Fill in the blanks: The owner of a firm expects to make a profit of Php200,000.00 for each of the next two years and to be able to sell the firm at the end of the second year for Php600,000.00. The owner of the firm believes that the appropriate discount rate for the firm is 15%. What is the value of the firm?
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- Q4 A business manager determines that t months after production begins on a new product, the number of units produced will be P thousand,where P(t) =6?2 + 5? /(? + 1)2 production in the long run (i) A ruptured pipe in a North Sea oil rig produces a circular oil slick that is y meters thick at a distance x meters from the rupture.Turbulence makes it difficult to directly measure the thickness of the slick at the source (where x = 0),but for x > 0,it is found that y =0.5(x2 + 3x)/ x3 + x2 + 4x Required:a)Assuming the oil slick is continuously distributed,how thick would you expect it to be at the source?2.The monthly revenue function for a company is R(x) = x(-0.25x + 7.5x+18.75). The revenue is in thousands of dollars, and x represents thousands of products produced. This revenue model is valid for 0SxS 32. At what rate is the revenue changing when the company produces 4000 of its product? |It is estimated that a grocer’s daily profit from the sale of two brands of cherry juice is given by thefunction:P(x,y) = (x - 30)(70 - 5x + 4y) + (y – 40)(80 + 6x – 7y) centswhere x is the price per can of Brand V Juice and y is the price per can of Brand Triple V Juice. CurrentlyBrand V Juice sells for 50 cents per can and Brand Triple V Juice sells for 52 cents per can.i. Use marginal analysis to estimate the change in the daily profit that will result if the grocer raises theprice of Brand Triple V by one cent per can while keeping the price of Brand V unchanged.ii. Find a stationary point of the daily profit function. Classify this stationary point.
- W7 Q5 A paper published in the Harvard Business Review points out a new way to calculate economic profit that could be more appropriate for service firms and other people-intensive companies. Instead of focusing on investment and return on investment, the focus is on employee productivity, in terms of both generating revenues and reducing costs. The approach is to first determine economic profit in the conventional way, except that we ignore taxes, so that economic profit is before tax, as follows: Economic profit = Operating profit − Capital charge Assume the following information for a hotel chain that wishes to adopt the new method. The firm has $100 million in operating profit, has $1 billion in investment, and uses a cost of capital rate of 5%, so the capital charge is $50 million and the economic profit is $50 million. Relevant calculations are contained in Part 1 of the following schedule: Part 1: Economic Profit (in thousands, except cost of capital rate) Revenue….s) Suppose that a company has fixed costs of 300300 dollars and variable costs of 0.75x+14200.75x+1420 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1550-0.3x1550-0.3x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one. (a) Find the break-even points. The larger number of units at which break- even occurs is , with corresponding revenue dollars. and The smaller number of units at which break- even occurs is , with corresponding revenue dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)PER-UNIT COST (Dollars) Jouet is a profit-maximizing firm producing toy trains-a capital-intensive good-which are sold in its home country, France, and abroad in Russia. Jouet chose foreign production as a method of penetrating the Russian market and has to decide whether it is more efficient to directly invest in ussia to establish a production subsidiary or to license the technology to a Russian firm to produce its goods. n the following graph, AVCR is the average variable cost curve of a Russian firm producing toy trains. (This curve represents costs such as labor nd materials.) The curve ATCsidiary represents the total unit costs Le Jouet will face if it establishes a subsidiary in Russia. ATCudary AVC Russia 15 20 4 60 75 90 105 120 130 150 PRODUCT (Thousands)
- 13. A company finds that it can sell out a certain product that it produces, at the rate of Tk. 2 per unit. It estimates the cost function of the product to be Tk. 100 오 2 50 for q units produced. (i) Find the expression for the total profit, if q units are produced and sold. (ii) Find the number of units produced that will maximize profit. (iii) What is the amount of this maximum profit? (iv)What would be the profit if 6000 units were produced?8. A manufacturer of handcrafted wine racks has found that the cost C and revenue R (in dollars) in one month are related by the equation C = R2 + 12,000. 450,000 Find the rate of change of revenue with respect to time when the cost is changing by $15 per month and the monthly revenue is $25,000.Question 2. Company XYZ produces and sells widgets. Production is done at two separate factories, one in Mississauga and one in Scarborough. An analysis reveals that in the Mississauga location, it costs 1 = 59³+10000 (dollars) 50% to produce q widgets in a month, while in the Scarborough location it costs Cs(q) =q² + 20000 (dollars) СM (9) to produce q widgets in a month. The company needs to fulfill orders for a total of 400 widgets in the month of March 2023. (a) How many widgets should each location be assigned to produce so that the total cost of production is minimized? (b) Due to differences in quality control and shipping costs, company XYZ decides to sell widgets produced at each factory at different price levels: widgets produced in Mississauga are to be sold for $2000 each, and widgets produced in Scarborough for $2800 each. Show that it is most profitable for the company to allocate all production to Scarborough.
- Please no written by hand and no emage Suppose that a company that makes and sells hand-crafted artwork has a cost function C(x) = 24x + 300, where x is the number of items made, and a revenue function R(x) = 45x, where x is the number of items sold. What is the profit from the 28th item made and sold? There is a $ sign listed next to the answer box, so do not type a $ sign in your answer.= 2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co kny3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?Technology B uses 4 workers and 2 tonnes of coal to produce 100 meters of cloth. The worker's wages cost $10 and coal costs $5. We have previously calculated that the total cost of production is $50 and that the vertical intercept of the isocost line is 10.If there was a technology that used 1 more worker, how much would it have to decrease the coal required in order to cost the same? (Note: this is the absolute value of the slope of the isocost line.)