Merritt equipment company sells computers for $1,360 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. during 2017, the company sold 860 computers on credit. based on past experience, the company has estimated the per unit 2-year warranty costs as $40 for parts and $60 for labor. (assume sales all occur at december 31, 2017.)in 2018, merritt incurred actual warranty costs relative to 2017 computer sales of $10,000 for parts and $15,000 for labor. under the expense warranty approach, give the entries to reflect the above transactions (accrual method) for 2017 and 2018. (credit account titles are automatically indented when the amount is entered. do not indent manually.)

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

Which two of the following are benefits of consumer programs

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?