Assume that GTB Petroleum Corporation, a U.S. company, is involved in petroleumoperations in Gabon. The production sharing contract it signed with governmentprovides the following:1. Royalty 15%2. Cost oil 40%3. Profit oil split 80% to Govemment and 20% to the Contractor4. Oil price $22Based on the above information, you are required to answer the following questions:1. What is the total profit?a. $11.22b. $13.20c. $18.70d. $9.902. The division of profit ($) is:a. $11.22 government; $1.98 contractorb. $7.92 government; $1.98 contractorc. $11.22 government; $10.78 contractord. $14.96 government; $3.74 contractor3. What is the division of profit in percentage (%)?a. 80% government; 20% contractorb. 51% government; 49% contractorc. 60% government; 40% contractord. 85% government; 15% contractor4. The split of the barrel in dollars ($) is:a. $11.22 government; $1.98 contractorb. $7.92 govemment; $1.98 contractorc. $11.22 government; $10.78 contractord. $14.96 government; $3.74 contractor5. The profit oil is shareda. $11.22 government; $1.98 contractorb. $7.92 government; $1.98 contractorc. $11.22 government; $10.78 contractord. $14.96 government; $3.74 contractor

To answer these questions, let's break down the problem step by step using the given…

Answered: Assume that GTB Petroleum Corporation,…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

See similar textbooks

Similar questions

Help Save Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Unregulated Subsidiary Regulated Subsidiary Total $ 650,000 N/A revenue $ 350,000 $300,000 $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ (b) The regulated subsidiary? profit = $ & 23 24 8. *00 w/ %S4
RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 2/5 ton of material 1 and 3/5 ton of material 3. A ton of solvent base is a mixture of ½ ton of material 1, 1/5 ton of material 2, and 3/10 ton of, material 3. After deducting relevant costs, the profit contribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent base produced. RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has 20 tons of material 1, 5 tons of material 2, and 21 tons of material 3 that are available for production. Assuming that RMC is interested in maximizing the total profit contribution, answer the following: a. Find the optimal solution. How many tons of each product should be produced, and what…
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
How would you approach this issue if you were the manager in charge of sourcing raw materials for LEGO? How would PESTEL analysis inform your actions? What PESTEL challenges is LEGO trying to address by changing the raw materials used in its products? Explain what favorable PESTEL factors support LEGO’s efforts. for the lego project
Sub-part to be solved iv) what charge should the company charge to maximize revenue? v)What price should the company charge to earn at least$3500 in revenue?
The table below displays the cost and output per week (in EUR) of the company «Creativia» which produces community textile face masks. Total Product Quantity Total variable costs, Euro 0 0 250 350 450 450 650 600 750 750 800 950 830 1300 850 1800 Assume the price is EUR 4,00 and is constant at any quantity, Calculate the profit at the profit-maximizing output and show the area of profit on the graph. Determine below what price would the firm exit the market in the long run. Explain your answer.
Solve all this question compulsory.....
Systems applicationSolve and analyze the following problems. Make sure all the steps are properly justified. Correctly use mathematical notation or terminology. Interpret the solution in the context of the problem.Suppose the supply and demand equations for printed shirts for a graduating class are given byp = 0.7q + 3p = -1.7q +15where p is the price in dollars and q is the quantity in hundreds.Determine supply and demand if the shirts cost $ 9.00. Analyze and discuss the stability of the shirt market at this price level. Prepare the graph of the two equations in the same coordinate system and identify the equilibrium point, the supply curve, and the demand curve.
1.ABX Company concluded a transaction at USD 50 per case FOB Kobe. The British counterpart asked for CIF London price. Suppose the measurement of each case was 45cm*40cm*25 cm and gross weight for each case was 35kg. Freight basis was W/M and the carriage was USD120 per case, plus 20% Additional on Direct and 10% Port Surcharge. Insurance rate was 0. 5% and markup rate was 10%. What would be the CIF price?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
I need help with question 4 and 5 so if you could please explain to me how this needs to be done.
Question 4. Please help with a & b. Thank you

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Economics: Applications, Strategies an…

Economics

ISBN:

9781305506381

Author:

James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:

Cengage Learning