Consider the function below.

f(x)=8/x−6
What would be the output if the input is 8?


8/14

8/6

2 1/3

4

Answers

Answer 1

The input is 8, the output of the function f(x) would be -5.

What is the function?

Function is a relationship or expression involving one or more variables.  It has a set of input and outputs.

Functions are ubiquitous in mathematics and are essential for formulating physical relationships in the sciences. The modern definition of function was first given in 1837 by the German mathematician Peter Dirichlet

To find the output of the function f(x) when x is 8, we substitute x = 8 into the function and simplify:

f(x) = 8/x - 6

f(8) = 8/8 - 6

f(8) = 1 - 6

f(8) = -5

Hence, if the input is 8, the output of the function f(x) would be -5.

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Related Questions

100 POINTS
Solve x4 - 10x² + 9 = 0.

 100 POINTS Solve x4 - 10x + 9 = 0.

Answers

Answer:

\(x=\pm1 \:\textsf{or}\:x=\pm3\)

Step-by-step explanation:

\(x^4-10x^2+9=0\)

\(\textsf{let}\:x^2=y\)

\(\implies y^2-10y+9=0\)

To factor a quadratic in the form \(ax^2+bx+c\), find 2 two numbers that multiply to \(ac\) and sum to \(b\).

⇒ two numbers that multiply to 9 and sum to -10:  -9 and -1

Rewrite \(b\) as the sum of these 2 numbers:

\(\implies y^2-y-9y+9=0\)

Factorize the first two terms and the last two terms separately:

\(\implies y(y-1)-9(y-1)=0\)

Factor out the common term \((y-1)\):

\(\implies (y-9)(y-1)=0\)

\(\implies (y-9)=0 \implies y=9\)

\(\implies (y-1)=0 \implies y=1\)

Change \(y\) back to \(x^2\):

\(\implies x^2=9\implies x=\pm3\)

\(\implies x^2=1\implies x=\pm 1\)

\(\textsf{So}\: x=\pm1 \:\textsf{or}\:x=\pm3\)

Answer:

\($x=\pm1\;\textrm{or}\;x=\pm3$\)

Step-by-step explanation:

Substitute \(u = x^2\) into the equation. This will make the quadratic formula easy to use.

\(\implies u^2 - 10u + 9 = 0\)

Consider the form \(x^2 + bx + c = 0\). Find a pair of integers whose product is \(c\) and whose sum is \(c\). In this case, whose product is \(9\)and whose sum is \(10\). And write the factored form using the integers.

\(\implies (u - 9)(u - 1) = 0\)

If any individual factor on the left side of the equation is equal to \(0\), the entire expression will be equal to \(0\).

\(\implies \begin{cases}u - 9 = 0 \\ \\ u - 1 = 0\end{cases}\)

Set \(u - 9\) equal to \(0\) and solve for \(u\). Similarly, Set \(u - 1\) equal to \(0\) and solve for \(u\).

\(\implies \begin{cases}u = 9 \\ \\ u = 1\end{cases}\)

Substitute the real value of \(u = x^2\) back into the solved equation.

\(\implies \begin{cases}x^2 = 9 \\ \\ x^2 = 1\end{cases}\)

Take the square root of both sides of the equations to eliminate the exponent on the left side.

\(\implies \begin{cases}x = \sqrt{9} \\ \\ x = \sqrt{1}\end{cases}\)

Solve both the equations for the value of \(x\).

\(\implies \begin{cases}x = \pm3 \\ \\ x = \pm1\end{cases}\)

Hence, this is our required solution for this question.

\(\rule{300}{1}\)

Additional information:

There are three ways to solve a quadratic equation:

FactoringComplete the SquareQuadratic Formula

Factoring uses the logic that the product of any number and zero is zero. Complete the square method uses square root, and the quadratic formula is the simpler method of it.

Quadratic Formula \(x=\dfrac{-b\pm\sqrt{b^2-4ac} }{2a}\)

Find the degree of the polynomial y = -3x^5 + 4x^4 + 2 + x^2

Answers

The degree of a polynomial is the highest exponent of the variable in the polynomial.

