Submitted By krconner

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Words 577

Pages 3

Keidra Conner

BUS 640 Managerial Economics

October 15, 2012

Ch.8 Applied Problem 2

2. At a management luncheon, two managers were overheard arguing about the following statement: “A manager should never hire another worker if the new person causes diminishing returns.” Is this statement correct? If so why? If not, explain why not. Yes, this statement is correct because in some cases hiring new workers can become negative and cause the marginal product to fall. The text states the managers beyond the point of diminishing returns but not to the point of negative marginal product (Thomas & Maurice, 2011, pp. 296-297).

Ch.9 Applied Problems 2 & 4

2. The largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer’s wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is the publishing house making the optimal input choice? Why or Why not? If not, how should the manager of Largo Publishing House adjust input usage? No, the publishing house is not making the optimal input choice because this is not the least-cost combination of inputs. The manager should hire another printer to maximize the output at a lesser cost. This will balance the amount of inputs for maximizing production of the given output.

4. The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (i.e., marginal product is constant and equal to 200). Installation of the first textile machine on the assembly line will increase output by 1,800 units daily. Currently the firm assembles 5,400 units per day.

a. The financial analysis…...

...Managerial Economics MBA First Year Paper No. 2 School of Distance Education Bharathiar University, Coimbatore - 641 046 Author: Atmanand Copyright © 2007, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT-I ......

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...This page is intentionally left blank MANAGERIAL ECONOMICS S E V E N T H E D I T I O N To Our Families W. F. S S. G. M MANAGERIAL ECONOMICS S E V E N T H E D I T I O N W i l l i a m F. S a m u e l s o n Boston University Stephen G. Marks Boston University JOHN WILEY & SONS, INC. VICE PRESIDENT & EXECUTIVE PUBLISHER SENIOR CONTENT EDITOR ASSISTANT EDITOR EDITORIAL ASSISTANT PRODUCT DESIGNER PRODUCTION MANAGER PRODUCTION EDITOR ASSOCIATE DIRECTOR OF MARKETING SENIOR MARKETING MANAGER MARKETING ASSISTANT CREATIVE DIRECTOR SENIOR DESIGNER PRODUCTION MANAGEMENT SERVICES SENIOR ILLUSTRATION EDITOR PHOTO EDITOR COVER PHOTO George Hoffman Jennifer Manias Emily McGee Erica Horowitz Greg Chaput Dorothy Sinclair Erin Bascom Amy Scholz Jesse Cruz Courtney Luzzi Harry Nolan James O’Shea Furino Production Anna Melhorn Sheena Goldstein Henry Georgi/Getty Images, Inc. This book was set in New Baskerville by MPS Limited, and printed and bound by RRD Jefferson City. The cover was printed by RRD Jefferson City. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to......

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...Chapter 9 Discussion Questions |9-1. |How is the future value (Appendix A) related to the present value of a single sum (Appendix B)? | | | | | |The future value represents the expected worth of a single amount, whereas the present value represents the current | | |worth. | | | | | |FV = PV (1 + I)n future value [pic] | | | | |9-2. |How is the present value of a single sum (Appendix B) related to the present value of an annuity (Appendix D)? | | | | | |The present value of a single amount is the discounted value for one future payment, whereas the present value of an | | |annuity represents......

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...MANAGERIAL ACCOUNTING CHAPTER 8 1. Is Granger Stokes using budges as a planning and control tool? Granger Stokes is behaving like an activist shareholder more concerned with short term gain than a management executive whose primary goal should be positioning the firm for a better competitive outlook over the long term. He is not using the company budgets as a planning and control tool, but is instead using them to boost sales at literally any costs. More specifically, he is impairing the budgetary control effect and essentially unleashing his managers to take aggressive action in pursuit of sales targets. 2. What are the behavioral consequences of the way budgets are being used at PrimeDrive? The behavioral consequences are that managers will take shortcuts to achieve their short term sales targets. So much so that quality control measures are circumvented, and well established business procedures are ignored. The fact that defective drives are knowingly shipped to new customers is a huge red flag. The warranty costs alone will hit the firm when it least expects it because it is highly likely that no reserve provisions are being made since this issue is being swept under the rug, so to speak. When it becomes time to file company financial reports for the period, the figures will be inaccurate and misleading because any financial losses related to the defective drives are not being reported properly. 3. What, if anything, do you think Keri Kalani should do? ...

