CHALLENGE EXERCISES   150.Seats Galore sells 3 models of deck chairs: BlueMagoo, Red Ahead, and Green Seen. Operating results for June are below:   BlueMagooRed AheadGreen SeenTotal Units sold4,0004,5003,50012,000 Revenue$36,000$22,500$35,000$93,500 Variable departmental costs14,00013,50017,50045,000 Direct fixed costs6,0004,0005,00015,000 Allocated fixed costs8,0009,0007,00024,000 Net income$8,000($4,000)     $5,500$9,500   a. If Red Ahead is discontinued, management estimates that sales of BlueMagoo will increase by 20%. In good form, prepare an incremental […]

  100. Morrell Inc. had the following information available from its 2011 and 2012 condensed balance sheets  Morrell Inc. Comparative Balance Sheets At December 31, 2012 and 2011     2012   2011   $ change   % change Current assets $  90,000   $  50,000         Long-term assets   300,000     200,000         Total assets $390,000   $250,000 […]

  51) Refer to Figure 19.2. the U.S. has A) a comparative advantage in producing trucks. B) an absolute advantage in producing trucks. C) a comparative advantage in producing cars. D) no comparative advantage in producing either cars or trucks.   52) Assume that Blade Runner specializes in producing in-line skates and Hang Ten specializes in producing surfboards. After trade Blade Runner exports 800 pairs […]

    102.A company believes it can sell 2,000,000 units of its proposed new bottle stopper at a price of $16.00 each. If the company desires to make a profit of $3,000,000 on the bottle stopper, what is the target cost for each bottle stopper? A.$14.50 B.$16.00 C.$17.50 D.$9.67   103.Light Bright believes it can sell 40,000 of its newly developed laser lights at a […]

    31) Which of the following is a part of the “employer mandate” provision of the Patient Protection and Affordable Care Act (ACA)? A) Every firm with more than 3 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan. B) small businesses with fewer than 50 employees will be exempt from being required to participate in […]

    21) If the automobile workers’ union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles? A) The supply increases. B) The supply decreases. C) The quantity supplied increases. D) The quantity supplied decreases. E) Both answers B and D are correct.   22) Plywood is used in the construction of houses. If the price […]

  The fixed cost of producing 500 units of Good Y is $25,000 while the variable cost of producing 500 units of Good Y is $60,000. 30) Refer to the scenario above. If the market for Good Y is monopolistically competitive, a firm producing Good Y will shut down production in the short run if price falls below ________. A) $60 B) $200 C) $120 […]

  11) If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm’s average total cost is $52, then the firm A) incurs an economic loss of $2 per unit. B) makes an economic profit of $2 per unit. C) makes zero economic profit. D) incurs a total economic loss of $52. E) More information is […]

  81) Which of the following is the best description of a “free rider”? Someone who A) pays for a good but does not receive any benefit from the good. B) receives the benefit of a good without having to pay for it. C) does not produce any goods but is able to consume them. D) consumes a good until the marginal benefit received from […]

    61.For the following reaction situation, select a correct product characterization using the response list:  1-hexyne + one Cl2 a.monochlorinated hydrocarbonc.trichlorinated hydrocarbon b.dichlorinated hydrocarbond.tetrachlorinated hydrocarbon       62.For the following reaction situation, select a correct product characterization using the response list:  1,4-hexadiene + two Cl2 a.monochlorinated hydrocarbonc.trichlorinated hydrocarbon b.dichlorinated hydrocarbond.tetrachlorinated hydrocarbon       63.For the following reaction situation, select a correct product […]