In this case, the degree of the polynomial y = -3x^5 + 4x^4 + 2 + x^2 is 5, because the highest exponent of x is 5 (in the term -3x^5). Therefore, the answer is 5.

How can I factor the following expression by grouping:
a) 4x^3 - 2x^2 + 8x - 4

Answers

The factored expression of 4x³ - 2x² + 8x - 4 is (2x² + 4)(2x - 1) by grouping

How to factor the expression by grouping

From the question, we have the following parameters that can be used in our computation:

4x³ - 2x² + 8x - 4

Group the expression in 2's

So, we have

(4x³ - 2x²) + (8x - 4)

Factorize each group

2x²(2x - 1) + 4(2x - 1)

So, we have

(2x² + 4)(2x - 1)

Hence, the factored expression is (2x² + 4)(2x - 1)

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What is (2 + 4i) + (-6-4i) simplified? ​

Answers

simplified the answer is -4

3
2
1
-1
-2
-3
Determine the period.
2
4
6
8
10 12 14

321-1-2-3Determine the period.246810 12 14

Answers

The calculated period of the function is 12

How to determine the period of the function

From the question, we have the following parameters that can be used in our computation:

The graph

By definition, the period of the function is calculated as

Period = Difference between cycles or the length of one complete cycle

Using the above as a guide, we have the following:

Period = 13 - 1

Evaluate

Period = 12

Hence, the period of the function is 12

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If a polynomial has four terms, 3x3 + 5x + 6x2 + 10, which factoring method can be considered? perfect-square trinomial difference of squares factor by grouping sum of cubes

Answers

Answer:

c

Step-by-step explanation:

just took the quiz

Answer:

The answer is C) factor by grouping

Step-by-step explanation:

Edge 2020


Three packs of markers cost $9.00 less than 5 packs of markers. How
much does one pack of markers cost?

Answers

One pack is $4.50.

To make it simpler with no equations, There are 2 packs of markers in-between 3 packs and five packs.
So, $9 divided by 2 packs is 4.5$,
And to prove this scenario right,
3 packs= $13.5. (3•4.5)
5 packs= $22.5. (5•4.5)
So between 5 packs and 3 packs,
There is a difference of 9 dollars,
Hence 3 packs of markers at $13.5,
5 packs is $22.5, so that is $9 less
Than 5 packs of markers.
Therefore one pack of markers is $4.50, by dividing 22.5 by 4.5 or 13.5 by 4.5 after figuring out the previous.

The measure of an angle is 1°. Find the measure of the complement.

Answers

The measure of the complement of a 1-degree angle is 89 degrees.

The complement of an angle is defined as the angle that, when added to the given angle, results in a sum of 90 degrees. To find the measure of the complement of a 1-degree angle, we need to determine the angle that, when added to 1 degree, equals 90 degrees.

Let's denote the measure of the complement as x degrees. According to the definition, we can set up the equation:

1 degree + x degrees = 90 degrees.

To solve for x, we need to isolate it on one side of the equation. By subtracting 1 degree from both sides, we have:

x degrees = 90 degrees - 1 degree.

Simplifying the right side, we get:

x degrees = 89 degrees.

In summary, when an angle measures 1 degree, its complement measures 89 degrees. Complementary angles are pairs of angles that add up to 90 degrees. In this case, since the given angle measures only 1 degree, its complement is significantly larger, nearly forming a right angle. The concept of complementary angles is fundamental in geometry and can be applied to various problems involving angles and their relationships.

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Al transforma la siguiente ecuación de una recta y−4=−14(x−5) a su forma general, se obtiene:

Answers

Answer:

y+14x=74

Step-by-step explanation:

By transforming the following equation of a line y − 4 = −14 (x − 5) to its general form, we obtain:

The given equation of line is :

y − 4 = −14 (x − 5)

Firstly we solve RHS of the equation.

y − 4 = -14x+70

Taking variable on LHS and constants on RHS.

y+14x=70+4

y+14x=74

Hence, the general equation is y+14x=74.