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...MANAGERIAL ECONOMICS Suggested Practice Problems • All multiple choice problems in Chapters 21, 22, and 23 • Individual problems: 21.2, 21.3, 22.5, 23.3, 23.5 • Answers (Click Here) Complete Final Exam. The exam must be completed by Sunday at 11:59 p.m. ET. Exam covers Weeks 5, 6, 7, and 8. Chapter 21 – Getting Employees to Work in the Firm’s Best Interests Chapter 22 – Getting Divisions to Work in the Firm’s Best Interests Chapter 23 – Managing Vertical Relationships Managerial Economics, 3rd Edition Luke M. Froeb; Brian T. McCann; Michael R. Ward; Mikhael Shor http://en.wikipedia.org/wiki/Managerial_economics / http://www.coursehero.com/sitemap/schools/501-FIT/courses/1467122-ECONBUS-5421/ http://www.coursehero.com/sitemap/states/Massachusetts/ Managerial economics is the "application of the economic concepts and economic analysis to the problems of formulating rational managerial decisions".[1]It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice.[2] It draws heavily from quantitative techniques such as regression analysis, correlation and calculus.[3] If there is a unifying theme that runs through most of managerial economics, it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed......

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...Problem 8-21 (45 minutes) Calculation of predetermined fixed overhead rate: Predetermined fixed overhead rate | = | | | | | | = | = $2 per unit | Cost per Unit | Direct material | $ 6 | | Direct labor | 4 | | Variable overhead | 3 | | a. Cost per unit under variable costing | $13 | | Fixed overhead per unit under absorption costing | 2 | | b. Cost per unit under absorption costing | $15 | 2. | a. Delizioso S.p.A. Absorption-Costing Income Statement For the Year Ended December 31, 20x1 | | | | | | Sales revenue (130,000 units sold at $20 per unit) | $2,600,000 | | Less: Cost of goods sold (at absorption cost of $15 per unit) | 1,950,000 | | Gross margin | $ 650,000 | | Less: Selling and administrative expenses: | | | Variable (at $1 per unit) | 130,000 | | Fixed | 150,000 | | Operating income | $ 370,000 | Problem 8-21 (Continued) | b. Delizioso S.p.A. Variable-Costing Income Statement For the Year Ended December 31, 20x1 | | | | | Sales revenue (130,000 units sold at $20 per unit) | $2,600,000 | | Less: Variable expenses: | | | Variable manufacturing costs (at variable cost of $13 per unit) | 1,690,000 | | Variable selling and administrative costs (at $1 per unit) | 130,000 | | Contribution margin | $ 780,000 | | ...

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...CHAPTER 1: Exercise 14 If Ken stayed open on Saturdays, the added income would be $130,000 per year ($2,500 x 52), while the additional costs are shown to be $1,000 ($700 + $500 + $100 + $200). Using these two figures, we can calculate the opportunity cost (the loss from an opportunity not taken), which would be $1,500 ($2,500 - $1,000). To me, this says that Ken should keep his shop open on Saturday’s. Rent or depreciation of office equipment do not need to be calculated because these are fixed costs. They would not change regardless of how many days his shop is open nor his shops production. Also, rent of course would not change if his shop stays open on Saturday’s because rent covers the whole month. Problem 2 a.) If we reference 1-1 so we can see the production costs, we need to add the ingredient costs of $20,000 + labor costs of $12,000, totaling $32,000. Then divide that by the number of jars that actually produced (25,000). This equals $1.28/one jar of salsa. The incremental cost is calculated as follows: $1.28 x 50,000 (extra jars of salsa) = $64,000. b.) The revenue started out at $1,625,000 (325,000 jars x $5.00), while the new revenue would be $1,725,000 (375,000 x $4.60). After calculating the difference, we can see that the incremental revenue after the reduction of price would be $100,000 ($1,725,000 - $1,625,000). c.) Yes, he should lower the price of its salsa. Problem 4 a.) On page 6 of our text book, we learn about the......

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...MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase here http://devrycourse.com/math-533-applied-managerial-statistics-week-1-to-8 Product Description MATH 533 GM 533, Applied Managerial Statistics Week 1 Homework Problems (Mystat Lab) Discussion Question 1 and 2 Quiz Week 2 Course Project Part A, Exploratory Data Analysis (SALESCALL Inc) Course Project Part 1, Exploratory Data Analysis (AJ Davis Department Store) Homework Problems (MyStatLab) Discussion Question 1 and 2 Week 3 Homework Problem, MyStatLab (02 Sets) Discussion Question 1 and 2 Week 4 Homework Problems (MyStatLab) Chapter 7 Solutions, Confidence Interval Chapter 8 Solutions, Hypothesis Testing Discussion Question Week 5 Homework Problems (MyStatLab) Chapter 9, Hypothesis Testing Discussion Question 1 and 2 Quiz Week 6 Homework Problems (MyStatLab) Course Project Part B, Hypothesis Testing and Confidence Intervals (SALESCALL Inc) Course Project Part B, Hypothesis Testing and Confidence Intervals ( AJ Davis Department Store) Chapter 13 Solution, Simple Linear Regression Analysis Discussion Question 1 and 2 Week 7 Course Project Part C, Regression and Correlation Analysis (SALESCALL Inc) Course Project Part C, Regression and Correlation Analysis (AJ Davis Department Store) Week 8 Final Exam 1 Final Exam 2 Final Exam 3 MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase......

