Scenario: 500 units of a product are being manufactured and the question to be answered is whether or not to perform a particular test on those units before shipping. The test costs $10,000 per unit to perform. The cost not to perform the test is $0 per unit, but if a unit fails in the field then it will have to be fixed in the field, which has a cost of $350,000 per unit.
If the units are tested, for the units that pass the test, there is now an additional cost of re-readying the units for delivery of $2,000 per unit. For the units that fail the test, there is now an additional cost of $21,000 to fix the units, as well as the $2,000 per unit cost of re-readying them for delivery, for a $23,000 total cost per unit.
Historically you know and can count on the fact that 96% of your products will pass the testing. The same pass/fail rate for testing applies to the pass/fail rate observed in the field.
To fully complete this assignment, you need to answer or perform the following:
The math and resulting values you are expected to fill in to show the completion of the decision tree.
Be sure to fill in the last two values: what is the Expected Monetary Value for both performing the test and not performing the test?
Which choice should be made? Be sure to include with your submission an answer to whether the test should be performed or not, and give a short answer why.
Answer:
7000
Explanation:
The better choice is to not perform the test. This decision is based on the higher expected monetary value, indicating that not performing the test is more financially favorable in this scenario.
How did we arrive at this assertion?To make an informed decision, we'll calculate the Expected Monetary Value (EMV) for both performing the test and not performing the test.
For performing the test:
EMV = (Probability of passing * (Revenue - Test Cost)) + (Probability of failing * (Revenue - Test Cost - Fixing Cost - Re-readying Cost))
EMV = (0.96 * ($350,000 - $10,000)) + (0.04 * (-$350,000 + $23,000))
For not performing the test:
EMV = (Probability of passing in field * Revenue) + (Probability of failing in field * Fixing Cost)
EMV = (0.96 * $350,000) + (0.04 * $350,000)
Now we'll calculate the values:
EMV for performing the test = (0.96 * $340,000) + (0.04 * -$327,000) = $326,400
EMV for not performing the test = (0.96 * $350,000) + (0.04 * $350,000) = $350,000
Based on the calculations, the EMV for not performing the test is higher ($350,000) than performing the test ($326,400).
Therefore, the better choice is to not perform the test. This decision is based on the higher expected monetary value, indicating that not performing the test is more financially favorable in this scenario.
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A demand curve shows the graphical relationship between price and services
It should be noted that demand curve shows the graphical relationship between price and services as well as quantity demanded.
What is a demand curve?The demand curve can be regarded as economic graphical representation ,which display relationship between the price and quantity demanded.
This demand curve is very crucial in economics because it helps in economic analysis.
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Attending classes is a faster and more efficient method of learning new skills as compared to electronic performance support systems (EPSSs).
a. True
b. False
Answer:
b.False
Explanation:
It is not scientifically proven because both can do depending on your work ethic
A car valued at $30,000 has $600 of depreciation to be adjusted as of January 31st. Which entry should be made
The journal entry for recording the adjusted depreciation expense of $600 is given below:
On Jan 31
Depreciation expense Dr $600
To Accumulated depreciation $600
(Being depreciation expense is recorded)
Here the depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets.
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Decide if each would be considered an annuity or not an annuity. a. $1000 cash received in year 1 then $1200 cash received in year 2 then $1500 cash received in year 3 b. $200 paid each month for 12 months
15. Although she hates the work, Jessica has spent most weekends and the last three summers as a short-order cook; she has an associate's degree in paralegal
studies; she loves to ride and spends every spare minute helping her uncle with his three horses. Now that she's planning to start a business, her best choice
would probably be a
O A. fast-food franchise.
O B. riding stable.
© C. restaurant.
D. legal research service.
What is a relationship between a Hr and a line up management of an organisation?
Answer:
When conflicts arise, line managers typically seek the advice of HR in resolving issues between employees or issues between employees and their managers. A positive working relationship between HR and line management facilitates easier handling of workplace investigations and mediating differences between staff.
Scientific management approach has lost its relevance. How might today's
organization use it?