6th grade work please tell me the answer fast and don’t give me and incorrect one

6th grade work please tell me the answer fast and dont give me and incorrect one

Answers

Answer: 222cm

Step-by-step explanation:

To find the area of this composite shape you will have to split them into 2 shapes; a rectangle and a triangle.

To work out the area of the rectangle you have to do 15×12= 180

Then, to work out the area of the triangle, you use the formula base times height divided by 2.

7×12=84

84÷2=42

Then to work out the total area of both the rectangle and the triangle, you have to add the area of both.

180+42=222cm

Hope this helps :)

These questions are about calculus, I would greatly appreciate your help on both questions! .
asap , please !

These questions are about calculus, I would greatly appreciate your help on both questions! .asap , please

Answers

If the function h(t) = tan(5t +4 )  using chain rule  we found values h'(1)=  6.02 and h"(1) = -27.24

What is chain rule for differentiation?

Chain rule for differentiation states that the differentiation of the composition of two functions f, g

(fоg)' = f'(g(x))* g'(x)  , where '  represents first derivative  with respect to independent variable x .

For three functions : x, y, t

(x(y(z(t))))' = x'(y(z(t)))*(y'(z(t)))*z'(t)

Given h(x) = tan(5t+4)

Let  f(t) = tan t and g(t) = 5t+4

f'(t) = sec² t and g'(t) = 5

Then h(t) = fоg(t)

Using chain rule of differentiation:

h'(t) = (fоg(t))' = f'(g(t))* g'(t) = sec²(5t+4) *(5) = 5 sec²(5t+4)

let x(t) = 5t², y(t) = sec(t), z(t) = 5t+4

x'(t) = 10t , y'(t) = sect tan t  , z'(t) =5

(x(y(z(t))))' = x'(y(z(t)))*(y'(z(t)))*z'(t)

h"(t) =(x(y(z(t))))'= 10 sec(5x+4) * sec(5t+4)tan(5t+4)*5

h"(t) = 50sec²(5t+4)tan(5t+4)

The value of h'(t)  at t =1

h'(1 ) = 5 sec²(5(1)+4)= 5 sec²(9) =6.02

h"(1) = 50sec²(5(1)+4)tan(5(1)+4) = 50sec²(9)tan(9) = -27.24

Therefore, the values h'(1 ) = 6.02 and  h"(1)  = -27.24

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A random survey of seventh- and eighth-grade students was conducted to find out how many hours is spent doing homework each night. Of the two sets of data, which has the greater median?

A random survey of seventh- and eighth-grade students was conducted to find out how many hours is spent

Answers

Cοmparing the medians fοund using the given bοx plοt, we fοund that the median οf eighth graders is greater than the median οf the seventh graders.

What is a bοx plοt?  

A bοx and whisker plοt, οften knοwn as a bοx plοt, shοws a data set's five-number summary. The minimum, first quartile, median, third quartile, and maximum make up the five-number summary.

A bοx is drawn frοm the first quartile tο the third quartile in a bοx plοt.

At the median, a vertical line passes thrοugh the bοx. It is generally used tο shοw whether a distributiοn is skewed οr nοt and whether there are any pοtential οutliers, οr οdd οbservatiοns, in the data set.

When cοmparing οr invοlving numerοus data sets, bοxplοts are alsο highly helpful. Graphs can be used tο determine hοw widely the data values vary οr are spread οut.

Frοm the bοx plοt given, we can summarize the fοllοwing,

Fοr seventh graders,

The first quartile Q1 = 3

The third quartile Q3 = 4

Interquartile range = Q3 - Q1 = 4-3 = 1

The median = 3.5

Fοr eighth graders,

The first quartile Q1 = 3.5

The third quartile Q3 = 4.5

Interquartile range = Q3 - Q1 = 4.5 -3.5 = 1

The median = 4

Therefοre cοmparing the medians fοund using the given bοx plοt, we fοund that the median οf eighth graders is greater than the median οf the seventh graders.

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Which graph shows the points (–3, 5) and (4, –3) plotted correctly?

