The net profit of the company in this case is given by the subtraction of the income minus the costs.
We have then:
b (t) = r (t) - c (t)
b (t) = 15 * e ^ (0.19 * t) - 12 * e ^ (- 0.03 * t).
We must determine the number of years.
from january 1st in the year 2000 until january 1st in the year 2007:
t = 2007-2000 = 7.
We have then evaluating t = 7 in the function:
b (7) = 15 * e ^ (0.19 * 7) - 12 * e ^ (- 0.03 * 7).
b (7) = 46.99 millions of dollars
answer:
the net profit was 46.99 millions of dollars
Answer:
10.97%
Explanation:
the formula to calculate real rate of return:
real rate of return = [(1 + nominal return) / (1 + inflation rate)] - 1
real rate of return = [(1 + 12.3%) / (1 + 1.2%)] - 1 = (1.123 / 1.012) - 1 = 0.1097 or 10.97%
the risk free rate is not included in the calculation of the real rate of return, but we can also calculate the real risk free rate of return using a similar formula:
real risk free rate of return = [(1 + risk free rate) / (1 + inflation rate)] - 1 = 3.01%
Answer:
Variable cost = $340,200
Fixed cost = $220,000
Explanation:
Given that,
At Predicted production = 24,200 units,
Fixed costs = $220,000
Variable costs = $435,600
Per unit variable cost:
= Variable costs ÷ No. of units produced
= $435,600 ÷ 24,200
= $18 per unit
Total cost at 24,200 units,
= Variable costs + Fixed cost
= $435,600 + $220,000
= $655,600
Total cost at 18,900 units,
= Variable costs + Fixed cost
= ($18 × 18,900) + $220,000
= $340,200 + $220,000
= $560,200
Note: Fixed cost does not changes with the change in the output level.
Answer:
Contribution margin = Total sales - Total variable cost
= $580,000 - $360,000
= $220,000
A CVP income statement would report contribution margin of $220,000
The correct answer is D
Explanation:
CVP income statement usually separate variable cost from fixed cost. In this case, there is need to determine contribution margin, which is the excess of total sales over total variable cost.
The type of externality where market equilibrium quantity produced will be more than socially optimal quantity in absence of governemtn intervention is Negative externality.
Let understand that whenever a production of good or service negatively affect the unrelated third party who is not directly involved in a market transaction, it is said that negative externality exists in the scenario.
A very good example of commonly cited Negative Externalities are air pollution and noise pollution which was caused during production an affects unrelated third party.
If there is presence of government intervention in the production, then, the production of goods or service will be halted.
Therefore, in conclusion, this type of externality is called the Negative Externality.
Read more about Negative Externality here
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