(market size) of all of your compettors in 2ear. You have henand report showed t
ID: 1131547 • Letter: #
Question
(market size) of all of your compettors in 2ear. You have henand report showed that the market is growing a company's operating market size for 2012 and 2013 respectively. In year 2010, Your Company has wo R Dinams, A market study ryear, You have estimated that your zu1u were UO MIIOn t 10A revenues during 2011will be1%of the market size, thenwand 7% of the purchased equipment worth 1 Million dirham's taken froma oan shows that the pay off the bank debt is in two years equal end of year s in year 2012 with an effective interest rate otse% per year. You plan to use the equipment for 7 years, end of the useful life with no yalue new equipment may cause Fill in the table below which gives total market size and summarizes Assume that the manufacturing cost is 50% expensesare 40% of the total operating depreciating it in year 2011, and then discard them by the market yalue. lgnore any reduction in manufacturing costs that the data of your compány. total operating revenues and operating of the revenues. (10 points) 9.312 in millions Dirhams Manufacturing cost,in million Dirhams Gross Profit, in million Dirhams eS^ million Dirhams |I Loan repayments, in million Dirhams in million Dirhams NetExplanation / Answer
Let us start solving this question. You can match your answer with mine.
Notes
Gross Profit = Operating Revenue - Manufacturing Cost
Net Profit = Gross Profit - Depreciation - Interest on Loan Repayment.
Loan repayment would be same as you did.
Most of your answer is correct.
Do ask if any doubt's
Best of Luck ! Keep Checking !
2011 2012 2013 Market Size in Million Dirham's 110 121 133.1 Operating Revenue in million Dirham's 1.1 6.05 9.31 Manufacturing Cost in Million Dirhams 0.55 3.025 4.655 Gross Profit in Million Dirhams 0.55 3.025 4.655 Depreciation in Million Dirhams 142857.1 142857.1 142857.1 Loan Repayment in Million Dirhams 662705 662704 Net Profit in Million Dirhams 407142.9 2777142.9 4407142.9Related Questions
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