Answers

Answer:

Step-by-step explanation:

This is clearly a linear relationship.  If Alex rented the movie for 0 days, he'd owe nothing.  If he paid $6 for a 3-day rental, the slope of this line would be m = rise / run = $6/(3 days) = $2/day, which is positive.

Then the equation for this graph is C(x) = ($2/day)x, where x is the number of days for which the movie is rented.

Using this formula, we find three particular points on the graph:

(1, $2), (2, $4), (3, ($6)

Answer:

D

Step-by-step explanation:

i just took the test ur welcome:)

Which statement is true regarding the functions on the graph

Which statement is true regarding the functions on the graph

Answers

Answer:

second one

Step-by-step explanation:

f(3)=g(3)=6

PLEASE HELP!! a bag contains 10 marbles. four of them are red, three blue, two white, and one yellow. A mare ke drawn at random. What is the probability that it is blue?

PLEASE HELP!! a bag contains 10 marbles. four of them are red, three blue, two white, and one yellow.

Answers

Answer:

The probability that one marble drawn at random is not blue is 70%

Find the value of x, 6,4, 3x, 4x+1

Find the value of x, 6,4, 3x, 4x+1

Answers

Answer:

If two chords intersect in a circle, then the product of the segments of one chord equals the product of the segments of the other chord.

6(3x) = 4(4x + 1)

18x = 16x + 4

2x = 4

x = 2

How do I write 3/4 as a percent

Answers

Answer:

3/4 written as a percent would be 75%

It should be 3 divided by 4 =75%

What are the intercepts of the graph of

the equation 4y - x = 8

Answers

Answer:

x intercept: (-8,0)

y intercept: (0,2)

If the radius of a circle is 5 inches, what is the diameter of that circle? Show
your work and label your answer.

Answers

Answer:

If the radius of a circle is 5 inches, the diameter is 10.

Step-by-step explanation:

This is because to find the diameter of a circle sing the radius is to multiply it by two. 5x2=10

So the diameter is 10. If you want to find the radius just reciprocate the process, divide the diameter by 2 and yo will get the radius.

I really hope this helped you out. Make sure to give my answer brainliest. Have a radiant day or night ! :D

Find the value of n so that the expression is a perfect square trinomial and then factor the trinomial.
x2 + 20x + n
Group of answer choices

n = 100; (x + 10)2
n = 100; (x - 10)2
n = 100; (x + 10)(x - 10)
n = 400; (x + 20)2

Answers

The correct expression is (a) n = 100; (x + 10)^2

How to determine the value of n?

The expression is given as:

x^2 + 20x + n

Take the coefficient of x

k = 20

Divide by 2

k/2= 10

Square both sides

(k/2)^2 = 100

The above value represents the value of n

i.e.

n = 100

So, we have:

x^2 + 20x + 100

Expand

x^2 + 10x + 10x + 100

Factorize

x(x + 10) + 10(x + 10)

Factor out x + 10

(x + 10)^2

Hence, the correct expression is (a) n = 100; (x + 10)^2

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Standing on top of a building, you use a laser measuring tape to measure your distance from the top and bottom of a nearby statue.You notice that you are a=180 feet from the top of the statue and b=212 feet from the bottom of the statue, and that the angle formed between the top and bottom of the statue is θ=22∘.How tall is the statue? feet   

Standing on top of a building, you use a laser measuring tape to measure your distance from the top and

Answers

Consider the following diagram,

Consider the side 212 feet side makes an angle as denoted in the figure.

Consider that both the triangle have the same base length,

\(180\sin (\varnothing+22)=212\sin (\varnothing)\Rightarrow\frac{\sin (\varnothing+22)}{\sin (\varnothing)}=\frac{212}{180}=\frac{53}{45}\)

Solve the expression further,

\(\frac{\sin\varnothing.\cos22^{\circ}+\cos\varnothing.\sin22^{\circ}}{\sin\varnothing}=\frac{53}{45}\Rightarrow0.927^{}+\cot \varnothing.(0.3746)=\frac{53}{45}\)\(0.3746\cot \varnothing=0.251\Rightarrow\cot \varnothing=0.66945\Rightarrow\varnothing\approx56.2^{\circ}\)

Now, the height of the statue is calculated as,

\(h=b.\cos \varnothing-a.\cos (\theta+\varnothing)=212.\cos 56.2-180.\cos (22+56.2)=154.744\)

Thus, the height of the statue is approximately 154.744 feet.

