Brawndo has a constant marginal cost of production of S2 a unit. It sells Brawndo to Vespucci at a wholesale price of w per unit. Vespucci, in turn sets the retail price of p per unit and faces a demand curve of 40-4 Brawndo moves first and chooses w. Then, Vespucci, knowing w chooses p. Each operates so as to maximize its own profit. 1. What are the profit maximizing choices of w and p?
2. A local government is unsure of the health claims promised by Brawndo's founders, so it decides to author a study. The study will be funded by a 5% tax on the sales price of Brawndo. The Government must decide whether to impose the sales tax on Vespucci (i. e. at the retail level) or on Brawndo (at the wholesale level). Proponents of the tax say it does not matter.

a. Suppose the tax is imposed on Vespucci's retail price. What is the adjustment inw and p that Brawndo and Vespucci will make to maximize their respective profits?
b. Suppose the tax is imposed on Brawndo's wholesale price. What is the adjustment in w and p that Brawndo and Vespucci will make to maximize their respective profits?
c. Which of the two polices will reduce consumption of Brawndo more?
d. Which of the two policies will generate the most tax revenue?

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. if the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?

11.     before adding cream to a simmering soup, you need to a. simmer the cream. b. chill the cream. c. strain the cream through cheesecloth. d. allow the cream reach room temperature. student d   incorrect which answer is right?

Required information problem 15-1a production costs computed and recorded; reports prepared lo c2, p1, p2, p3, p4 [the following information applies to the questions displayed below. marcelino co.'s march 31 inventory of raw materials is $84,000. raw materials purchases in april are $540,000, and factory payroll cost in april is $364,000. overhead costs incurred in april are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. the predetermined overhead rate is 50% of direct labor cost. job 306 is sold for $670,000 cash in april. costs of the three jobs worked on in april follow. job 306 job 307 job 308 balances on march 31 direct materials $30,000 $36,000 direct labor 25,000 14,000 applied overhead 12,500 7,000 costs during april direct materials 133,000 210,000 $100,000 direct labor 105,000 150,000 101,000 applied overhead ? ? ? status on april 30 finished (sold) finished in process (unsold) required: 1. determine the total of each production cost incurred for april (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from march 31). a-materials purchases (on credit). b-direct materials used in production. c-direct labor paid and assigned to work in process inventory. d-indirect labor paid and assigned to factory overhead. e-overhead costs applied to work in process inventory. f-actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) g-transfer of jobs 306 and 307 to finished goods inventory. h-cost of goods sold for job 306. i-revenue from the sale of job 306. j-assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions. 3. prepare a schedule of cost of goods manufactured. 4.1 compute gross profit for april. 4.2 show how to present the inventories on the april 30 balance sheet.