Electronic equipment manufacturer Dynamo Electric Inc. makes several types of surge protectors. Their base model surge protector has monthly fixed costs of $\$ 1045$. This particular model wholesales for $\$ 10$ each and costs $\$ 4.50$ per unit to manufacture.

(a) Write the function for Dynamo's monthly total costs.

(b) Write the function for Dynamo's monthly total revenue.

( c ) Write the function for Dynamo's monthly profit.

(d) Find the number of this type of surge protector that Dynamo must produce and sell each month to break even.

You hire a new assistant production manager whose prior experience is with a company that produced goods to order. Your company engages in continuous production of homogeneous products that go through various production processes. Your new assistant e-mails you questioning some cost classifications on an internal report—specifically why the costs of some materials that do not actually become part of the finished product, including some labor costs not directly associated with producing the product, are classified as direct costs. Respond to this concern via memorandum.

The data in Table 13P-3 are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool manufacturing firm in Peru. The alpaca wool industry is competitive.

TABLE 13P-3

Please indicate your level of agreement or disagreement with the following claims. Explain your responses in brief. a. A situation where a company's production scale is expanded results in greater costs per produced unit is referred to as having increasing returns to scale. b. The term "constant returns to scale" describes a situation in which an expansion of a company's production scale has no impact on costs per produced unit. c. The term "declining returns to scale" describes a scenario in which a company's scale of production results in reduced costs per produced unit.

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year,$322,000 of overhead costs are incurred and 130,000 hours are used.

Instructions (b) What is the amount of under- or overapplied overhead at December 31?

Assume that Hogan Surgical Instruments Co. has $2,500,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 18 percent, but with a high-liquidity plan, the return will be 14 percent. If the firm goes with a short-term financing plan, the financing costs on the$2,500,000 will be 10 percent, and with a long-term financing plan, the financing costs on the $2,500,000 will be 12 percent. (Review Table 6-11 for parts a, b, and c of this problem.) Compute the anticipated return after financing costs with the most conservative asset financing mix.

Kennesaw Credit Union offers a 4.25%, 15-year mortgage. Sadie wants to borrow $300,000 and purchase enough negative points to eliminate her$9,000 closing costs. Each point increases her APR by 0.125% and reduces the bank's closing costs by 1% of the principal. What will her new APR be?

Melted Goodness mixes Swiss chocolate and whipping cream to make a dessert fondue. Swiss chocolate costs $\$ 1.60$ per ounce and whipping cream costs $\$ 0.30$ per ounce. How much of each does Melted Goodness use in order to make $65 \mathrm{oz}$ of fondue at a cost of $\$ 78.00$?

Morning Glow Corporation uses a process costing system for its two production departments: Mixing and Packaging. The company provided the following manufacturing cost information for the month of May:

$$\begin{array}{lrr} & \text{Mixing} & \text{ Packaging}\\ \hline \text{Beginning work in process} &\$ 500 &\$900\\ \text{Costs transferred in .} &? &? \\ \text{Costs incurred in May} & 3,000& 5,000\\ \text{Ending work in process} & 1,200& 1,500\\ \end{array}$$

Record the transfer of costs from the Mixing Department to the Packaging Department in May.

Match the word or phrase with the most appropriate choice from the list below.

$\underline{\qquad}$ Price

a) The amount of money that a company takes in

b) The sum affixed costs and variable costs

c) The point at which total revenue equals total cost

d) What consumers pay per item

e) The difference between total revenue and total cost

f) What companies spend whether or not a product is produced

g) The point at which supply equals demand

h) The costs that vary according to the number of items produced

Match the word or phrase with the most appropriate choice from the list below.

$\underline{\qquad}$ Total profit

a) The amount of money that a company takes in

b) The sum affixed costs and variable costs

c) The point at which total revenue equals total cost

d) What consumers pay per item

e) The difference between total revenue and total cost

f) What companies spend whether or not a product is produced

g) The point at which supply equals demand

h) The costs that vary according to the number of items produced

The Nesmiths' old clothes washer costs c dollars to run for a year. They replace it with a new energy-efficient washer that costs w dollars, but saves p percent per year in energy usage. How many years will it take for the washer to pay for itself? Express your answer algebraically using the greatest integer function.

Carla is a carpenter who was been hired to make a closed box with a square base and volume of 250 cubic meters. The material for the top and bottom of the box costs $2 per square meter, and the material for the sides costs$1 per square meter. Can Carla construct the box for less than $300?

An item costs $\$ 500$ at time $t=0$ and costs $\$ P$ in year $t$. When inflation is $r \%$ per year, the price is given by

$$P=500 e^{r t / 100} \text {. }$$

If $r$ is a constant, at what rate is the price rising (in dollars per year)
(i) Initially? (ii) After $2$ years?