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...Managerial Financial 3-1: Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Answer: Days Sales Outstanding = Receivables / Average Sales per day or Receivables / (Annual Sales/365) DSO 20 = Receivables / 20000 Receivables = DSO x Average daily sales = 20 x $20,000 Receivables = $400,000 3-2: Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Answer: Equity Multiplier (EM) = 2.5 Equity Ratio = 1/ EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60% 3-3: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer: Book value per share = Common equity/shares outstanding ($6,000,000,000/800,000,000) = $7.5 Market/book ratio = market price per share/book value per share ($75/$7.5) = 10 3-4: A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? Answer: Price/Cash flow ratio = Price per share (PPS) / Cash flow per share 8...

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...Problem 1: A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at the end of Year 1, and another $7 million can be provided at the end of Year 2. Describe your answer for each item below in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points: a. Assuming the opportunity interest rate is 8%, what is the present value of the second alternative mentioned above? Which of the two alternatives should be chosen and why? b. How would your decision change if the opportunity interest rate is 12%? c. Provide a description of a scenario where this kind of decision between two types of payment streams applies in the �real-world� business setting. Problem 2: The San Diego LLC is considering a three-year project, Project A, involving an initial investment of $80 million and the following cash inflows and probabilities: Describe your answer for each question in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points: a. Describe and calculate Project A�s expected net present value (ENPV) and standard deviation (SD), assuming the discount rate (or risk-free interest rate) to be 8%. What is the decision rule in terms of ENPV? What will be San Diego LLC�s decision regarding......

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...ACC 100 WEEK 9 QUIZ CHAPTER 8 To purchase this visit here: http://www.activitymode.com/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 - Strayer Latest Activity mode aims to provide quality study notes and tutorials to the students of ACC 100 Week 9 Quiz Chapter 8 in order to ace their studies. ACC 100 WEEK 9 QUIZ CHAPTER 8 To purchase this visit here: http://www.activitymode.com/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 - Strayer Latest Activity mode aims to provide quality study notes and tutorials to the students of ACC 100 Week 9 Quiz Chapter 8 in order to ace their studies. ACC 100 WEEK 9 QUIZ CHAPTER 8 To purchase this visit here: http://www.activitymode.com/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 - Strayer Latest Activity mode aims to provide quality study notes and tutorials to the students of ACC 100 Week 9 Quiz Chapter 8 in order to ace their studies. ACC 100 WEEK 9 QUIZ CHAPTER 8 To purchase this visit here: http://www.activitymode.com/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 - Strayer Latest Activity mode aims to provide quality study notes and...

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...MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase here http://chosecourses.com/MATH%20533/math-533-applied-managerial-statistics-week-1-to-8 Product Description MATH 533 GM 533, Applied Managerial Statistics Week 1 Homework Problems (Mystat Lab) Discussion Question 1 and 2 Quiz Week 2 Course Project Part A, Exploratory Data Analysis (SALESCALL Inc) Course Project Part 1, Exploratory Data Analysis (AJ Davis Department Store) Homework Problems (MyStatLab) Discussion Question 1 and 2 Week 3 Homework Problem, MyStatLab (02 Sets) Discussion Question 1 and 2 Week 4 Homework Problems (MyStatLab) Chapter 7 Solutions, Confidence Interval Chapter 8 Solutions, Hypothesis Testing Discussion Question Week 5 Homework Problems (MyStatLab) Chapter 9, Hypothesis Testing Discussion Question 1 and 2 Quiz Week 6 Homework Problems (MyStatLab) Course Project Part B, Hypothesis Testing and Confidence Intervals (SALESCALL Inc) Course Project Part B, Hypothesis Testing and Confidence Intervals ( AJ Davis Department Store) Chapter 13 Solution, Simple Linear Regression Analysis Discussion Question 1 and 2 Week 7 Course Project Part C, Regression and Correlation Analysis (SALESCALL Inc) Course Project Part C, Regression and Correlation Analysis (AJ Davis Department Store) Week 8 Final Exam 1 Final Exam 2 Final Exam 3 MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase......

