All categories

3 years ago

What is the formula to work out profit

1 answer:

7 0

The main feature of this lesson is the equation P(x) = R(x) - C(x). Other important equations to remember are as follows: The breakeven point is when revenue equals cost, or when the profit is zero. Maximum profit will occur when marginal revenue equals marginal cost, or when the marginal profit is zero.

You might be interested in

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting

Tresset [83]

Answer:

under activity-based costing the sum of all product costs does not equal the total costs of the company.

Explanation:

The method of an activity-based costing system can be used use to find the total cost of all the activities that are required to make a product. This system also helps to find out which overhead costs can be avoided.

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because under activity-based costing the sum of all product costs does not equal the total costs of the company.

8 0

3 years ago

a rectangular swimming pool has dimensions 45 metre by 20 metre concrete path of 3.5 m width is laid around it .Find the cost of

Anon25 [30]

Answer:

Rs. 5993.75

Explanation:

The computation of the cost of laying the path is given below:

= {area of(pool +path)- area of pool }

= ((45 + 3.5) × (20 + 3.5)) - (45 × 20)

= (48.5×23.5) - (45 × 20)

= 1139.75 - 900

= 239.75 square meters

Now the cost is

= 239.75 × 25

= Rs. 5993.75

8 0

3 years ago

your firm is contemplating the purchase of a new $545,000 computer-based order entry system. the system will be depreciated stra

liberstina [14]

The IRR of the new computer-based order entry system is 22.87%.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The cash flow at the beginning of the period = purchase price of the system - reduction in working capital

$545,000 - $96,000 = $449,000

Depreciation expense = (cost of the asset - salvage value) / useful life

($545,000 - 0) / 5 = $109,000

Cash flow each year from year 1 to 5 = (amount saved - depreciation)(1 - taxes) + depreciation

($165,000 - $109,00)(1 - 0.22) + $109,000 = $152,680

Terminal cash flow = Salvage value - (tax x salvage value)

$71,000 - (0.22 x 71,000) = $55,380

IRR can be determined using a financial calculator:

Cash flow in year 0 = $-449,000

Cash flow in year 1 - 4= $152,680

Cash flow in year 5 = $152,680 + $55,380 = 208,060

IRR = 22.87%

To learn more about IRR, please check: brainly.com/question/26484024

#SPJ1

3 0

2 years ago

Which is true of output-choice models of oligopoly behavior?

brilliants [131]

B SHOULD BE THE CORRECT

8 0

3 years ago

Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the

ozzi

Answer:

decreased

Explanation:

As we know that there is a negative relationship between the rate of return i.e. required and the price of the stock. That means if the required rate of return rises, than the price of the stock reduced and vice versa

As in the given situation it is mentioned that the required rate of return increase so the price of the stock is decreased

The same is to be considered

5 0

3 years ago