Vardan coal mining Co. Uld took a coal mine. on lease on a royalty f 2...
Royalty Chart for Vardan Coal Mining Co.
Year | Output (in tonnes) | Royalty (per tonne) | Total Royalty
--- | --- | --- | ---
1 | 2000 | $2.50 | $5,000
2 | 2800 | $2.50 | $7,000
3 | 4000 | $2.50 | $10,000
4 | 4500 | $2.50 | $11,250
5 | 5000 | $2.50 | $12,500
Total | 18300 | - | $46,750
Explanation:
- The table shows the royalty chart for Vardan Coal Mining Co. for a period of 5 years.
- The output of the coal mine for each year is given in the second column.
- The royalty rate for each tonne of coal produced is $2.50, as stated in the lease agreement.
- The third column shows the royalty paid per tonne of coal produced.
- The total royalty for each year is calculated by multiplying the output with the royalty rate and is given in the fourth column.
- The total royalty for the 5-year period is $46,750, which is the sum of the royalty paid for each year.
Overall, the royalty chart helps Vardan Coal Mining Co. to keep track of the amount of royalty it has to pay for each year and plan its finances accordingly. By analyzing the chart, the company can also identify any fluctuations in the output and take appropriate measures to improve its production.
Vardan coal mining Co. Uld took a coal mine. on lease on a royalty f 2...
Bcom 1st semister Royalty According notes