Standing on top of a building, you use a laser measuring tape to measure your distance from the top and

The following are the distances (in miles) to the nearest airport for 18 families.

6, 7, 8, 10, 11, 16, 17, 18, 23, 23, 28, 30, 30, 34, 35, 36, 37, 38.
Notice that the numbers are ordered from least to greatest.

Make a box-and-whisker plot for the data.

Answers

A construction of the box-and-whisker plot for the data is shown below.

What is a box-and-whisker plot?

In Mathematics and Statistics, a box plot is sometimes referred to as box-and-whisker plot and it can be defined as a type of chart that can be used to graphically or visually represent the five-number summary of a data set with respect to locality, skewness, and spread.

Based on the information provided about the given box-and-whisker plot, the five-number summary for the given data set include the following:

Minimum (Min) = 6.First quartile (Q₁) = 10.75.Median (Med) = 23.Third quartile (Q₃) = 34.25.Maximum (Max) = 38.

In conclusion, we can reasonably infer and logically deduce that the maximum number is 38 while the minimum number is 6, and the median is equal to 23.

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The following are the distances (in miles) to the nearest airport for 18 families.6, 7, 8, 10, 11, 16,

I need help with this question please with details

I need help with this question please with details

Answers

The dimensions of the rectangular box are given as follows:

All the dimensions.

A. 6 inches long, 3 inches wide, 3 inches tallB. 9 inches long, 2 inches wide, 3 inches tallC. 18 inches long, 3 inches wide, 1 inch tallD. 27 inches long, 2 inches wide, 1 inches tall

How to obtain the volume of a rectangular prism?

The volume of a rectangular prism, with dimensions length, width and height, is given by the multiplication of these dimensions, according to the equation presented as follows:

Volume = length x width x height.

The box's volume is obtained as follows:

54 x 1³ = 128 x (3/4)³ = 54 cubic inches. (the volume of a cube is the side length cubed)

Hence all the options can be the dimensions of the box, as all the options have a multiplication resulting in 54.

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Tenisha solved the equation below by graphing a system of equations.
log35x = log (2x+8)
Which point approximates the solution for Tenisha's system of equations?
0 (0.9, 0.8)
O (1.0, 1.4)
O (2.3, 1.1)
O (2.7, 13.3)

Tenisha solved the equation below by graphing a system of equations.log35x = log (2x+8)Which point approximates

Answers

Answer:

Option B.)

Step-by-step explanation:

Just took the test and got 100% :]

The system of logarithmic equation is graphed and the point of intersection of the equation is log₃ ( 5x ) = log₅ ( 2x + 8 ) is A ( 1.0 , 1.4 )

What is Equation of Graph of Polynomials?

Graphs behave differently at various x-intercepts. Sometimes the graph will cross over the x-axis at an intercept. Other times the graph will touch the x-axis and bounce off.

Identify the even and odd multiplicities of the polynomial functions' zeros.

Using end behavior, turning points, intercepts, and the Intermediate Value Theorem, plot the graph of a polynomial function.

The graphs cross or are tangent to the x-axis at these x-values for zeros with even multiplicities. The graphs cross or intersect the x-axis at these x-values for zeros with odd multiplicities

Given data ,

Let the solution to the logarithmic equation be represented as A

Now , the value of A is

log₃ ( 5x ) = log₅ ( 2x + 8 )

On simplifying , we get

log₃ ( 5x ) = log₁₀ ( 5x ) / log₁₀ ( 3 )

log₅ ( 2x + 8 ) = log₁₀ ( 2x + 8 ) / log₁₀ ( 5 )

Substituting the logarithmic quantities , we get

log₁₀ ( 5x ) / log₁₀ ( 3 ) = log₁₀ ( 2x + 8 ) / log₁₀ ( 5 )

