Calculate the ROE for Smith Manufacturing if they have: ⚫ Profit Margin = 5.8% Total Asset Turnover = 1.45 Equity Multiplier = 1.62
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- Adams Inc. has the following data, rRF = 5%, RPm = 6% and Beta = 1.05. What is the firms cost of common from reinvested earning using CAPM? (11.30%, 12.72%, 11.64%, 11.99%, and 12.35%)For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…R (X) = 55x and C (x) = 30x + 250 for total revenue and total cost functions a-) profit function pi (x) for firms and b-) Find the breakeven point.
- Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$A company produces and sells a product. The company has found that the costto produce x units of the product is given by C(x) = 50x + 200 (in dollars),and the revenue from selling x units is given by R(x) = 100x - x? (in dollars).What is the number of units the company should produce and sell to maximize profit4. A company estimates that its profit can be represented by the equation + 50x where P is the profit and x represent the units to sell. -X² P = 2 5 Determine the following: a. The maximum profit. b. The break-even quantity.
- Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fansCalculate the residual income with the following data: • Controllable margin $392,413 • Minimum Rate of Return 13% • Average Operating Assets $2,026,701 Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.Cost, revenue, and profit are in dollars and x is the number of units. If the total profit function is P(x) = 3x – 18, find the marginal profit MP. MP = What does this mean? O This is the total cost. O The next unit sold costs this much to make. O This is the total revenue. O The next unit sold earns this much profit. O This is the total profit.
- Solve the quantitative analysis problembelow: Formulas: BEP : Fixed cost / (selling price per unit)-(variable cost per unit) : f / s - v profit : sX - f - vX (selling price per unit)(number of units sold) - [fixed cost + ( variable costs per unit)(number of units sold)] Jacob&Zach Co is a company that offers financial advice for people want to plan their retirement ahead of time. This company offers seminars and trainings on important topics related to retirement planning. For every seminar, the company rents a conference hall for P5,000.00. The company also spends a total of P7,500.00 to cover the cost of advertising and other expenses related to the conduct of the seminar. In every seminar, the company gives token to all attendees and each token costs P85.00. Lastly, the companycharges P350.00 per person who wants to attend seminar. Questions:1.) How many people should attend the seminar to break-even? 2.) Given this BEP number, how much is the a. revenue?b.…Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest tenth of a percent.)If a company’s variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? a. P = .2/FC b. P = FC/.2 c. P = .27/FC d. P = FC/.27