EXIBIT 3.1
Samson Edward Salisbury, a citizen of Australia and an executive with Queensland Consolidated
Oil PLC quit his $800,000 per year job in 2016 to start his own business, Melbourne Chemical
Company (MCC). He now owns and operates five firms that produce several types of chemicals
for sale to businesses and households, mostly in Australia, New Zealand, Papua New Guinea,
Singapore, India, and China. Although MCC has subsidiaries in New Zealand, India, and
Singapore, its global headquarters are located in the Australian city of Sydney. MCC's
headquarters are housed in four commercial building, which he inherited from his great-grand
mother and one of Australia's most important chemical engineers, Dame Margaret Ann
Salisbury. Part of Salibury's inheritance, $5,000,000, was used to purchase equipment (mostly
large and extremely expensive computing systems) for his five businesses. Before he inherited
the buildings in which MCC's headquarters are located, they had been rented to Gold Coast
Mining Consultants, PLC, for $65,000 per month. Last year (2020) MCC had total revenues of
$110,000,000; supplies cost $16,000,000; employees received $45,000,000; and total
advertising expenditures were $25,000,000. Total depreciation expenditures for 2020 were
$4,500,000. Assume a market interest rate of 5 percent.
14. What were MCC's economic profit (?e) in 2020?