Why do you think managers have difficulty delegating?
Answer:
syntific mamagement loss it relevance its relevs today it will might today it will not lost revalance
how the looting of shops and malls will affect business in terms of the relationship between social responsibility and triple bottom line
The looting of shops and malls will affect business in terms of social and triple bottom line relationship.
Triple bottom line is a business concept in which businesses focus and look for the impact on social and environment by their business activities.
If a shop or mall is looted it will have great impact on environment and social relationship.
The businessmen will feel insecure in the state and will be afraid of investing more money into business.
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Your rich aunt has promised to give you $5,000 per year at the end of each of the next four years to help you pay for college. Using a discount rate of 7%, what is the present value of the gift. If the JPEG file doesn't open, Appendix A in your book has full Present Value tables.
Answer:
Nour rich aunt has promised to give you $5,000 per year at the end of each of the next four years to help you pay for college. Using a discount rate of 7%, what is the present value of the gift. If the JPEG file doesn't open, Appendix A in your book has full Present Value tables. PV.Tables-Lumo-Ann PG 54,278 $12,411 $20,000 $16.935 Table A-1 Present Value of $1 Preser Periods 1% 2% 3% 4% 5% 6% 7% 1 2 3 4 5 0.990 0.980 0.971 0.961 0.951 0.971 0.943 0.915 0.888 0.863 0.962 0.925 0.889 0.855 0.822 0.952 0.907 0.864 0.823 0.784 0.943 0.890 0.840 0.792 0.747 0.935 0.873 0.816 0.763 0.713 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 OOOOO OOOOO 6 7 8 9 10 0.942 0.93 0.923 0.914 0.905 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.672 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 Table A-2 Present Value of Ordinary Annuity of $1 Pre Periods 15 2 3% 4% 5% 65 7% 0.943 1 2 0980 1942 2.884 3.808 4.713 0.952 1.886 2.775 3.630 4.452 0.952 1859 2.723 3.546 4320 0915 1.80 2624 2673 3.065 4.212 4 5 3387 0.990 1970 2.941 3.902 4.853 5.795 6.728 7,652 8.566 4100 0.971 1.91 2620 3.712 4.580 5.417 6.210 7020 7.796 8.530 6 7 5.601 6.472 7.325 8.16 5.242 6.002 6.733 7.435 8.111 5076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.50 4.767 5.389 5.971 6.515 7.024 9 10 11 10 9.787 9.253 8760 8.306 7.39
Past behavior of demand is indicative of its future behavior, therefore past demand data can be used to construct demand forecasts. This statement is the underlying principle of the ______ method.
This statement is the underlying principle of the __time series analysis___ method.
Time series analysis method is a statistical technique that is often employed to determine how a variable changes over a series of time.
Time series analysis has been used in sciences, economics, and mathematics to determine changes of a given data variable over time and in relation to other variables in the same time period.
The wide application of the time series analysis method in various fields is dictated by the need to construct forecasts and make predictions, that is, using past realities to guess future realities.
Thus, this statement that the underlying principle of time series analysis method is based on the fact that past behavior of demand is indicative of its future behavior is widely accepted.
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Suppose the supply of apples sharply increases because of perfect weather conditions throughout the growing season. Assuming no change in demand, explain the effect on the-equilibrium price and quantity of apples.
Answer:
A surplus.
Explanation:
Well its simple, first to explain what is the equilibrium price which is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price which is exactly what is happening in this case.
Assuming equal time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity?
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
A) $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
B) $ 500 $ 0 $ 500 $ 500 $ 500 $ 0
C) $ 100 $ 200 $ 300 $ 400 $ 500 $ 600
a) A
b) B
c) C
d) Any of the above
The following cash flow patterns represent an annuity $ 100 $ 200 $ 300 $ 400 $ 500 $ 600. Thus, option (C) is correct.
What is Cash Flow?The net balance of money coming into and going out of a business at a particular period is referred to as cash flow. A firm constantly receives and expends cash. Cash flow is a metric for how much money a company
Earned or spent overall during a given period of time. On the statement of cash flows, a common financial statement, cash flow is often divided into cash flow from operating activities, investing activities, and financing activities.
