User Account

All Pages

Calculating the joint product pricing

Assignment Help Accounting Basics
Reference no: EM13967469

Joint Product Pricing

Each ton of ore mined from the Baby Doe Mine in Leadville, Colorado, produces 1 ounce of silver and 1 pound of lead in a fixed 1:1 ratio. Marginal costs are $10 per ton of ore mined.

The demand and marginal revenue curves for silver are

PS = $11 - $0.00003QS

MRS = DTRS/DQS = $11 - $0.00006QS

and the demand and marginal revenue curve for lead are

PL = $0.4 - $0.000005QL

MRL = DTRL/DQL = $0.4 - $0.00001QL

where QS is ounces of silver and QL is pounds of lead.

A. Calculate profit-maximizing sales quantities and prices for silver and lead.

B. Now assume that wild speculation in the silver market has created a fivefold (or 500%) increase in silver demand. Calculate optimal sales quantities and prices for both silver and lead under these conditions.

Reference no: EM13967469

Questions Cloud

Question regarding the tying contracts : In a celebrated 4-year antitrust case, the Department of Justice charged Microsoft Corporation with a wide range of anticompetitive behavior.
Challenges related to providing adequate health care : Description of at least two challenges related to providing adequate health care in underdeveloped countries. Then, describe two strategies you might use to address those challenges, and explain why
Computing the price fixing : An antitrust case launched more than a decade ago sent tremors throughout the academic community. Over the 1989-1991 period, the Department of Justice (DOJ) investigated a number of highly selective private colleges for price fixing. The investiga..
What is the overall power factor of the load : Two identical 300-kVA 480-V synchronous generators are connected in parallel to supply a load. The prime movers of the two generators happen to have different speed droop characteristics. When the field currents of the two generators are equal, ..
Calculating the joint product pricing : Each ton of ore mined from the Baby Doe Mine in Leadville, Colorado, produces 1 ounce of silver and 1 pound of lead in a fixed 1:1 ratio. Marginal costs are $10 per ton of ore mined.
How much power does each generator supply at that point : What is the maximum power the three generators can supply in this condition without the ratings of one of them being exceeded? At what frequency does this limit occur? How much power does each generator supply at that point?
Professional development in politics : Professional Development in Politics, Using the spectrum of political competencies, first identify where you are right now
Calculating the two-part pricing : The San Diego Tennis & Racquette Club has asked Rachel Green to devise a profit-maximizing pricing strategy. In doing so, Green knows that a typical player will want to play 15 hours per season if court time costs $25 per hour. On average, this de..
The importance of employee headcount in arriving at solution : Considers the impact of competitive bidding on procuring equipment and supplies APA Format

Reviews

Write a Review

Accounting Basics Questions & Answers

  Marvins agi and transaction

During 2010, Marvin had the following transactions: Marvin's AGI is:

  Determine proper cash balance

Francis Equipment Co. closes its books regularly on December 31, but at the end of 2012 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes.

  Question you own widgets r us and are considering the

question you own widgets r us and are considering the future direction of your company. one choice is to fund expansion

  Gain-loss on the restructuring of the debt

Compute the gain/loss on the restructuring of the debt.

  On september 25 2010 a hurricane destroyed the work in

on september 25 2010 a hurricane destroyed the work in process inventory of biloxi corporation. at that time the

  Role of stakeholders in passing the proposed amendment

Explain the role of a politician, a voter, an activist, and a lobbyist in the public policy change process.

  What is the importance of cash discounts

What's the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company?

  Implement a new accounting information system

How you determined the requirements needed for the accounting information system and how the systems development life cycle could be implemented within the organization.

  Prepare the journal entry by indian river electronics

the balance sheet of the Indian River Electronics Corporation as of December 31, 2012, included 12.25% bonds having a face amount of $90 million.

  Adjusted trial balance for apachi company

Prepare an income statement and a retained earnings statement for the year. There were no issuances of common stock during the year.

  What are the repercussions for the same give examples to

consider the following scenarios1.when we talk about bad checks are thosealways checks our customers have written to

  A project has estimated annual cash flows of 90000 for

a project has estimated annual cash flows of 90000 for three years and is estimated to cost 250000. assume a minimum

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd