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Orlov [11]
4 years ago
13

The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The o

wner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 3% chance of incurring 350 dollar damage, 5% chance of incurring 250 dollar damage, and 12% chance of incurring 100 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value
Business
1 answer:
Margarita [4]4 years ago
6 0

Answer:

$35

Explanation:

The computation of the expected value is shown below;

As we know that  

= Estimated chance of damage percentage × dollar damage + Estimated chance of damage percentage × dollar damage + Estimated chance of damage percentage × dollar damage

= 3% × $350 + 5% × $250 + 12% × $100

= $10.5 + $12.5 + $12

= $35

We simply multiplied the estimated chance of damage percentage with the dollar damage and then added the other two so that the expected value could arrive

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Transfer prices are _____. A. costs of the segment producing the product or service B. revenues of the segment acquiring the pro
Arlecino [84]

Answer: the correct answer is D. none of these answers is correct.

Explanation: A transfer price exists for accounting purposes when diverse divisions on a multy entity company are in charge of their own revenues.

6 0
4 years ago
Bobby is part of the marketing team of a company that sells various Bluetooth devices. The target customers for this product bel
Shtirlitz [24]

Answer:

BUDGET

Explanation:

Since Bobby wants to set aside money for each of the advertising media based on its relative potential, the component of the advertising plan that would help Bobby allocate money to the different media according to the finances available is budget.

The budget component of the advertising plan is where all costs related to the advertising activity are laid out, stating when they are due and how they will be met

6 0
3 years ago
Total costs for Locke​ & Company at 140 comma 000 units are $ 289 comma 000​, while total fixed costs are $ 195 comma 000. T
Kobotan [32]

Answer: Total variable costs at a level of 260,000 units would be $1,74,460.

Explanation:

Total cost at 140,000 units = $249,000 and

Fixed cost = $195,000

Number of units = 140,000

∴ Total variable cost at 140,000 = Total cost - Total fixed cost

                                                      = 249000 - 195000

                                                       = $94000

Variable cost per unit = \frac{Total\ variable\ cost}{Number\ of\ units}

= \frac{94000}{140000}

= $0.671 per unit

Hence,

Total variable costs at a level of 260,000 units would be = Variable cost per unit × Number of units

= 0.671 × 260,000

= $1,74,460

5 0
3 years ago
Which of the following is not a reason to invest excess cash in temporary investments? earn interest revenue receive dividends r
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Investors for invest in cash due to its insufficient value
5 0
3 years ago
As part of the initial investment, a partner contributes equipment that had originally cost $100,000 and on which accumulated de
deff fn [24]

Answer:

Explanation:

$100,000 debit to the Equipment asset account because you are recording the actual original cost of the equipment (as is required by the Cost Principle of Depreciation). You should also credit the Accumulated Depreciation: Equipment account for $75,000 to show that the equipment has already depreciated for this amount.

3 0
4 years ago
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