A firm has a cost function C(x)=10x+107, where x represents the number of units produced. the firm's revenue function is R(x)=38x if x is equal to 78 find the firm's profit. round to the nearest whole number
Q: kara is ordained minister and church provides her housing allowance which she spends to rent her…
A: It is a problem statement that wants to identify the tax treatment of housing allowance given by the…
Q: Q1- Omer purchase a new equipment to be used in his recently established factory. If the equipment…
A: Note:Since you have posted multiple questions, we will provide the solution only to the first…
Q: NoRagrets, Inc is expected to pay a dividend in year 1 of $2 and a dividend in year 2 of $2.40.…
A: Given information,Dividend in year 1: Dividend in year 2: Rate of return: Growth rate: To…
Q: Paladin Furnishings generated $4 million in sales during 2021, and its year-end total assets were…
A: Sales=$4,000,000Retention ratio=50%Profit Margin=6%Total year-end Assets=2,800,000Accounts…
Q: A new process for a manufacturing process will have a first cost of $45,000 with annual costs of…
A: Discounted payback period is an important capital budgeting tool. Here we firstly discount all the…
Q: Five years ago, you saved $5,000 in bank A that pays a compounding interest rate. You also saved…
A: Compound interest refers to the method of interest calculation where the interest earned in a period…
Q: Consider a three-bond portfolio as follows. Interest is compounded semiannually, and coupons are…
A: YTM of the portfolio is weighted YTM of the bonds in the portfolio based on the market value of the…
Q: In the absence of market imperfections and taxes, stock repurchases are same as cash dividends. How…
A: Two common ways companies distribute profits to their shareholders are through cash dividends and…
Q: Provide strategies you can suggest that may assist in maximizing the age pension entitlement.
A: Retirement planning" is the process of preparing financially for a comfortable and secure…
Q: Case 1 – X has extra money and she is planning to buy certain income-earning assets to help her earn…
A: In the short term liquidity is more important and here also safety of money is also very important…
Q: You are deciding between two mutually exclusive investment opportunities. Both require the sa…
A: IRR (Internal rate of return) is the rate at which present the value of cash inflows is equal to…
Q: Greta has risk aversion of A = 4 and a 1-year investment horizon. She is pondering two portfolios,…
A: Here, Expected ReturnStandard DeviationRisk Premium of S&P 5007.00%18%Risk Premium of Hedge…
Q: n to start saving for your son’s university education. He will begin university when he turns 18 and…
A: There is a need for planning for the future requirements of the money and proper planning should be…
Q: (Common stock valuation) Wayne, Inc.'s outstanding common stock is currently selling in the market…
A: We will use the dividend discount model to solve this question. The dividend discount model states…
Q: A government is considering paving a highway with a newly developed "wear-proof" material. Paving…
A: Net present value is the difference between the present value of cash flow and initial investment in…
Q: Stanley Jaffe and Sherry Lansing have just purchased the rights to Corporate Finance: The Motion…
A: We will use the capital budgeting tools of NPV and IRR here.NPV is the sum of present values of all…
Q: a. What is the value of an investment that pays $15,000 every other year forever, if the first…
A: The PV of an investment refers to the combined worth of the cash flows of the investment which are…
Q: Nielson Motors (NM) has no debt. Its assets will be worth $600 million in one year if the economy is…
A: The expected return is the estimation of profit or loss that an investor determine from his…
Q: For each of the following, compute the present value (Do not round intermediate calculations and…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…
Q: Time value Personal Finance Problem As part of your financial planning, you wish to purchase a new…
A: TVM refers to the concept where money earned earlier is considered more valuable than the same…
Q: Assume contunious compounding and continuous payments for the following problem. Suppose you charge…
A: The time value of money (TVM) is a fundamental financial concept that reflects the idea that a sum…
Q: Lead arrangers typically invite a number of banks to participate in the syndicate by way of booking…
A: In project finance, the syndication process involves a lead arranger (or a group of lead arrangers)…
Q: (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and…
A: Variables in the question: FV=$2.4 millionN=35 yearsRate=7% (annually)
Q: 8.8 Stock Splits 1. Victor owned 240 shares of a stock before the corporation instituted a 7-for-4…
A: Stock-split refers to an increase in the no of shares by allotting the split shares to the…
Q: Someone in the 36 percent tax bracket can earn 8 percent annually on her investments in a tax-exempt…
A: Here,One Time Invetsment is $13,000Tax Rate is 36%Interest Rate is 8%
Q: Consider the three stocks in the following table. Pt represents price at time 1, and Q represents…
A: A price-weighted index is a type of stock market index where the individual components are weighted…
Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…
A: We can solve questions a and b using the FV of annuity formula below. In question a we need to…
Q: Your firm spends $498,000 per year in regular maintenance of its equipment. Due to the economic…
A: IRR refers to the internal rate of return at which the net present value is zero. It is the…
Q: etermine the annual net cost of these checking accounts. A "-" sign must precede any negative net…
A: Any one opens an account with a bank then charges are paid based on the type of account and amount…
Q: Exercise 1: If you know that Hind has a weekly income of 52 riyals and can spend the entire income…
A: The problem focuses on identifying the optimal conditions for maximizing the utility for the person.…
Q: Insurance contracts are aleatory contracts, which is a "take it or leave it" contract. The insured…
A: Aleatory contract- Insurance contracts are aleatory contracts, meaning that the policy does not…
Q: Chloe Jones has determined the following information about her own financial situation. Her checking…
A: Checking account balance=$850Saving Account=$1,200Market value of…
Q: Beryl's Iced Tea currently rents a bottling machine for $50,000 per year, including all maintenance…
