Based on the financial cost incurred if supply is disrupted and the probability that this happens, the number of suppliers the manager should use is Two (2) suppliers.
<h3>How many suppliers should be used?</h3>
If 3 suppliers are used, the probability of disruption would be:
= Probability of super event + (1 - Probability of super event) x Probability of unique event^ number of suppliers
= 5% + (1 - 5%) x 10%³
= 0.145
The payoff would be:
= 2 million x 0.145 + 30,000
= $191,900
With two suppliers:
= 2 million x (5% + (1 - 5%) x 10%²) + 30,000
= $169,000
With one supplier :
= 2 million x (5% + (1 - 5%) x 10%) + 30,000
= $320,000
The lowest cost is with 2 suppliers so this should be chosen.
Find out more on probability of disruption at brainly.com/question/16625463.
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Answer and Explanation:
(a) ε = %ΔQ/%Δp
= ((200,000 − 250,000)/250,000)/((12 − 10)/10)
= −1.00.
Demand is unit elastic since | ε | = 1.00. Alternatively, if a price increase of 20 percent leads to a 20 percent decline in ticket sales, the elasticity is −20/20 or −1.00.
(b) The price increase is not a good idea . Total revenues have fallen from $2,500,000 = (250,000)(10) to $2,400,000 = (200,000)(12). Anytime elasticity is greater than one, an increase in prices will result in a drop in total revenue.
This problem is related to proportionality. In this case, the time to complete the job should be inversely proportional to the number of workers on the job. So based on the given problem above, the deadline changes the number of workers needed would be three times as many as the workers needed. Hope this helps.
IASB Structure:
1. Guardian body
2. IASB Council
3. Standard Advisory Board
4. International Financial Reporting Interpretation Committee (IFRIC)
Explanation
The International Accounting Standard Board (IASB) is an independent institution forming international financial reporting standards (IFRS). The International Accounting Standard Board was established in 1973. It aims to achieve the harmonization of accounting procedures and standards throughout the world.
Learn More:
- Structure IASB brainly.com/question/14009952
- IASB brainly.com/question/4787717
Details:
Grade: Middle School
Subject: Business
Keyword: IASB, IFRS
Answer:
True
Explanation:
You are buying company stock, stock being the amount of profits the company gains, which technically classifies you as an owner
