Answer:
Economic profit = $40
Explanation:
given data
producing = 20 units
selling = $10 per unit
total fixed costs = $100
average variable cost = $3
output = 20 units
to find out
economic profit of this corporation
solution
we get here revenue that is express as
revenue = 20 units × $10
revenue = $200
and
now we get variable cost is here as
variable cost = 20 units × $3
variable cost = $60
and
now we get here total cost that is express as
total cost = Fixed cost + Variable cost .............1
total cost = $100 + $60
total cost = $160
so now Economic profit will be
Economic profit = Revenue - Total cost ......................2
Economic profit = $200 - $160
Economic profit = $40
<span>Prefer the 6.1 percent tax-exempt investment.
Let's do the math and see why the tax-exempt investment is the better choice. For the 8.1% taxable investment, you get taxed at the rate of 28%. Which means that you only get to keep 100%-28% = 72% of your gains. So 0.72 * 8.1 = 5.832 which means your effective earning percentage is only 5.832% which is less than the 6.1% rate you get for the tax-exempt investment. Another consideration that wasn't taken into account for the question is the earnings on the taxable investment may push you up into a higher tax bracket. Which in turn increases the tax burden on your other investments. So the better choice here is the 6.1% tax-exempt investment even though that first glance the 8.1% investment looks higher.</span>
Answer:
Average defection rate = 3.9%
Explanation:
Average defection rate is the rate are which customers stop using a companie's products and services.
It could result from move to other competitors.
To calculate use the following formula
Customers per year= Spending per visit* Yearly frequency* Gross margin* (1/Defection rate)
3,200= 60* 52* 0.04*(1/Defection frequency)
Defection frequency (3,200)= 124.80
Defection rate= 124.80/3,200= 0.039= 3.9%
Answer:
$197,263.7
Explanation:
The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,
the interest rate will be -6%
The formula for compound interest is FV = PV × (1+r)^n
in this case
FV= current value
PV= $237,500
r= -6% or -0.06%
n= 3 years
Fv= $237, 500 x ( 1 + (-0.06)^3
Fv=$237,500 x (0.94)^3
Fv= $237,500 x 0.830584
Fv= $197,263.7
The current value =$197,263.7