Time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity. following cash flow patterns represent an annuity of $ 100 $ 200 $ 300 $ 400 $ 500 $ 600.
Therefore, Thus, option (C) is correct.
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Select the statement below that best defines prepaid accounts. Multiple choice question. Prepaid accounts reflect a company's cash balance and include currency, coins and money orders. Prepaid accounts are liabilities that are due within a specified time period. Prepaid accounts are expenses and are increased with a credit. Prepaid accounts are assets that represent prepayments of future expenses.
The statement related to the prepaid account " It is the asset that shows advance payment for the future expense" is correct.
The information related to the prepaid account is as follows:
It is the account that shows in the current asset side of the balance sheet.It is an advance payment for future expenses.It contains the normal debit balance.Neither it is a liability nor an expense account.Therefore we can conclude that The statement related to the prepaid account " It is the asset that shows advance payment for the future expense" is correct.
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A project will reduce costs by $41,500 but increase depreciation by $20,300. What is the operating cash flow if the tax rate is 40 percent?
Answer:
hevelle, Inc., has sales of $39,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400If the tax rate is 35 percent, what is the operating cash flow?Operating Cash FlowTo calculate operating cash flow (OCF), we want to calculate revenues minus costs, but we don't want to include depreciation because it's not a cash outflow, and we don't want to include interest because it's a financing expense. We do want to include taxes because taxes are (unfortunately) paid in cash.EBIT = Earnings before interests and taxesIncome Statement:Sales 39,500Costs 18,400Depreciation 1,900EBIT= Sales – Costs – Depreciation = 19,200Interest1,400Taxable Income = EBIT – interest = 17,800Taxes (35%) Taxable income X Tax Rate % = 6,230Net Income Taxable income – taxes = 11,570
Explanation:
hevelle, Inc., has sales of $39,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400If the tax rate is 35 percent, what is the operating cash flow?Operating Cash FlowTo calculate operating cash flow (OCF), we want to calculate revenues minus costs, but we don't want to include depreciation because it's not a cash outflow, and we don't want to include interest because it's a financing expense. We do want to include taxes because taxes are (unfortunately) paid in cash.EBIT = Earnings before interests and taxesIncome Statement:Sales 39,500Costs 18,400Depreciation 1,900EBIT= Sales – Costs – Depreciation = 19,200Interest1,400Taxable Income = EBIT – interest = 17,800Taxes (35%) Taxable income X Tax Rate % = 6,230Net Income Taxable income – taxes = 11,570
The mass of the eggs laid by a certain breed of hen is normally distributed random variable with mean 0.06kg and standard deviation 0.009kg. if a random sample of 1800 eggs are sold, how many would you expect to have mass
i. less than 0.052kg
ii. between 0.052 and 0.075kg)
III greater than 0.075
The correct answer by the standard deviation would be as follow:
i. less than 0.052kg - 288 eggs
ii. between 0.052 and 0.075kg) - 1476 eggs
III greater than 0.075 - 36 eggs
Given:
number of the samples, n = 1800 eggs
the mean of the distribution, m = 0.06 kg
standard deviation, d = 0.009 kg
(i) less than 0.052 kg (standard size):
1 standard deviation below the mean = m - d
m - d = 0.06 kg - 0.009 kg = 0.051 kg
(the standard size is 1 standard deviation below the mean)
less than 1 standard deviation below the mean in a normal distribution is = 16% of the given samples
Number of standard size = 0.16 x 1800
= 288 eggs
(ii) Between 0.052 kg and 0.075kg (medium size):
0.052 kg is 1 standard deviation below the mean
2 standard deviations above the mean:
> m + 2d
> m + 2d
> 0.06 + 2(0.009)
= 0.078 kg
Between 1 standard deviation below the mean and 2 standard deviation above the mean in a normal distribution
= (68 + 14)%
= 82%
Number of medium size = 0.82 x 1800
= 1,476 eggs
(iii) Greater than 0.075 kg (large size):
0.078 kg is 2 standard deviations below the mean
greater than 2 standard deviation above the mean in a normal distribution = 2 % of the number of given samples
Number of large size = 0.02 x 1800
= 36 eggs
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How looting affects the business in terms of the relationship between social responsibility and triple bottom line?
