1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
drek231 [11]
3 years ago
8

A car rental agency rents 210 cars per day at a rate of 30 dollars per day. For each 1 dollar increase in the daily rate, 5 fewe

r cars are rented. At what rate should the cars be rented to produce the maximum income, and what is the maximum income
Business
1 answer:
hodyreva [135]3 years ago
8 0

Answer:

$36

$6466

Explanation:

For each 1 dollar increase, 5 fewer cars are rented. If y is added to the daily rate. They will rent 210 - 5y at 30 + y dollars.

Hence 210 - 5y × 30 + y = income.

F(y) = 210 - 5y × 30 + y

F(y) = 6300 + 210y - 150y -5y^2

F(y) = -5y^2 + 60y + 6300

To maximize income, we get the first derivative

F(y) = -5y^2 + 60y + 6300

F'(y) = -10y + 60

-10y + 60 = 0

10y = 60

y = 6

Therefore, the should increase their rate by $6, hence they should charge $36.

To find max income, put 7 into y

F(y) = -5×7^2 + 60×7 + 6300

= -254 + 420 + 6300

= $6466

Max income = $6466

You might be interested in
he most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales 91,200
klio [65]

Answer:

The sustainable Growth Rate is 15.46%

Explanation:

Return on equity= (Net income/Equity Shareholder's Fund) * 100

= ($19,789 / $83,200) * 100

= 23.78%

Payout ratio is 35%.

Therefore, Retention Rate is 65% or 0.65

Sustainable Growth Rate = Return on Equity * Retention Rate

= 23.78% * 0.65 =

= 0.2378 * 0.65

= 0.15457

= 15.46%

Thus, the sustainable Growth Rate is 15.46%

5 0
3 years ago
)An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxablecorporate paying 8.25 percent. What
In-s [12.5K]

Answer: 30.3%

Explanation:

Because taxes are not paid on municipal bond interest, their interest rates are usually lower with the difference accounting for the taxes paid.

For a municipal bond to be similar to a corporate bond, the tax rate must be such that it makes them equal:

Municipal bond return = Corporate bond return * (1  - tax rate)

5.75% = 8.25% * (1 - tax)

1 - tax rate = 5.75% / 8.25%

1 = 0.6969697 + Tax rate

Tax rate = 1 - 0.6969697

= 30.3%

4 0
3 years ago
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's
katrin2010 [14]

Answer:

$50,820

Explanation:

Current Variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative expense

= $43.10 + $8.20 + $1.20 + $2.00 = $54.50 per unit  

Variable cost per unit for special order = $54.50 - $1.30 = $53.20 per unit  

Selling price per unit for special order = $77.40 per unit  

Contribution margin per unit for special order = $77.40 - $53.20 = $24.20 per unit  

Number of units for Special order = 2,100 units  

Monthly financial advantage for special order = $24.20 * 2,100 units = $50,820

Hope this helps!

7 0
4 years ago
Changes in the net working capital requirements: can affect the cash flows of a project every year of the project's life. only a
DIA [1.3K]

Answer:

can affect the cash flows of a project every year of the project's life.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.

Cash flow can be defined as the net amount of cash and cash- equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

Generally, changes in the net working capital requirements can affect the cash flows of a project every year of the project's life.

Mathematically, Net cash flow = Receipts - Total payments

7 0
3 years ago
The period of time before and after an IPO when communication with the public is limited is known as the ______ period.
zalisa [80]

The period of time before and after an initial public offering (IPO) when communication with the public is limited is called the <u>quiet</u> period.

<h3>What is an IPO?</h3>

An IPO is acronym for initial public offering and it can be defined as a process through which a privately owned company (private corporation) list its shares on a stock exchange, in order to make them available for purchase by the general public.

In an initial public offering (IPO), the period of time before and after when communication with the public is limited is called the <u>quiet</u> period.

Read more on IPO here: brainly.com/question/9162694

7 0
2 years ago
Other questions:
  • Which of the following are examples of a firm experiencing positive technological​ change?a. A firm is able to cut each​ worker'
    7·1 answer
  • Perfect competition is characterized by all of the following except A. homogeneous products. B. sellers are price takers. C. hea
    6·1 answer
  • If the government sets a price floor of $5 per bushel, ____ bushels of corn are produced, of which ___ are purchased by consumer
    10·1 answer
  • When slick heating company switched to an activity based costing system, it realized that it was allocating a much lower percent
    7·1 answer
  • The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased mercha
    5·1 answer
  • What is a common misconception about Agile and DevOps?
    14·1 answer
  • . What type of company would you like to create? Why would you like to create this type of company?
    11·1 answer
  • Determine if each of the following plans are short term, long term, or operational
    8·1 answer
  • Courts will not take action against a television show that critiques newly-released books for infringement of copyright because
    13·1 answer
  • A policyowner would like to change the beneficiary on an accidental death and dismemberment (ad&amp;d) insurance policy and make
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!