On cross multiplying , we get

log₁₀ ( 5x ) / log₁₀ ( 2x + 8 ) = log₁₀ ( 3 ) / log₁₀ ( 5 )

( 5x ) / ( 2x + 8 ) = 3/5

On cross multiplying , we get

25x = 6x + 24

Subtracting 6x on both sides , we get

19x = 24

Divide by 19 on both sides , we get

x = 1.26

Therefore , the approximate values of the function on graphing is A ( 1.0 , 1.4 )

Hence , the solution of function from graphing is A ( 1.0 , 1.4 )

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16) If m∠10=77⁰, m∠7=47⁰, and m∠16=139⁰, find the measure of each angle.
a. m∠1 =
b. m∠2 =
c. m∠3 =
d. m∠4 =
e. m∠5 =
f. m∠6 =
g. m∠8 =
h. m∠9 =
i. m∠11 =
j. m∠12 =
k. m∠13 =
l. m∠14 =
m. m∠15 =
n. m∠17 =
o. m∠18 =

16) If m10=77, m7=47, and m16=139, find the measure of each angle.a. m1 = b. m2 = c. m3 = d. m4 = e.

Answers

Using corresponding and alternating angle theorem. The values of the angles in the figure are m∠1 = 47, m∠2 = 133, m∠3 = 139, m∠4 = 41, m∠5 = 139 degrees respectively.

Corresponding and Alternating Angles

The corresponding angle postulate states that the corresponding angles are congruent if the transversal intersects two parallel lines. In other words, if a transversal intersects two parallel lines, the corresponding angles will be always equal.

Alternate angle theorem states that when two parallel lines are cut by a transversal, then the resulting alternate interior angles or alternate exterior angles are congruent.

a. m∠1 = m∠7

Reason : Corresponding angles are equal

m∠1 = 47°

b. m∠2 = 180 - m∠1

Reason: Angles on a straight line

m∠2 = 180 - 47

m∠2 = 133°

c. m∠3 = m∠16

Reason : alternating angles are equal

m∠ = 139°

d. m∠4 = 180 - m∠3

Reason : Angles on a straight line

m∠4 = 41°

e. m∠5 = 180 - m∠4

Reason: Angles on a straight line

m∠5 = 139°

n. m∠17 = 180 - m∠6

m∠17 = 41°

f. m∠ 6 = m∠15

m∠15 = m∠17

Reason : Opposite angles are equal

m∠ 6 = m∠ 17

Reason : Alternating angles are equal

m∠ 6 = 41°

g. m∠8 = m∠1

m∠ 8 = 47°

h. m∠ 9 = m∠2

m∠9 = 133°

m. m∠15 = m∠ 17

m ∠ 15 = 41°

o. m∠ 18 = 360 - (m∠15 + m∠16  m∠ 17)

m∠18 = 360 - (41 + 139 + 41)

m∠18 = 139°

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Its factorial math pleaseHelp.

Its factorial math pleaseHelp.
Its factorial math pleaseHelp.

Answers

\(\dfrac{7!4!}{5!3!}=6\cdot7\cdot4=168\)

Hailey invested $940 in an account paying an interest rate of 8\tfrac{1}{4}8
4
1

% compounded quarterly. Justin invested $940 in an account paying an interest rate of 7\tfrac{5}{8}7
8
5

% compounded monthly. To the nearest dollar, how much money would Hailey have in her account when Justin's money has tripled in value?

Answers

Answer:

can you write it in a clearer way

Step-by-step explanation:

Expressed in simplest a + bi form, (7-3i) + (x - 2i)² - (4i + 2x²) is

Answers

Therefore, the expression (7-3i) + (x - 2i)² - (4i + 2x²) in the simplest a + bi form is: -2x² - 1 - (4x + 7i)

What are the different forms of linear equation?

