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Tatiana [17]
3 years ago
9

Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not i

nclude % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
Business
1 answer:
Maksim231197 [3]3 years ago
5 0

Question:

Jackson Corporation has expected return of 12% during recession, 20% during normal, and 40% during boom state of economy. Probability of recession, normal and boom states of economy is 0.25, 0.50, and 0.25 respectively. Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)

Answer:

23.00

Explanation:

Given:

For Jackson Corporation:

Expected return during recession = 12%

Expected return during normal = 20%

Expected return during boom = 40%

For Economy:

Probability of recession = 0.25

Probability of normal = 0.50

Probability of boom = 0.25

Required:

Find the expected return for Jackson Corporation.

To find expected return, use the expression below:

Expected return = (Probability of Recession * Returns at Recession) + (Probability of Normal * Returns at Normal) + (Probability of Boom * Returns at Boom)

Using the expression above, expected return for Jackson corporation will be calculated as:

Expected return = (25×12%)+(0.50×20%)+(0.25×40%)

= 3 + 10 + 10

= 23%

Expected return for Jackson corporation is 23.00

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The total costs of collating 1,700,000 per month With student help is $3,060

The Total costs of collating 500,000 per month With the collating machine is $1,575

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Explanation:

A. In order to calculate the total costs of collating 500,000 and 1,700,000 per month With student help we would have to make the following calculations:

total costs of collating 500,000 per month With student help=(number of copies to be collating/average of copies per hour)*price per hour

total costs of collating 500,000 per month With student help=(500,000/5,000)$9

total costs of collating 500,000 per month With student help=$900

total costs of collating 1,700,000 per month With student help=(1,700,000/5,000)*$9

total costs of collating 1,700,000 per month With student help=$3,060

In order to calculate the total costs of collating 500,000 and 1,700,000 per month With the collating machine we would have to make the following calculations:

total costs of collating 500,000 per month With the collating machine= lease and operating costs+(number of copies to be collating/units collated)*additional price

Total costs of collating 500,000 per month With the collating machine= $1,550+(500,000/1,000)*$0.05

Total costs of collating 500,000 per month With the collating machine= $1,575

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Total costs of collating 1,700,000 per month With the collating machine= $1,635

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the monthly volume at which the automatic process becomes preferable to the manual process is cost with students help=cost with collating machine

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$8,750x=$7,750,000,000

x=885,714

The monthly volume at which the automatic process becomes preferable to the manual process is 885,714

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