The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases 175,000
Direct labor 254,000
Indirect labor 109,000
Selling and administrative salaries 133,000
Building depreciation 80,000
Other factory cost 344,000
Sales revenue($130 per unit) 1,495,000
75% of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
Inventory data:
January 1 December 31
Raw material 15,800 18,200
Work in process 35,700 62,100
Finished goods 111,000 97,900
The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
Required:
1. Calculate Lone Oak's manufacturing overhead for the year.
2. Calculate Lone Oak's cost of goods manufactured.
3. Compute the company's cost of goods sold.
4. Determine net income for 20x1, assuming a 30% income tax rate.
5. Determine the number of completed units manufactured during the year.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Brenda wants a new car that will be dependable transportation and look good. she wants to satisfy both functional and psychological needs. true or false

Why does the downward-sloping production possibilities curve imply that factors of production are scarce?