Linear Equation                   General Form                    Example

Slope intercept form             y = mx + b                            y + 2x = 3

Point–slope form                   y – y1 = m(x – x1 )              y – 3 = 6(x – 2)

General Form                            Ax + By + C = 0               2x + 3y – 6 = 0

Intercept form                        x/a + y/b = 1                 x/2 + y/3 = 1

As a Function f(x) instead of y      f(x) = x + C                         f(x) = x + 3

The Identity Function                      f(x) = x                     f(x) = 3x

Constant Functions                      f(x) = C                       f(x) = 6

Let's start by expanding the square term (x - 2i)² using the formula for (a + b)²:

(x - 2i)² = x² - 4xi + 4i²

Note that i² = -1, so we can simplify this expression to:

(x - 2i)² = x² - 4xi - 4

Substituting this expression and the given values into the original expression, we get:

(7 - 3i) + (x² - 4xi - 4) - (4i + 2x²)

Grouping the real and imaginary terms, we get:

(7 - 4 - 2x²) + (-3i - 4i - 4x) + (x²)

Simplifying the real part, we get:

-2x² - 1

Simplifying the imaginary part, we get:

-7i - 4x

Learn more about Linear equations here:

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the sum of a number and three is less than twelve

Answers

Answer:

The equation is    x+3<12  

The answer is       x<9

Step-by-step explanation:

(The sum of a number = x) (and = +) (three is less than twelve = 3<12)

This means the equation is x+3<12, so then you subtract 3 from both sides and end up with x<9

Hope this helps :)

Q2) A company is evaluating the extension of credit to a new group of customers.
Although these customers will provide $180,000 in additional credit sales, 12% are likely
to be uncollectible. The company will also incur $16,200 in additional collection
expense. Production and marketing costs represent 72% of sales. The firm is in a 34% tax
bracket and has a receivables turnover of four times. No other asset buildup will be
required to service the new customers. The firm has a 10% desired return.
has a
a. Calculate the incremental income after taxes and the return on incremental
investment. Should the company extend credit to these customers?
b. Based on the income level determined in (a), should credit be extended if an
additional investment in inventory is considered? Assume an inventory turnover
of 1.6 times.

Answers

Answer:

Step-by-step explanation:

a. To calculate the incremental income after taxes, we need to determine the incremental costs and revenues associated with extending credit to the new customers. The additional credit sales will generate $180,000 in revenue, but we need to subtract the expected uncollectible amount of 12% * $180,000 = $21,600. The net additional credit sales will be $180,000 - $21,600 = $158,400.

The production and marketing costs will be 72% * $180,000 = $129,600. The total incremental costs will be $129,600 + $16,200 (collection expense) = $145,800.

The incremental income before taxes will be $158,400 - $145,800 = $12,600. The income tax will be 34% * $12,600 = $4,284. The incremental income after taxes will be $12,600 - $4,284 = $8,316.

To calculate the return on incremental investment, we need to determine the incremental investment required to extend credit to the new customers. Since no additional investment in assets is required, the incremental investment will be equal to the incremental costs of $145,800. The return on incremental investment will be $8,316 / $145,800 = 5.7%.

Based on the return on incremental investment of 5.7%, the company should not extend credit to the new customers, as it is below the desired return of 10%.

b. If an additional investment in inventory is required to extend credit to the new customers, we will need to recalculate the incremental income after taking into account the additional investment. If the additional investment in inventory is $x, the incremental investment will be $145,800 + $x. The incremental income before taxes will be $158,400 - ($129,600 + $16,200 + $x) = $12,600 - $x. The income tax will be 34% * ($12,600 - $x) = $4,284 - $x * 0.34. The incremental income after taxes will be ($12,600 - $x) - ($4,284 - $x * 0.34) = $8,316 - $x * 0.34.

To determine whether credit should be extended, we need to compare the return on incremental investment to the desired return of 10%. The return on incremental investment will be ($8,316 - $x * 0.34) / ($145,800 + $x). Setting this equal to the desired return of 10% and solving for x, we find that the additional investment in inventory cannot exceed $24,764 for the company to meet its desired return. If the additional investment in inventory is less than or equal to $24,764, the company should extend credit to the new customers. If it is greater than $24,764, the company should not extend credit to the new customers.

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