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...ACC 100 WEEK 9 QUIZ CHAPTER 8 TO purchase this tutorial visit following link: http://wiseamerican.us/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@WISEAMERICAN.US ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 – STR Latest ACC 100 WEEK 9 QUIZ CHAPTER 8 TO purchase this tutorial visit following link: http://wiseamerican.us/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@WISEAMERICAN.US ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 – STR Latest ACC 100 WEEK 9 QUIZ CHAPTER 8 TO purchase this tutorial visit following link: http://wiseamerican.us/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@WISEAMERICAN.US ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 – STR Latest ACC 100 WEEK 9 QUIZ CHAPTER 8 TO purchase this tutorial visit following link: http://wiseamerican.us/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@WISEAMERICAN.US ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 – STR Latest ACC 100 WEEK 9 QUIZ CHAPTER 8 TO purchase this tutorial visit following link: http://wiseamerican.us/product/acc-100-week-9-quiz-chapter-8/ Contact us at: SUPPORT@WISEAMERICAN.US ACC 100 WEEK 9 QUIZ CHAPTER 8 ACC 100 Week 9 Quiz Chapter 8 – STR Latest ACC 100 WEEK 9 QUIZ CHAPTER 8 TO purchase this tutorial visit following link: http://wiseamerican.us/product/acc-100-week-9-quiz-chapter-8/ Contact us......

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...MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase here http://sellfy.com/p/NXMH/ Product Description MATH 533 GM 533, Applied Managerial StatisticsWeek 1 Homework Problems (Mystat Lab) Discussion Question 1 and 2 Quiz Week 2 Course Project Part A, Exploratory Data Analysis (SALESCALL Inc) Course Project Part 1, Exploratory Data Analysis (AJ Davis Department Store) Homework Problems (MyStatLab) Discussion Question 1 and 2 Week 3 Homework Problem, MyStatLab (02 Sets) Discussion Question 1 and 2 Week 4 Homework Problems (MyStatLab) Chapter 7 Solutions, Confidence Interval Chapter 8 Solutions, Hypothesis Testing Discussion Question Week 5 Homework Problems (MyStatLab) Chapter 9, Hypothesis Testing Discussion Question 1 and 2 Quiz Week 6 Homework Problems (MyStatLab) Course Project Part B, Hypothesis Testing and Confidence Intervals (SALESCALL Inc) Course Project Part B, Hypothesis Testing and Confidence Intervals ( AJ Davis Department Store) Chapter 13 Solution, Simple Linear Regression Analysis Discussion Question 1 and 2 Week 7 Course Project Part C, Regression and Correlation Analysis (SALESCALL Inc) Course Project Part C, Regression and Correlation Analysis (AJ Davis Department Store) Week 8 Final Exam 1 Final Exam 2 Final Exam 3 MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase here http://sellfy.com/p/NXMH/ Product Description MATH 533 GM 533, Applied......

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...MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase here http://sellfy.com/p/NXMH/ Product Description MATH 533 GM 533, Applied Managerial StatisticsWeek 1 Homework Problems (Mystat Lab) Discussion Question 1 and 2 Quiz Week 2 Course Project Part A, Exploratory Data Analysis (SALESCALL Inc) Course Project Part 1, Exploratory Data Analysis (AJ Davis Department Store) Homework Problems (MyStatLab) Discussion Question 1 and 2 Week 3 Homework Problem, MyStatLab (02 Sets) Discussion Question 1 and 2 Week 4 Homework Problems (MyStatLab) Chapter 7 Solutions, Confidence Interval Chapter 8 Solutions, Hypothesis Testing Discussion Question Week 5 Homework Problems (MyStatLab) Chapter 9, Hypothesis Testing Discussion Question 1 and 2 Quiz Week 6 Homework Problems (MyStatLab) Course Project Part B, Hypothesis Testing and Confidence Intervals (SALESCALL Inc) Course Project Part B, Hypothesis Testing and Confidence Intervals ( AJ Davis Department Store) Chapter 13 Solution, Simple Linear Regression Analysis Discussion Question 1 and 2 Week 7 Course Project Part C, Regression and Correlation Analysis (SALESCALL Inc) Course Project Part C, Regression and Correlation Analysis (AJ Davis Department Store) Week 8 Final Exam 1 Final Exam 2 Final Exam 3 MATH 533 Applied Managerial Statistics Week 1 to 8 Purchase here http://sellfy.com/p/NXMH/ Product Description MATH 533 GM 533, Applied......

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