Joan Demers launched a professional services firm on March 1. The firm will prepare financial statements at each month-end. In March (its first month), Demers executed the following transactions. Demers (owner) invested in the company, $150,000 cash and $30,000 in property and equipment. The company issued common stock to Demers. The company paid $5,000 cash for rent of office furnishings and facilities for March. The company performed services for clients and immediately received $10,000 cash earned. The company performed services for clients and sent a bill for $20,000 with payment due within 60 days. The company compensated an office employee with $6,000 cash as salary for March. The company received $12,000 cash as partial payment on the amount owed from clients in the 4th transaction above. The company paid $2,000 cash in dividends to Demers (owner). What is the net operating income for the month of March

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.