Answer:
Member B: Works 10 hours per week at $5.85 per hour
Member D: Works 9 hours per week at $6.35 per hour
<span>A manufacturer with a product in the decline stage of the product life cycle would most likely decide to let current stocks of the product run out if there is reason to believe that there will be a small but continuing demand for the product.
When there is a decline in demand of a product, an organization most likely will stop producing as much of the item to see if sales pick up. If they do not pick up, they will probably let everything run out so that they aren't in the hole with their product any longer and producing a product that is not selling. </span>
Answer:
See Below
Explanation:
Expected value is the sum of the products of the probability and payoff of each.
<u>Wager 1:</u>
probability of heads and tails, both is 0.5
Win = 440
Loose = 110
So,
Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165
<u>Wager 2:</u>
Similar to wager 1
Win = 770
Loose = 220
So,
Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275
2nd wager is better, in this sense.
Answer:
Teller's break-even point in sales dollars for 2012 is $400,000
Explanation:
The formula to compute the break even point in dollars is shown below:
Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)
where,
Fixed expense is $120,000
And, the contribution ratio equals to
= (Contribution per unit) ÷ (sales per unit) × 100
where,
Contribution is = Selling price - variable cost per unit
= $300 - $210
= $90 per unit
Now put the values to the above formula
So, the ratio would be
= ($90 per unit) ÷ ($300 per unit) × 100
= 30%
Now put the values to the above formula
So, the value would be
= $120,000 ÷ 30%
= $400,000
Answer:
Risk of a bad investment
Explanation:
When an investor is calculating an investment's interest rate, he/she must include all brokerage commissions and fees
, inflation rate (interest rate must exceed the inflation rate) and the investor's opportunity cost.
Investors are risk adverse, which means that a risky investment should yield a higher return. That could be considered a rational investment rule, but it is not included in the calculation of the interest rate.