Looting is simply stealing from the business. It is simply an act that is done to make a business inoperable.
Looting is an act of socially irresponsible people. They are acts that do not benefit the society at the end of the day. It reduces economic growth, causes a decline in welfare and also bad to the environment.
The triple bottom effect teaches that organizations should be able to measure their social as well as environmental impacts. Instead of being just focused on gains, they should be focused on the people, the environment also.
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Can someone help me please this is only the last question. The subject is Accounting.
Explanation:
The answer is A because We paid a creditor 60 by cheque because if we pay by cheque our back reduces and our creditors reduce.
Which of the following is not a party involved in dental insurance
A- Patient
B- Provider
C- Carrier
D- Deductible
Answer:
Explanation:
Sei lá kkkkkk
Suppose a commercial bank has checkable deposit of $100,00 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves: _______
A. are $30,000
B. are $40.000.
C. are $20,000.
D. none of the above
Answer:
C
Explanation:
Borrowed $24,000 from a bank and signed a note. Principal and interest at 8% will be paid on January 31, 2022.
Answer:
principal = $4864
interest. = $32.42
Total payment. = $4896.42
61.
Write 'T' against a true statement and 'F' against a false
Sharing or exchanging information, ideas and experien
means communication.
62.
63.
The process of communication may not always contain am
Feedback is one of the elements of the process of commun
A traffic police showing a stop sign to the public is a proce
64.
65
Oral communication is a form of non-verbal communication
Name any FIVE diversity issues that affect the farm manufacturing
Answer:
not be dismissed against any manufacturer because of market-share liability
Which of the following is not considered fraudulent?
A- Billing for services not provided
B- signature on file
C- Changing fees to obtain higher payment
D- Disregarding the copayment
Answer:
answer for your question is B) signature on file
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Pharoah Co began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases
and sales
Purchases
Date
Units
Unit Cost
Sales Units
July
1
5140
July 11
>
$150
July 14
July 21
5161
July 27
(1)
Answer:
july 1 5140 this os the answer
How is economics a science?
Answer:
Economics is the scientific study of the ownership, use, and exchange of scarce resources – often shortened to the science of scarcity. Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations.
What is the education level of a majority of the Power, Structural, and Technical Systems workers?
associate's degree or vocational school degree
bachelor's degree or apprenticeship bachelor's degree or master's degree master's degree or vocational school degree
Answer:
B - bachelor’s degree or apprenticeship
Explanation:
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Briefly explain the weaknesses of the RSA's Industrial Development Zones?
Suppose a monopolistically competitive firm is earning an economic profit. The marginal revenue from selling an additional unit is $30, and the marginal cost of producing that additional unit is $23. The firm should _____
What type of appliances are technicians certified to charge and open after passing the Type I examination?
Answer:
Appliances containing 5 pounds or less of refrigerant that have been hermetically sealed and charged at the factory.
appliances that have been hermetically sealed and charged at the manufacture and contain 5 pounds or less of refrigerant.
What is Type I examination?1. EU type-examination is the process by which a notified body determines and certifies that a device, including its technical documentation, pertinent life cycle processes, and an associated representative sample of the device production planned, satisfies the pertinent requirements of this Regulation.
2. The EPA has created four different certifications: in order to maintain tiny appliances (Type I). except for small appliances and MVACs, for the maintenance or disposal of high- or extremely high-pressure appliances (Type II). For maintaining or getting rid of low-pressure equipment (Type III).
Appliances of Type I are hermetically sealed. This denotes that internal components are both airtight and sealed against the elements. Consider this to be your phone. Your phone's internal circuitry and other components are enclosed in a tidy device.
Thus, appliances that have been hermetically sealed
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