics and social responsibility
Assume Holmes pays interest semiannually and the July 1 entry was done correctly. The journal entry at December 31, 2012 would include a credit to what?
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