-skill set
-education level
-training/ experience
-the type of work you would have to do
-the type of industry
-some jobs are less desirable hence pay more
-existence of trade unions
Answer:
Expected value of profit = -3750 + 2,000 + 2,500 + 0
Explanation:
<em>The expected value of is the sum of the possible profit under different outcomes multiplied by their respective probabilities</em>
Profit Prob P× Profit
(15000) × 0.25 = -3750
20,000 × 0.1 = 2,000
25,000 × 0.1 = 2,500
0 × 0.55 = <u> 0_____</u>
Expected value of profit = <u> 750</u>
Expected value of profit = -3750 + 2,000 + 2,500 + 0
= $750
<em>Note the figures given are stated as profits and not revenue. So we do not make use of the investment cost of $20,000</em>
Answer:
The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.
Explanation:
Answer:
The Estimated variable cost per machine hour for utilities is $2.50
Explanation:
High low method segregates the variable cost and fixed from the total cost using highest activity data and lowest activity data.
According to given data
Month Machine hours Utility cost
January 900 $5,450
February 1,800 $6,900
March 2,400 $8,100
April 600 $3,600
Using formula of High Low method
Variable cost = ( Cost of Highest activity - Cost of lowest activity ) / ( Highest activity - Lowest activity )
Variable cost = ( $8,100 - $3,600 ) / ( 2,400 - 600 )
Variable cost = $4,500 / 1800
Variable cost = $2.5
Fixed Cost = $8,100 - ( 2,400 x 2.5 ) = $8,100 - $6,000 = $2,100
Answer:
The value of x is 566.36
Explanation:
The value of x should be such that the present value of both Investments is the same when discounted at a rate of 11%. To calculate the present value, we use the following formula,
Present Value = CF 1 / (1+r) + CF 2 / (1+r)^2 + ... + CFn / (1+r)^n
Where,
- CF represents Cash flow
- r represents the discount rate
So, we equate both the present value of Investment A and B to calculate the value of x.
Present Value of A = Present Value of B
450/(1.11) + 650/(1.11)^2 + 850/(1.11)^3 = 850/(1.11) + x/(1.11)^2 + 450/(1.11)^3
1554.472661 = 765.7657658 + x/(1.11)^2 + 329.0361216
1554.472661 - 765.7657658 - 329.0361216 = x/(1.11)^2
459.6707736 * (1.11)^2 = x
x = 566.3603602 rounded off to 566.36
