You are hired as an economic consultant to The Pampered Pet Shop. The Pampered Pet Shop operates in a perfectly competitive industry. This firm is currently producing at a point where market price equals its marginal cost. The Shops total revenue exceeds its total variable cost, but is less than its total cost. You should advise the firm toGroup of answer choicescease production immediately because it is incurring a loss.lower its price so that it can sell more units of output.produce in the short run to minimize its loss, but exit the industry in the long run.raise its price until it breaks even.

You are starting a small business to sell toys. The demand for toys are unlimitand far exceeds your production capacity. The selling price for one toy is $10 and you areprice takers in the toy market (i.e. your production will not affect the market price). Theannual production depends solely on labor working hours:?@@<?A C('D<&$E'@ = 6 × GWhere N denotes the annual labor working hours. Moreover, in the labor market, thelabor’s working hours depend directly on hourly wage you pay:G = −2500 + 1000 × HWhere w denotes the hourly wage. In the first year of your business, you have a budget of$25000 as labor cost. Your goal is to maximize your annual profit = revenue – labor cost.a. (6 points)How do you formulate the annual revenue function from selling toys interms of hourly wage w ?b. (6 points)How do you formulate the total labor cost function in terms of w?c. (8 points)Write down a non-linear program for this optimization problem

Distribution StrategyHappy Dog Kennel Services Pvt. Ltd. is in the business of breeding and selling the following dog breeds:Chihuahua, Siberian Husky, Alaskan Malamute and Samoyed.The average selling price of the puppies of these breeds is around ₹60,000. Pets, and dogs, in particular, fall under the high-involvement product category. The emotions of customers play an important role in making such purchase decisionsConsidering the average selling price of these puppies and the amount of customer involvement in such product sales, which of the following types of distribution strategies would be best suited for such products?Exclusive distribution strategyIntensive distribution strategySelective distribution strategy

The accounts of Fluffy and Ruffly Pet Services show net sales of $63,000, operating expenses of $15,750, gross profit of $37,800, and profit before tax of $22,050. What was the cost of the inventory sold during the year?Group of answer choices$15,750$25,200None of the other answers$40,950$47,250Next

Multiple Choice QuestionA firm's manager is given the following information: To sell 4 units of output, a price of $132 must be charged; this level of output reflects marginal revenue of $102 and marginal costs of $60. If the firm wants to sell 5 units of output, a price of $122 must be charged; this reflects marginal revenue of $82 and marginal costs of $70. To sell 6 units of output, a price of $112 must be charged; at this level of output, marginal revenue will be $62 and marginal costs $80. What should the manager do?Multiple choice question.Produce 4 units of output and charge $132.Produce an amount greater than 6 units.Produce 6 units of output and charge $112.Produce an amount less than 4 units.Produce 5 units of output and charge $122.

Exercise 16-40 (Algo) Variable Cost Variances (LO 16-5)Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 129,000 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows:Direct materials (3 pounds @ $2) $ 6Direct labor (0.25 hours @ $32) 8Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2 million for the coming year.At the end of the year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable.The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products:Sales revenue $ 16,800Less variable costs  Direct materials 836Direct labor 1,028Variable overhead 551Total variable costs $ 2,415Contribution margin $ 14,385Less fixed costs  Fixed manufacturing overhead 2,410Nonmanufacturing costs 2,143Total fixed costs $ 4,553Operating profit $ 9,832During the year, the company purchased 329,000 pounds of material and employed 35,020 hours of direct labor.Required:Compute the direct materials price and efficiency variances.Compute the direct labor price and efficiency variances.Compute the variable overhead price and efficiency variances.Note: For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.