1. Find 3M’s Revenue 2. Find 3M’s Total Cost 3. How much did 3M pay in interest?

Question

1. Find 3M’s Revenue 2. Find 3M’s Total Cost 3. How much did 3M pay in interest? 4. What is the price of 3M’s capital in terms of percentage interest rate? Diversified technology firm 3M offers goods and services in categories outlined in the table below. Segment Automotive electronics Personal protection equipment Healthcare equipment Units sold 7500 125000 4000 Price 2000 40 1200 3m has 30000 employees with the average wage of $500. The company operates $150 million worth of equipment. The company's profit this year is $2.3 million.

Explanation / Answer

Ans:

1) Calculation of 3M’s Revenue.

Revenue = units sold * price

2) calculation of  3M’s Total Cost.

3) Calculation of interest cost

4) calculation of percentage interest rate.

Interest rate = $7,500,000 / $150,000,000

= 0.05 or 5%

Particulars Amount Revenue from automotive electronics(7500 * $2000) $15,000,000 Revenue from personal protection equipment(125000 * $40) $5,000,000 Revenue from healthcare equipment(4000 * $1200) $4,800,000 Total revenue $24,800,000

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