ECON 600 Lecture 3: Profit Maximization I. The Concept of Profit Maximization Profit is defined as total revenue minus total cost. Π = TR – TC (We use Π to stand for profit because we use P for something else: price.) Total revenue simply means the total amount of money that the firm receives from sales of its product or other sources. Total cost means the cost of all factors of production. But – and this is crucial – we have to think in terms of opportunity cost‚ not just explicit
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net profit by 2015. The goal can be reached ONLY by changing and adapting the menu to a vegetarian one. Some loyal customers will be lost‚ because the veal cutlet sandwich will basically disappear from the menu by 2015. Nevertheless contribution margin is increased by giving advantage to products that have more contribution margin per limited resource. Analysis shows that vegetarian sandwiches are the future key success factors for the restaurants. Livoria cannot reach the 1.1M in net profit unless
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29‚ 2012 Martha Nussbaum: “Not for Profit: Why Democracy Needs the Humanities” Martha C. Nussbaum is the author of the book‚ “Not For Profit: Why Democracy Needs the Humanities.” The book begins by drawing the reader’s attention by explaining the “Silent Crisis.” She describes education in the eyes of the government‚ and in the eyes of the people. There is a connection made between education and the liberal arts. The title of the book‚ “Not For Profit‚” are three simple words that when put
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Title: What is the effect of different fat percentages in milk on the mass of curds produced? Purpose: The purpose of the experiment was to determine if the percentage of fats and proteins in different types of milk would affect the mass of curds produced. Background Information: In different types of milk there is a variety in percentages of fat and slightly different percentages of protein. For example‚ in one cup of skim milk there is approximately 8.3 grams of protein‚ while in one cup of whole
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Percent-of-Sales Method The percent-of-sales method is a technique for forecasting financial data. When forecasting financial data for strategic planning‚ budgeting‚ or for developing pro forma financial statements‚ analysts can use the percent-of-sales method of forecasting to create reasonable projections for certain key data. The idea is to see how a financial statement account item relates historically to sales figures‚ and then to use that relationship to project the value of those financial
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Profit vs. Not-for-Profit Organization A nonprofit organization is formed for the common good of the public. Nonprofit organizations are usually formed for some specific religious‚ charitable or educational purpose. A for-profit organization may be formed to conduct any number of lawful business activities. The primary reason to form a for-profit organization is to earn a profit for the owners of the company. Use of Profits Since a not-for-profit organization is formed to accomplish a specific
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pays the men off to simply look the other way. She then begins to question how these women will ever receive justice for the wrong doing of Mumtaz and the numerous men that participated in the Happiness House. At the end of Sold‚ McCormick does not give an explanation as to what happens to Lakshmi and the other girls after the police invade the Happiness House. The author does this because in the majority of cases of sex trafficking the girls do not receive a new slate and the men and traffickers do
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Which one of the following statements is correct concerning annual percentages rates (APRs)? Answer: The APR is equal to the monthly interest rate multiplied by 12 Give an interest rate of zero percent‚ the future value of a lump sum invested today will always: Answer: remain constant Answer: II and IV A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a: corporation The capital structure of a firm refers to the
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Annex Initial margin and haircut Calculating a margin call 2.1 where the collateral is subject to an initial margin 2.2 where the collateral is subject to a haircut What transactions are included in the calculation of Net Exposure? 3.1 general rule 3.2 forward repos What price is used to value collateral? How often should Net Exposure be calculated and margin called? Margin thresholds and minimum transfer amounts What is the deadline for making a margin call? Where margin is given in the
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Non-Profit vs. For-Profit The main difference between non-profit and for profit healthcare organizations are; Non-profit hospitals don’t need to pay property‚ sales or income taxes and receive grants from the government and through donations. They were designed to provide discounted fees for service or no fee to those in the surrounding communities with limited to no funds for healthcare‚ basically the poor or those who fall within the guidelines of those below poverty level. The tax exemptions
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