The profit P, in thousand of dollars, that a manufacturer makes is a function of the number N of items produced in a year, and the formula is as follows. P= -0.2N² + 3.6N - 9 (a) Express using functional notation the profit at a production level of 4 items per year. P( Calculate that value. thousand dollars (b) Determine the two break-even points for this manufacturer-that is, the two production levels at which the profit is zero. N = (smaller value) N = (larger value) (c) Determine the maximum profit if the manufacturer can produce at most 19 in a year. thousand dollars
Q: Giant Growth Co. is growing fast. Dividends are expected to grow at a 20% growth rate for the next…
A: To Find: Intrinsic Value of Share
Q: A European put has strike $18 and expires in three time steps. Using Cox- notation, the underlying…
A: Strike price is $18 Spot price S is 15 R is 1.1 U is 1.2 d is 0.95 To Find: Value of put option at…
Q: Share Valuation A. Giant Growth Co. is growing fast. Dividends are expected to grow at a 20% growth…
A: Here, To Find: Part A. Intrinsic value of stock =? Part B. Decision to buy at the current market…
Q: why is ESG important for genera
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: susan sells jewelry. She gets a monthly salary plus commission on her sales. Her monthly salary is…
A: The salary may be partially fixed and partially variable depending on sales. The sales commission…
Q: On October 31, Year 1, Trailer Homes Company (THC) determines that it will need to buy 175,000 lbs…
A: With the strike price (X) and the market spot price (S) at forward date when trading take place. Net…
Q: j. Find the PV and the FV of an investment that makes the following end-of-year payments. The…
A: Information provided: Interest rate = 10% Year 1 Payment = $100 Year 2 Payment = $300 Year 3…
Q: Below are two potential investment alternatives: Initial capital investment…
A: Net Present Value(NPV) refers to one of the concepts from the modern techniques of capital budgeting…
Q: The quick ratio is equal to Plugging in the relevant values for current assets, current liabilities,…
A: Ratio analysis is a quantitative method to know the liquidity, operational efficiency, and…
Q: The constant growth model: i. Assumes that dividend income will increase at a consistent rate…
A: The Constant Growth Model is a technique for valuing stocks. It is also known as the Gordon Growth…
Q: What happens when investors rate of return is greater than YTM and coupon rates?
A: The coupon rate of a bond is the annual rate of interest it pays, whereas the yield is the rate of…
Q: [Det Question 18: The following data are obtained from the records of a factory: Sales 4,000 units @…
A: Please see below attached file
Q: A cash flow received in two years is expected to be $10,816 in nominal terms. If the real rate of…
A: Cash flows are the inflows and outflows of cash in the business. Inflows means incoming of cash and…
Q: Analyze and compare the following firms financial ratio results. Which seems to be in a better…
A: The financial ratio refers to the computation of the company’s level of performance compared with…
Q: A businessman wishes to borrow an amount of K4 million for a term of 3 years. The agreed rate of…
A: The loan schedule statement reflects the information related to the principal portion, the interest…
Q: c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 7. If a Neoclassical economist is asked about returns to scale in, he/she would answer that in the…
A: Neoclassical theory: According to the Neoclassical Growth theory, the three components of labor,…
Q: The quick ratio is equal to Plugging in the relevant values for current assets, current liabilities,…
A: Ratio analysis is a quantitative method to know the liquidity, operational efficiency, and…
Q: John paid $25,000 down on a new house and will pay $1000 per month for 30 years. If interest is 8%…
A: Selling Price of the House = Down Payment + Present Value of monthly payments Down Payment = $25000
Q: Your company has 50 million shares trading at a price of $80, and perpetual debt with face value of…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: Dividend Policy The following represents the stockholder's equity account of Security Data Company:…
A: Given, preferred stock R200,000 Common stock R200,000
Q: Keane & Co plc is considering two possible investments. The company requires an Accounting Rate of…
A:
Q: A. Giant Growth Co. is growing fast Dividends are expected to grow at a 20% growth rate for the next…
A: D0 1.40 Growth Rate for 3 years 20% Growth Rate in 4th year 30% Growth Rate After 4th year 7%…
Q: e. Eleanor's business accountant suggests using a reducing balance model of depreciation for the…
A:
Q: n option trader believes that, in the next month or so, trading conditions in an underlying are…
A: The call option and put options gives right to buy or sell the stocks on the maturity at specified…
Q: Problem 3. Mala Prohibita Inc. is evaluating a proposal to acquire a new equipment. The equipment…
A: Net Present Value Net Present Value The NPV approach in capital budgeting helps maximize shareholder…
Q: 4. Thom J.A.M. Company has P80,000 to invest and is considering two different projects, Vlogging and…
