Answer :
Let's go through each question step-by-step.
### 1. Calculate the company's net profit margin for 2018:
a. Determine the value of [tex]\( x \)[/tex] for 2018.
2018 is 8 years after 2010, so:
[tex]\[ x = 2018 - 2010 = 8 \][/tex]
b. Determine the cost to build homes in 2018.
Using the cost equation [tex]\( C(x) = 0.31x + 4.3 \)[/tex]:
[tex]\[ C(2018) = 0.31 \cdot 8 + 4.3 = 6.78 \text{ million dollars} \][/tex]
c. Determine the revenue for selling the homes in 2018.
Using the revenue equation [tex]\( R(x) = 0.08x + 8 \)[/tex]:
[tex]\[ R(2018) = 0.08 \cdot 8 + 8 = 8.64 \text{ million dollars} \][/tex]
d. Determine the profit made in 2018.
Profit is revenue minus cost:
[tex]\[ \text{Profit} = 8.64 - 6.78 = 1.86 \text{ million dollars} \][/tex]
e. Determine the company's net profit margin for 2018.
Net profit margin is given by:
[tex]\[ \text{Net profit margin} = \frac{\text{Profit}}{\text{Revenue}} = \frac{1.86}{8.64} = 0.2153 \][/tex]
Rounded to four decimal places: [tex]\( 0.2153 \)[/tex] or [tex]\( 21.53\% \)[/tex].
### 2. Calculate the company's net profit margin for 2022:
a. Determine the value of [tex]\( x \)[/tex] for 2022.
2022 is 12 years after 2010, so:
[tex]\[ x = 2022 - 2010 = 12 \][/tex]
b. Determine the cost to build homes in 2022.
Using the cost equation [tex]\( C(x) = 0.31x + 4.3 \)[/tex]:
[tex]\[ C(2022) = 0.31 \cdot 12 + 4.3 = 8.02 \text{ million dollars} \][/tex]
c. Determine the revenue for selling the homes in 2022.
Using the revenue equation [tex]\( R(x) = 0.08x + 8 \)[/tex]:
[tex]\[ R(2022) = 0.08 \cdot 12 + 8 = 8.96 \text{ million dollars} \][/tex]
d. Determine the profit made in 2022.
Profit is revenue minus cost:
[tex]\[ \text{Profit} = 8.96 - 8.02 = 0.94 \text{ million dollars} \][/tex]
e. Determine the company's net profit margin for 2022.
Net profit margin is given by:
[tex]\[ \text{Net profit margin} = \frac{\text{Profit}}{\text{Revenue}} = \frac{0.94}{8.96} = 0.1049 \][/tex]
Rounded to four decimal places: [tex]\( 0.1049 \)[/tex] or [tex]\( 10.49\% \)[/tex].
In summary:
1. 2018 Calculations:
a. [tex]\( x = 8 \)[/tex]
b. Cost = [tex]\( \$ 6.78 \)[/tex] million
c. Revenue = [tex]\( \$ 8.64 \)[/tex] million
d. Profit = [tex]\( \$ 1.86 \)[/tex] million
e. Net Profit Margin = [tex]\( 0.2153 \)[/tex] or [tex]\( 21.53\% \)[/tex]
2. 2022 Calculations:
a. [tex]\( x = 12 \)[/tex]
b. Cost = [tex]\( \$ 8.02 \)[/tex] million
c. Revenue = [tex]\( \$ 8.96 \)[/tex] million
d. Profit = [tex]\( \$ 0.94 \)[/tex] million
e. Net Profit Margin = [tex]\( 0.1049 \)[/tex] or [tex]\( 10.49\% \)[/tex]
### 1. Calculate the company's net profit margin for 2018:
a. Determine the value of [tex]\( x \)[/tex] for 2018.
2018 is 8 years after 2010, so:
[tex]\[ x = 2018 - 2010 = 8 \][/tex]
b. Determine the cost to build homes in 2018.
Using the cost equation [tex]\( C(x) = 0.31x + 4.3 \)[/tex]:
[tex]\[ C(2018) = 0.31 \cdot 8 + 4.3 = 6.78 \text{ million dollars} \][/tex]
c. Determine the revenue for selling the homes in 2018.
Using the revenue equation [tex]\( R(x) = 0.08x + 8 \)[/tex]:
[tex]\[ R(2018) = 0.08 \cdot 8 + 8 = 8.64 \text{ million dollars} \][/tex]
d. Determine the profit made in 2018.
Profit is revenue minus cost:
[tex]\[ \text{Profit} = 8.64 - 6.78 = 1.86 \text{ million dollars} \][/tex]
e. Determine the company's net profit margin for 2018.
Net profit margin is given by:
[tex]\[ \text{Net profit margin} = \frac{\text{Profit}}{\text{Revenue}} = \frac{1.86}{8.64} = 0.2153 \][/tex]
Rounded to four decimal places: [tex]\( 0.2153 \)[/tex] or [tex]\( 21.53\% \)[/tex].
### 2. Calculate the company's net profit margin for 2022:
a. Determine the value of [tex]\( x \)[/tex] for 2022.
2022 is 12 years after 2010, so:
[tex]\[ x = 2022 - 2010 = 12 \][/tex]
b. Determine the cost to build homes in 2022.
Using the cost equation [tex]\( C(x) = 0.31x + 4.3 \)[/tex]:
[tex]\[ C(2022) = 0.31 \cdot 12 + 4.3 = 8.02 \text{ million dollars} \][/tex]
c. Determine the revenue for selling the homes in 2022.
Using the revenue equation [tex]\( R(x) = 0.08x + 8 \)[/tex]:
[tex]\[ R(2022) = 0.08 \cdot 12 + 8 = 8.96 \text{ million dollars} \][/tex]
d. Determine the profit made in 2022.
Profit is revenue minus cost:
[tex]\[ \text{Profit} = 8.96 - 8.02 = 0.94 \text{ million dollars} \][/tex]
e. Determine the company's net profit margin for 2022.
Net profit margin is given by:
[tex]\[ \text{Net profit margin} = \frac{\text{Profit}}{\text{Revenue}} = \frac{0.94}{8.96} = 0.1049 \][/tex]
Rounded to four decimal places: [tex]\( 0.1049 \)[/tex] or [tex]\( 10.49\% \)[/tex].
In summary:
1. 2018 Calculations:
a. [tex]\( x = 8 \)[/tex]
b. Cost = [tex]\( \$ 6.78 \)[/tex] million
c. Revenue = [tex]\( \$ 8.64 \)[/tex] million
d. Profit = [tex]\( \$ 1.86 \)[/tex] million
e. Net Profit Margin = [tex]\( 0.2153 \)[/tex] or [tex]\( 21.53\% \)[/tex]
2. 2022 Calculations:
a. [tex]\( x = 12 \)[/tex]
b. Cost = [tex]\( \$ 8.02 \)[/tex] million
c. Revenue = [tex]\( \$ 8.96 \)[/tex] million
d. Profit = [tex]\( \$ 0.94 \)[/tex] million
e. Net Profit Margin = [tex]\( 0.1049 \)[/tex] or [tex]\( 10.49\% \)[/tex]