Value strings produces student-grade violins for beginning violin students. the company produced 2,500 violins in its first month of operations. at month end, 750 finished violins remained unsold. there was no inventory in work in progress. violins were sold for $122.50 each. total costs from the month are as follows: direct materials used: $125,000 direct labor: $50,000 variable manufacturing overhead: $32,000 fixed manufacturing overhead: $42,500 variable selling and administrative expenses: $8,000 fixed selling and administrative expenses: $12,100 the company prepares traditional (absorption costing) income statements for its bankers. value strings would also like to prepare contribution margin income statements for management use. compute the following amounts that would be shown on these income statements. 1. gross profit 2. contribution margin 3. total expenses shown below the gross profit line 4. total expense shown below the contribution margin line 5. dollar value of ending inventory under absorption costing 6. dollar value of ending inventory under variable costing 7. which income statement will have a higher operating income? by how much? explain.

If the supply of aisle seats and middle seats on an airplane is the same, but the demand for aisle seats is greater than the demand for middle seats, then the equilibrium price of aisle seats will be less than the equilibrium price of middle seats. true false

Afirm produces a product in a competitive industry and has a total cost function (tc) of tc(q) = 60 + 10q + 2q2 and a marginal cost function (mc) of mc(q) = 10 + 4q. at the given market price (p) of $20, the firm is producing 5.00 units of output. is the firm maximizing profit? no what quantity of output should the firm produce in the long run? the firm should produce unit s) of output. (enter your response as an integer.)

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.