A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made?

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The rate of profit is calculated by dividing the total profit by the value of the capital goods owned by a company:

r=R/K

In turn, the total profit R can be calculated using the following formula:

R=P_zZ – P_mM – wH

where P_zZ is total sales, P_mM is the cost of materials, and wH is the total wages and benefits paid by the company to its employees.

r=(P_zZ – P_mM – wH)/K

P_zZ = rK + P_mM + wH

P_zZ=0,1*100,000+100,000+15*1000*10=$260,000

Total sales are $260,000, and the total profit made is 0,1*100,000=$10,000.

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Academic.Tips. (2021) 'A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made'. 18 September.

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Academic.Tips. (2021, September 18). A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made? https://academic.tips/question/a-company-has-a-profit-rate-of-10-the-value-of-its-capital-goods-machinery-is-100000-which-was-entirely-used-up-over-the-year-its-10-workers-were-paid-15-an-hour-and-each-did-1000-hours-of-wo/

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Academic.Tips. 2021. "A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made?" September 18, 2021. https://academic.tips/question/a-company-has-a-profit-rate-of-10-the-value-of-its-capital-goods-machinery-is-100000-which-was-entirely-used-up-over-the-year-its-10-workers-were-paid-15-an-hour-and-each-did-1000-hours-of-wo/.

1. Academic.Tips. "A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made?" September 18, 2021. https://academic.tips/question/a-company-has-a-profit-rate-of-10-the-value-of-its-capital-goods-machinery-is-100000-which-was-entirely-used-up-over-the-year-its-10-workers-were-paid-15-an-hour-and-each-did-1000-hours-of-wo/.

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Academic.Tips. "A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made?" September 18, 2021. https://academic.tips/question/a-company-has-a-profit-rate-of-10-the-value-of-its-capital-goods-machinery-is-100000-which-was-entirely-used-up-over-the-year-its-10-workers-were-paid-15-an-hour-and-each-did-1000-hours-of-wo/.

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"A company has a profit rate of 10%. The value of its capital goods (machinery) is $100,000, which was entirely used up over the year. Its 10 workers were paid $15 an hour, and each did 1000 hours of work during the year. What were the total sales of this company? What is the total profit made?" Academic.Tips, 18 Sept. 2021, academic.tips/question/a-company-has-a-profit-rate-of-10-the-value-of-its-capital-goods-machinery-is-100000-which-was-entirely-used-up-over-the-year-its-10-workers-were-paid-15-an-hour-and-each-did-1000-hours-of-wo/.

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