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vladimir2022 [97]
3 years ago
13

An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result

in a profit of ​$60000. If the economy grows at a moderate​ pace, the investment will result in a profit of ​$10000. ​However, if the economy goes into​ recession, the investment will result in a loss of ​$60000. You contact an economist who believes there is a 30​% probability the economy will remain​ strong, a 60​% probability the economy will grow at a moderate​ pace, and a 10​% probability the economy will slip into recession. What is the expected profit from this​ investment?
Business
1 answer:
zmey [24]3 years ago
3 0

Answer:

Expected profit = $18,000

Explanation:

<em>The expected profit is the weighted average of all the possible profits associated with the different possible outcome weighted according to the probability</em>

Outcome              Profit         Probability      Prob ×  Profit

Strong            60,000    ×  30%          =    18,000

Growth              10,000    ×   60%        =    6,000

Recession       (60,000)   ×   10%        =     (6000)

Expected profit = 18,000 + 6000 + (6000) = $18,000

Expected profit = $18,000

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Answer:

Explanation:

The preparation of the income statement is presented below using the generally accepted accounting Principles (GAAP) :

Sales $176,000

Less: Cost of goods sold ($97,200)         ($54,000 + $43,200)

Gross margin $78,800

Less: Selling and administrative cost ($31,000)    ($17,200 + $13,800)

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Hence, we considered all the given information

8 0
2 years ago
At the beginning of the month, the Forming Department of Martin Manufacturing had 26,000 units in inventory, 30% complete as to
miskamm [114]

Answer:

  • Materials - 100,400
  • Conversion - 95,600

Explanation:

Equivalent Units = Units Completed and Transferred out + Ending Work in Progress.

Materials Equivalent Units

Ending Work in Progress = 90% * 16,000

= 14,400 units

Equivalent Units = 86,000 + 14,400

= 100,400 units

Conversion Equivalent Units

Ending Work in Progress = 60% * 16,000

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Equivalent Units = 86,000 + 9,600

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4 0
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Discussion topic
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Explanation:

for me I feel that if you put something on the line maybe like money or a huge deal. Then you put them together to work on it

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Exercise 05-14 Predicting sales and variable costs using contribution margin LO C2 Bloom Company management predicts that it wil
Stels [109]

Answer:

Explanation:

1. Fixed Costs = 160,000

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Total contribution desired = 324,000 [160,000+164,000]

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