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Goshia [24]
3 years ago
11

The management of Madeira Computing is considering the introduction of a wearable electronic device with the functionality of a

laptop computer and phone. The fixed cost to launch this new product is $300,000. The variable cost for the product is expected to be between $160 and $240, with a most likely value of $200 per unit. The product will sell for $300 per unit. Demand for the product is expected to range from 0 to approximately 20,000 units, with 4,000 units the most likely.
Model the variable cost as a uniform random variable with a minimum of $160 and a maximum of $240. Model product demand as 1,000 times the value of a gamma random variable with an alpha parameter of 3 and a beta parameter of 2. Construct a simulation model to estimate the average profit and the probability that the project will result in a loss.

Business
1 answer:
Stels [109]3 years ago
3 0

Answer:

Explanation:

Find attached the solution and the relevant formulas

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The Peach State Onion​ Company's onion-bagging machine was found to operate at mean​ = 25.05 pounds with a standard deviation of
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Answer: The process of capability index is 1.03

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3 years ago
John's job provided the main income for his family. He died unexpectedly and had no life insurance. The probable financial conse
Leto [7]

Answer:

An increase in income and expenses

Explanation:

When the main provider of a family dies and he/she doesn't have any type of life insurance, then the whole family's economy will suffer. Their total income will probably plummet. Besides losing John's income, his family must all the  expenses related to his death, e.g. burial. As a terrible consequence, John's family will see their standard of living decrease.

8 0
3 years ago
Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in c
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Answer:

11.06%

Explanation:

Calculation to determine What will be the WACC for this project

First step is to calculate the Weight of Debt

Weight of Debt = $750,000 / $1,708,000

Weight of Debt = 0.4391

Second step is to calculate the Weight of Preferred Stock

Weight of Preferred Stock = $78,000 / $1,708,000

Weight of Preferred Stock = 0.0457

Third step is to calculate the Weight of Equity

Weight of Equity = $880,000 / $1,708,000

Weight of Equity = 0.5152

Fourth step is to calculate After Tax Cost of Debt

After Tax Cost of Debt = 11.1% * (1 – 0.40)

After Tax Cost of Debt = 6.66%

Now let calculate WACC using this formula

WACC = (Weight of Debt * After Tax Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Equity * Cost of Equity)

Let plug in the formula

WACC = (0.4391 * 0.0666) + (0.0457 * 0.1220) + (0.5152 * 0.1470)

WACC = 0.02924406+0.0055754+0.0757344

WACC =0.1106*100

WACC =11.06%

5 0
2 years ago
Tells us why you would be a great team member and what sets you apart from other candidates
tatuchka [14]

Sorry but you need to answer this one bud. I would help you if I could but I don't know what makes you, well you. :)

4 0
3 years ago
When scheduling the audit work to be performed on an engagement, the auditors should consider confirming accounts receivable bal
Dvinal [7]

Answer:

The correct answer is letter "B": Internal control over receivables is good.

Explanation:

Only in the case the internal control of an organization is well-established enough so those account receivables (AR) are paid according to the terms agreed between the organization and its debtors, auditors could consider the balance of the account receivables at a provisional date.

7 0
3 years ago
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