A: NPV (net present value) is the method used by the investor for determining the difference between…
Q: A Brazillian coffee exporter has found a market for his coffee to the tune of 1,800,000 Euros. At…
A: Interest rate parity With spot rate (S=in currency ksh per euro), interest rate in Kenya (ik),…
Q: non-dividend paying financial asset has a price of $200 and a oneyear future on this asset has price…
A: Arbitrage is risk less profit that can be earned in two markets due to mispricing in two markets and…
Q: Suppose that $30,000 is invested at 9% interest. Find the amount of money in the account after 7…
A: Future value of money is amount being deposited and amount of compounded interest accumulated over…
Q: a) Discuss the rationale and the implications of ring-fencing regulation in the UK banking industry
A: From January 2019 all large banks in UK are required to separate their core retail banking services…
Q: D6) Since funds must keep flowing for a country to remain economically viable, briefly explain the…
A: Financial markets The place where the purchase and sales of financial securities take place is known…
Q: 1. Your company wants to bring outdoor ice-skating to Palm Springs, California and must choose…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On the news, LinkedIn's market capitalization increased to nearly $26 billion, while Microsoft's…
A: The question requires us to look into the reasons for drop in market capitalization of Microsoft…
Q: If inflation has been running at 2.85% per year and a new car costs $31,400 today, what would it…
A: Rate of inflation per year is 2.85% Cost of Car today "Future Value" is $31,400 Time period is 3…
Q: 14. Risk free asset, the market, and stock X have the expected returns of 2%, 8%, and 12%…
A: The expected rate of return of the stock based on the risk involved in the stock is given by the…
Q: Find the effective annual rate associated with an 8% nominal rate when interest rate is compounded…
A: The effective annual rate is referred to as the true interest rate on any interest-paying investment…
Q: Find the compound amount and the amount of interest earned by the following deposit. $4,000 at 7.87%…
A: An interest is referred as an amount from the borrower or the deposit taking banks or the financial…
Q: What is the break-even stock price for the protective put?
A: A protective put is when an investor has bought (long) the underlying asset and at the same time…
Q: onsider the pricing of a futures contract on copper. What would you expect to happen if storage…
A: Future contracts are to be settled after some period of time but they derive their value from the…
Q: explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873…
A: Ratio analysis is a quantitative method to know the liquidity, operational efficiency, and…
Q: A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank…
A: Compound interest is one of the ways that money invested earns interest. In compound interest, the…
Q: You invest in a project that will produce real cash flows of -$100 in year zero and then $35, $50,…
A: Net present value(NPV) of a project is calculated using following equation NPV = -CF0 + CF1/(1+d)1…
Q: required a 20% compensating balance for outstanding loans. If excess cash can be reinvested at 9%…
A: Please see below attached file
Q: Chooanne D' Sexy invested in a four-year project and expect a rate of return of 10%. Information…
A: NPV is calculated as below - NPV = present value of all future cash inflows - present value of all…
Q: A local pension scheme collects contributions from its members each year end. The planned collection…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: - a future market transaction - a secondary market transaction -it is primary market transaction…
A: A security market is a place where security( stock and bond) is traded. Here price of the security…
Q: What is the profitability index for an investment with the following cash flows given a 20 percent…
A: The Profitability Index(PI) is one of the capital budgeting techniques that take into consideration…
Q: The maximum loss a buyer of a stock call option can suffer is equal to A. the striking price…
A: The buyer of a call option has a long position. The buyer pays a premium to buy the call options.…
Q: Dani Rojas deposited P50,000.00 in the Bank of Yara which offers 12% interest compounded bi-monthly.…
A: The future value is useful to investors and financial planners, as they use it to estimate how much…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?A manufacturer has a monthly fixed cost of $87,500 and a production cost of $15 for each unit produced. The product sells for $20/unit. (a) What is the cost function? CX) (b) What is the revenue function? R(x) - (c) What is the profit function? Px) - (d) Compute the profit (loss) corresponding to production levels of 15,000 and 20,000 units. (Input a negative value to indicate a loss) PL1S,000)- P(20,000) =The total revenue function for a product is given by R=805 x dollars, and the total cost function for this same product is given by c=24500+70x+x square, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 26 units are produced and sold? c. What is the profit when 40 units are produced and sold? d. How many units must be sold to break even on this product?
- Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profita) Compute the breakeven sales dollars of cach product assuming the same sales mix remains constant. b) Prepare an analysis showing whether Product Z should be eliminated. The amount of change to net income should be computed. c) Assume the current demand of cach product is same as the sales volume the company has for the year. Below is the machine processing time required for cach product. Product Machine processing time in hours i. How many units should the company produce for each product if there is a constraint of only 24.000 hours of machine processing time in the year. ii. Compute the highest possible net income camed by the company. 3 2 An accountant has prepared the folowing product-line income statement for the year: Product Tatal No of mts sokd 5,000 4,000 4,000 Saks Varible enpermes 200,000 S 120,000 100,000 S 60.000 40,000 S 20,000 60,000 40,000 20,000 Cotribution mangin 80,000 40,000 20,000 Fihed expenses Rert Depreciin 10,000 12,000 8,000 5.000 6,000 2,000 2,400 3,000…For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…
- Profit Functions A company has a fixed cost of $26,000 and a production cost of $5 for each unit it manufactures. A unit sells for $10. Find the following functions (in dollars). (a) What is the cost function? C(x) = (b) What is the revenue function? R(x) = (c) What is the profit function? P(x) = (d) Compute the profit (loss), in dollars, corresponding to the following production levels. P(5,500) =$ P(8,800) =$ P(12,100) =$A company produces and sells a product. The company has found that the costto produce x units of the product is given by C(x) = 50x + 200 (in dollars),and the revenue from selling x units is given by R(x) = 100x - x? (in dollars).What is the number of units the company should produce and sell to maximize profitSuppose a company has fixed costs of $47,600 and variable cost per unit of ². +222 dollars, where x is the total number of dollars per unit. units produced. Suppose further that the selling price of its product is 1656- (a) Find the break-even points. (Enter your answers as a comma-separated list.) x= (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) Find maximum profit. (d) What price will maximize the profit? (Round your answer to the nearest cent.)
- Many times the selling price of a product p, is related to demand D, according to the relationship p=a - bD. However, a company has found that the price of their product can be related to demand (in units per year) according to the following equation: p=108.5 – 2.08D⁰.75. In addition, there is a fixed cost of P50,000 per year and the variable cost tomanufacture the product is P68 per unit. What is the level of demand which maximizes sales? What is the maximum sales? What level of demand maximizes profit? What is the maximum profit? What are the breakeven quantities of this product if p=678.39-1.08D?A firm manufactures a product that sells for $25 per unit. Variable cost per unit is $2 and fixed cost per period is $1840. Capacity per period is 2000 units. (a) Develop an algebraic statement for the revenue function and the cost function. (b) Determine the number of units required to be sold to break even. (c) Compute the break-even point as a percent of capacity. (d) Compute the break-even point in sales dollars.P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30; Fixed Cost: $135,000 Expected Sales: 20,000 units. a. What is the breakeven point in sales dollars? b. What is the break-even point in units? c. Calculate the expected profit.