The market supply of cigarettes is shown in the table below.

Supply of Cigarettes
Quantity of Cigarettes Supplied (packs)
Price (dollars) Pre-Tax Post-Tax
$1.00 100
1.50 150
2.00 200
2.50 250
3.00 300
Imagine that, in order to discourage people from smoking, the government decides to place an excise tax on every pack of cigarettes sold directly affecting suppliers. As a result of the tax, the supply of cigarettes decreases by 150 packs of cigarettes at each price.

Graph the pre-tax market supply curve and graph the after-tax market supply curve.

2. Managers at a local home improvement store see that new home sales in their area have increased. They order more refrigerators for their store. They likely do this because they assume that:

a. new homes and refrigerators are complements

b. new homes and refrigerators are substitutes

c. refrigerators are inferior goods

d. refrigerators are normal goods

How do you get a monthly budget spend down

Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no

Sweeten company had no jobs in progress at the beginning of march and no beginning inventories. the company has two manufacturing departments--molding and fabrication. it started, completed, and sold only two jobs during march—job p and job q. the following additional information is available for the company as a whole and for jobs p and q (all data and questions relate to the month of march): molding fabrication total estimated total machine-hours used 2,500 1,500 4,000 estimated total fixed manufacturing overhead $ 10,000 $ 15,000 $ 25,000 estimated variable manufacturing overhead per machine-hour $ 1.40 $ 2.20 job p job q direct materials $ 13,000 $ 8,000 direct labor cost $ 21,000 $ 7,500 actual machine-hours used: molding 1,700 800 fabrication 600 900 total 2,300 1,700 sweeten company had no underapplied or overapplied manufacturing overhead costs during the month. required: for questions 1-8, assume that sweeten company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. for questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. 1. what was the company’s plantwide predetermined overhead rate? (round your answer to 2 decimal places.) next