Suppose that the manager of a company has estimated the probability of a super-event sometime during the next three years that w
ill disrupt all suppliers as 2%. In addition, the firm currently uses four suppliers for its main component, and the manager estimates the probability of a unique-event that would disrupt one of them sometime during the next three years to be 20%. Supplier management costs during this period are $50,000 per supplier. The financial cost incurred if all four suppliers are disrupted at the same time is estimated to be $10,000,000. What is the expected monetary value (i.e., cost) of the current supplier diversification arrangement? Show the results by drawing the decision tree in POM-QM.
1 answer:
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Answer: The answer has been attached
Explanation:
The income statement also referred to as the profit and loss account is a financial statements of a company that shows the revenues and the expenses of a company during a particular period.
The income statement for Ernst consulting has been attached.
Answer and Explanation:
The adjusting entries are shown below"
A. Supplies Expense $1,000 ($7,500 - $6,500)
To Supplies $1,000
(Being the Supplies Expense is adjusted)
B. Insurance Expense $18,000 ($24,000 - $6,000)
To Prepaid Insurance $18,000
(Being Insurance Expense is adjusted)
C. Unearned Service Revenue $1,800 ($3,000 - $1,200)
To Service Revenue $1,800
(Being Service Revenue is adjusted)
D. Salaries Expense $2,400
To Salaries Payable $2,400
(being Salaries Expense is adjusted)
E. Depreciation Expense $18,000
To Accumulated Depreciation- Property Plant and Equipment $18,000
(Being Depreciation Expense is adjusted)