A: We have to calculate the Free cash flow ( FCF ) of each case and then calculate the NPV ( net…
Q: Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's…
A: Variables in the question:Rebate on minivan=$2000Increase in sales due to rebate=54700 -…
Q: 1. Present Value (PV Enter the interest rate in the highlighted cell below. Use the cash flows below…
A: Present value is the current date value of all future cash flows discounted over a period of…
Q: The future value and present value equations also help in finding the interest rate and the number…
A: Given information,Present value:Future value: NPER: yearsTo calculate,the rate of investment
Q: Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: The following table provides selected financial information for eBay Inc. for its fiscal years 2016…
A: Altman's Z-Score model is a numerical measurement that is used to predict the chances of a business…
Q: Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has…
A: PR or Annual Percentage Rate is defined as the annual interest, which is generated through sums that…
Q: Ceylon Coffee Vendors PLC is a company that installs and supplies coffee vending machines in…
A: Calculation used to evaluate the investment and financing decisions that involve cash flows…
Q: 1.2 (4) The Treasury 5s of February 15, 2032, which was issued on February 15, is purchased on May…
A: Treasury are issued by the federal central bank to keep liquidity in the market and issued based on…
Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has…
A: Debt to capital ratio formula:-Debt to capital ratio = * 100Total capital = total debt value +…
Q: ne year ago, your company purchased a machine used in manufacturing for $115.000. You have learned…
A: NPV is the most important method of project selection and can be found as the difference between…
Q: nsider two put options on different stocks. The table below reports the relevant information for…
A: Put option is derivative product that derives value from underlying assets and gives the option the…
Q: Terry Austin is 30 years old and is saving for her retirement. She is planning on making 37…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: An investment scheme has outlined its returns for each of the last five years as being -5%, 13%,…
A: Standard deviation is the measure of the deviation from the mean and is the measure of the risk of…
Q: (Related to Checkpoint 10.1) (Common stock valuation) Header Motor, Inc., "paid a $3.27 dividend…
A: When the company receives profits and distributes them among the shareholders. That share of profit…
Q: You are saving for retirement. To live comfortably, you decide you will need to save $3,000,000 by…
A: When a person stops working actively or full-time in a company or a department, it is called…
Q: Valiant Corp. pays a dividend of $2.5 per share and is expected to pay this amount indefinitely. If…
A: An important financial term is the cost of capital, this shows the costs a business must pay to…
Q: Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10…
A: ($ in millions)Addition to retained earnings = $32,902Net income = $69,605The retention ratio for…
A firm has a cost function C(x)=10x+107, where x represents the number of units produced. the firm's revenue function is R(x)=38x
if x is equal to 78 find the firm's profit.
round to the nearest whole number
Step by step
Solved in 3 steps
- If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7Suppose you are analyzing a firm that is successfully executing a strategy that differentiates its products from those of its competitors. Because of this strategy, you project that next year the firm will generate 6.0% revenue growth from price increases and 3.0% revenue growth from sales volume increases. Assume that the firms production cost structure involves strictly variable costs. (That is, the cost to produce each unit of product remains the same.) Should you project that the firms gross profit will increase next year? If you project that the gross profit will increase, is the increase a result of volume growth, price growth, or both? Should you project that the firms gross profit margin (gross profit divided by sales) will increase next year? If you project that the gross profit margin will increase, is the increase a result of volume growth, price growth, or both?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…
- 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 profita. Given the following graphs, calculate the total fixed costs, variable costs per unit, andsales price for Firm A. Firm B’s fixed costs are $120,000, its variable costs per unit are$4, and its sales price is $8 per unit.b. Which firm has the higher operating leverage at any given level of sales? Explain.c. At what sales level, in units, do both firms earn the same operating profit?a.Explain why contribution margin per unit becomes profit per unit above the break-even point b. If the contribution margin per unit is $7 and the break-even point is 10,000 units, how much profit will a firm make if 15,000 units are sold? c.What is the variable cost ratio? The contribution margin ratio? How are the two ratios related?
- Once a company exceeds its breakeven level, operating income can be calculated by multiplying: a. The sales price by unit sales in excess of breakeven units. b. Unit sales by the difference between the sales price and fixed cost per unit. c. The contribution margin ratio by the difference between unit sales and breakeven sales. d. The contribution margin per unit by the difference between unit sales and breakeven sales.The cost equation of YTS Inc. is y = 35x + 400,000. y is the profit, 35 is the contribution margin per unit, x is the number of units sold, and 400,000 is the total fixed cost. What is the total units to be sold to arrive a profit of 146,000?If a company’s variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? a. P = .2/FC b. P = FC/.2 c. P = .27/FC d. P = FC/.27
- A firm presently has total sales of P100,000. If its sales rise, its A. net income based on variable costing will go up more than its net income based on absorption costing. B. net income based on absorption costing will go up more than its net income based on variable costing. C. fixed costs will also rise. D. per unit variable costs will riseA company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution margin of 40% . A. What are fixed costs? Why? How? B. What are variable costs per units? Why? How? C. What are sales in units? D. What are sales in dollars? Why? How?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?