- 10 Marks
QTB – May 2016 – L1 – SB – Q1a – Mathematics
Calculate profit in year 5 for new product with given growth rates for units produced, selling price, and production costs.
Question
A company plans to introduce a new product into the market. 6,000 units are to be produced in the first year with an annual growth rate of 3.5%. Selling price is to be set at N1,050 per year with an annual growth rate of 6.5%.
Required:
If the production costs are to be pegged at N850 in the first year with an annual growth rate of 5%, calculate the profit earned in year 5.
Find Related Questions by Tags, levels, etc.
- Tags: Business Finance, Compound Growth, Profit Calculation
- Level: Level 1
- Topic: Mathematics
- Series: MAY 2016
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