Suppose a small lumber company operates in Washington State. The production process in this case involves chopping down and processing trees that grow deep in forests throughout the state. The company currently owns 160 axes. Each axe lasts two seasons, meaning the company must replace half of its axes each year. The company owns no other capital goods, and uses no other materials. Since each axe can only be used by one worker, the company hires 160 workers. Each worker works 200 hours during the season, and produces 5 boards per hour. Each axe costs $800, the hourly wage is $15, and lumber currently sells for $3.85 per board. Assume that all output is sold. Calculate the following:

1) total wages and benefit

2)total sales revenue

3)total cost of depreciation and replacement

4)capital goods owned

5)total profit

6)net output

7)the profit rate

8) Suppose now that each axe only lasts one season, meaning the company must replace all of its axes each year. Calculate the new profit rate that would result.

Instructions: Be sure to enter your answer as a percentage. Round your answer to two decimal places.