Table 12.5 -Refer to Table 12.5.Dante Owns a Pencil Factory and Faces

question 127

Essay

Table 12.5
-Refer to Table 12.5.Dante owns a pencil factory and faces the situation shown in the table, and the cost of renting a machine is $240 per week.
a.Fill in the blanks in the table and determine the profit-maximising number of machines for Dante to rent.Explain why renting this number of machines is profit maximising.
b.Draw Dante's demand curve for capital.
__________________________________________________________________________________________________________________________________________________________________________________________

---

Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services, before any expenses are subtracted.

Net Sales

The amount of revenue generated from sales activities after returns, allowances, and discounts have been subtracted.

Operating Expenses

Operating expenses are the costs associated with running a business’s core activities on a day-to-day basis, excluding the cost of goods sold.

Sales Revenue

The total amount earned by a company from its sales of goods or services, before any deductions for returned goods and allowances.