Ask question

Ask question

All categories

3 years ago

10

Suppose it costs $2,500 to buy a defibrillator. Find the expected value of owning a defibrillator if there is a 4% probability t

hat Plant Fitness will lose a lawsuit regarding its operation, with each lawsuit resulting in Plant Fitness being liable in the amount of $1,000,000.

1 answer:

Blizzard [7]3 years ago

3 0

Answer:

yeah

Explanation:

You might be interested in

In a perfectly competitive market in the long run, after all adjustments have occurred, an increase in demand causes equilibrium

Gemiola [76]

Spike before falling to the equilibrium level

4 0

2 years ago

Chris Cole is a salesperson for Green Scene Lawn Care products. Chris' job requires him to sell Green Scene products, but he is

AVprozaik [17]

Answer:

A) True

Explanation:

Multilevel marketing is used by companies that engage in direct sales marketing and where each new salesperson or distributor must recruit more sales people to expand their activities. Some of the most famous multilevel marketing firms in the US are Avon and Herbalife.

The salesperson or distributor earns a fraction of the sales commissions that his/her recruited sales people sell. It is called the distributor's downline, and is shaped like a pyramid. In some countries this type of business is illegal because it works like a Ponzi scheme where new salespeople are recruited every time and in order to start working they must buy a certain amount of products. So a large percentage of the sales are made to other salespeople instead of customers.

5 0

2 years ago

Amount Number of units sold 11,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative exp

german

Traditional income statement : Net operating income $47,000

Contribution income statement : Net operating income $25,000

1.

Traditional Income Statement

Sales (11,000 x $16) $176,000

Cost of goods sold

(9,000 + 87,000 - 25,000) ($71,000)

Gross Margin 105,000

Selling and administrative expenses:

Selling expense

(11,000 x 1) + 22,000 $33,000

Administrative expense

(11,000 x 1) + 14,000 $25000

Net operating income $47,000

2.

Contribution format income statement

Sales $176,000

Variable expenses:

Cost of goods sold 71,000

Selling expense 11,000

Administrative expense 11,000 ($93,000)

Contribution Margin $83,000

Fixed expenses:

Selling expense 33,000

Administrative expense 25,000 (58,000)

Net operating income $25,000

Learn more about preparation of income statement here : brainly.com/question/24498019

3 0

2 years ago

Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicate

Varvara68 [4.7K]

Answer:

Healthy Beverage Inc.

a) Differential Analysis

1) Continue Fruit Cola (Alt. 1)

Sales $12,750,000

Cost of goods sold 8,500,000

Gross profit $4,250,000

Operating expenses 6,000,000

Loss from operations ($1,750,000)

2) Discontinue Fruit Cola (Alt. 2)

Differential Effect on Income (Alternative 2):

Fixed costs:

Cost of goods sold $2,125,000

Operating expenses 900,000

Income (Loss) ($3,025,000)

b. Should Fruit Cola be retained ?

The production and sale of the Fruit Cola should be continued. Discontinuing it would not save the company the incurrence of the fixed cost.

Explanation:

Differential analysis is a managerial accounting technique for analyzing the different costs and benefits that would arise from alternative solutions to a particular problem.

In the above scenario, discontinuing the production and sale of Fruit Cola would not save the company the fixed costs, so the product should be continued. It is not the product that is causing the net loss but allocated fixed costs. Fixed cost is a sunk cost that is not relevant in differential analysis type of decision making.

5 0

2 years ago

A company's current sales are $300,000 and fixed expenses total $225,000. The contribution margin ratio is 30%. The company has

jeka57 [31]

Answer:

$6,000

Explanation:

The net operating income will increase by $6,000;

$70,000*30%-$15,000=$6,000

As the CM ratio is 30% and $15,000 are fixed expenses,net result will be increase in net operating income.

7 0

3 years ago