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Crank
3 years ago
5

Dahlia can earn​ $60,000 a year working at a relatively safe​ job, or​ $65,000 a year working at a riskier job. The probability

of death from working at the relatively safe job is​ 1/5,000, and the probability of death from working at the riskier job is​ 1/1,000. Using the compensating differential approach and the above​ information, what is the value of​ Dahlia's life?A. ​$2 millionB. ​$2.5 millionC. ​$6.25 millionD. ​$25 million
Business
1 answer:
guajiro [1.7K]3 years ago
5 0

Answer:

C) ​$6.25 million

Explanation:

Compensating wage differentials are paid to workers so that they accept tasks that are considered dangerous or hazardous.

A worker’s utility function is:

Utility = f (w, risk of injury)

Dahlia's safe job utility function = f(60000, 0.0002)

Dahlia's riskier job utility function = f(65000, 0.001)

A 400% increase in risk will increase Dahlia's salary by $5,000,

When you are using the compensation differential approach, you can determine the value of a life by dividing the compensating differential by the increased chance of death.

($65,000 - $60,000) / (1/1000 - 1/5,000) = $5,000 / 0.0008 = $6,250,000

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Blossom Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at co
horsena [70]

Answer:

$1,012,696

Explanation:

The computation is shown below:

At Cost method:

Merchandise available for sale is :

= Beginning inventory + Purchases + Fright-in

= $403,500 + $3,608,000 + $169,500

= $4,181,000

At Retail method:

Merchandise available for sale:

= Beginning inventory + Purchases + Markups

= $604,000 + $5,393,600 + $424,000

= $6,421,600

Now

Ending inventory at retail is

= Retail  - Markdowns - Net sales

= $6,421,600 - $0 - $4,866,000

= $1,555,600

Now

Cost to retail ratio is

= $4,181,000÷ ($4,866,000 + $1,555,600)

= 65.10%

And finally the ending inventory at cost is

= $1,555,600 × 65.10%

= $1,012,696

8 0
3 years ago
Counselors of Savannah purchased equipment on January ​1, 2017​, for $43,000.
GalinKa [24]

Answer:

Book value by December 31,2018=$26,000

gain on the sale by December 31, 2018=$1,200

Explanation:

The expression for the accumulated depreciation is as follows;

depreciable cost=Acquisition cost-residual value

where;

acquisition cost=$43,000

residual value=$500

replacing;

depreciable cost=43,000-500=$42,500

depreciable cost=$42,500

The annual depreciation can be expressed as;

annual depreciation=depreciable cost/estimated life

where;

depreciable cost=$42,500

estimated life=5 years

replacing;

annual depreciation=42,500/5=8,500

annual depreciation=$8,500

Accumulated depreciation after 2 years=annual depreciation×2=(8,500×2)=$17,000

Book value=acquisition cost-accumulated depreciation

where;

acquisition cost=$43,000

accumulated depreciation=$17,000

replacing;

Book value=43,000-17,000=$26,000

net gain/loss=sale-book value

net gain/loss=27,200-26,000

gain on the sale by December 31, 2018=$1,200

3 0
3 years ago
In 1 to 2 paragraphs, analyze how a person's ethics or values might affect his performance on the job.
defon

Answer:

Explanation:

This question puts together two different perspectives based on different goals and metrics: economics and ethics. In economics, self interest is the driving force and productivity is one of the metrics used by managers and shareholders in measuring their profit making. In ethics, doing good for people and creating social value is the goal. The results cannot be measured anymore in units of productivity.

Peter Drucker in his famous book "Management: tasks, responsibilities, practices" says : "To know what a business is we have to start with its purpose. Its purpose must lie outside of the business itself. In fact, it must lie in society since business enterprise is an organ of society. There is only one valid definition of business purpose: to create a customer." That means to create value for society and not to maximize the profit.

I shall add a recent message sent by Richard Branson - the creator of Virgin Group - in his book "Screw business as usual" : Doing good can help improve your prospects, your profits and your business; and it can change the world." But with a condition: in that firm to exist an organizational culture based on positive values and not on profit maximization. In conclusion, ethics may impact positively on performance if and only if there is a managerial philosophy based on ethics and not on profit maximization, and on value creation. In this well-defined context profit and profitability are consequences and not driving forces of the whole business.

5 0
3 years ago
You are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for t
liraira [26]

Answer:

Total PV= $15,103.49

Explanation:

Giving the following information:

Cf1= 4,500

Cf2= 5,700

Cf3= 8,000

Discount rate= 9%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= FV/(1+i)^n

Cf1= 4,500/(1.09)= $4,128.44

Cf2= 5,700/1.09^2= $4,797.58

Cf3= 8,000/1.09^3= $6,177.47

Total PV= $15,103.49

3 0
3 years ago
You need to announce two promotions. Which of these options would most likely be both efficient and effective
torisob [31]

The correct option are B and D.

B. Send an email to everyone in the unit

D. Announce the promotions at a meeting

These options would most likely be both efficient and effective for promotions in the firm for employee.

<h3>What is communication skills?</h3>

People with good communication skills can understand others and be understood. These skills need a variety of skills, including listening, communicating, watching, and having empathy.

Communication is "an apparent response to the unpleasant divides between self and other, private and public, and inner thought and outer world,

<h3>What are the 7 types of business communication?</h3>

We have detailed the benefits and drawbacks of each style of corporate communication, as well as suggestions for effective communication in each situation.

  • Upward communication.
  • Downward communication.
  • Lateral communication.
  • External communication.
  • Face-to-face communication.
  • Electronic communication.
  • Written communication.

To know more about communication skills visit:

brainly.com/question/23389907

#SPJ4

I understand that the question you are looking for is:

Communication skills refer to a manager’s ability to effectively convey ideas and information to others and to effectively receive ideas and information from others. This exercise focuses on communication skills as they involve deciding how to best convey information to others.

Exercise Background

Assume that you are a middle manager for a large electronics firm. People in your organization generally use one of three methods to communicate with one another. One common method is verbal communication, either face-to-face or by telephone. Surprisingly, people also still use a lot of written communication in the form of memos, reports, letters, and other documentation. And, of course, there is also a lot of digital communication such as email and direct messaging.

During a typical day you receive and send a variety of messages and other communication, sometimes using only a single method of communication but often using some combination of methods. The questions that follow ask you to select one or more methods that would be most effective for communicating specific kinds of information.

Use your communication skills to answer the following questions.

2) You need to announce two promotions. Which of these options would most likely be both efficient and effective? Check all that apply.

A. Announce the promotions using social media

B. Send an email to everyone in the unit

C. Announce the promotions individually to your employees as you see them

D. Announce the promotions at a meeting

8 0
1 year ago
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