+ e) If the market price for newsprint falls to 450$ a ton, what do you recommend QUEPAP's management do, shut down production or continue operation ?

You are retained as an economic consultant by a leading Canadian newsprint preducer QUEBEC PULP \& PAPER INC (OUEPAP). QUepap in engaged, directly and through subsidiaries, in processing. manufacturing and marketing of pulp and paper products in Cartada and the USA. Your mandate is to advise the firm's senior management on matters pertaining to prieing, production and long-rango planning- You are supplied with product and company data, and you are asked to submit a set of recommendations. Based on the data below, submit recommendations to each of the following questions: Based on the above information, you are asked to formulate and submit recommendations to management Prob/ems 5.9 - 5.11 relate to this common set of data. However, answers to any one question are independent of the answers to previous questions. All other variables are presumed non-essential or absent. 5.09_a) What price would you recommend QUEPAP charge in order to maximize short-run profits? At this price what quantity (Q) will be sold? Calculate total sales revenue (TR). total cost (TC) and after-tax total profit (loss), as well as unit cost (AC), AFC, AVC and MC. Illustrate graphically using a set of two diagrams (one for total magnitudes, one for unit magnitudes). b) Assuming no provision for the opportunity cost of the firm's equity capital has been made in the calculation of total costs. What is the firm's after-tax rate of retum on equity (ROE)? Over the past seven years, the after-tax rate of retum on equity in the newsprint industry has averaged 15% per year. What is the firm's after-tax accounting. normal and economic profit (loss) rate? c) What price would yot recommend QUEPAP charge in order to maximize sales revenues (TR) regardless of its impact on profit or loss? Based on this price, calculate the quantity to be sold (Q), total revenue (TR), total cost (TC) and total profit or loss, after tax. d) What is the minimum quantity of newsprint QUEPAP should sell in order to breakeven? Produce a graph indicating the company's break/even point? You are retained as an economic consultant by a leading Canadian newsprint preducer QUEBEC PULP \& PAPER INC (OUEPAP). QUepap in engaged, directly and through subsidiaries, in processing. manufacturing and marketing of pulp and paper products in Cartada and the USA. Your mandate is to advise the firm's senior management on matters pertaining to prieing, production and long-rango planning- You are supplied with product and company data, and you are asked to submit a set of recommendations. Based on the data below, submit recommendations to each of the following questions: Based on the above information, you are asked to formulate and submit recommendations to management Prob/ems 5.9 - 5.11 relate to this common set of data. However, answers to any one question are independent of the answers to previous questions. All other variables are presumed non-essential or absent. 5.09_a) What price would you recommend QUEPAP charge in order to maximize short-run profits? At this price what quantity (Q) will be sold? Calculate total sales revenue (TR). total cost (TC) and after-tax total profit (loss), as well as unit cost (AC), AFC, AVC and MC. Illustrate graphically using a set of two diagrams (one for total magnitudes, one for unit magnitudes). b) Assuming no provision for the opportunity cost of the firm's equity capital has been made in the calculation of total costs. What is the firm's after-tax rate of retum on equity (ROE)? Over the past seven years, the after-tax rate of retum on equity in the newsprint industry has averaged 15% per year. What is the firm's after-tax accounting. normal and economic profit (loss) rate? c) What price would yot recommend QUEPAP charge in order to maximize sales revenues (TR) regardless of its impact on profit or loss? Based on this price, calculate the quantity to be sold (Q), total revenue (TR), total cost (TC) and total profit or loss, after tax. d) What is the minimum quantity of newsprint QUEPAP should sell in order to breakeven? Produce a graph indicating the company's break/even point