1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
seropon [69]
3 years ago
7

6. A company estimates that .6% of its products will fail after the original warranty period but within a 5-year warranty period

, with a replacement of $450. If they offer a 5-year extended warranty for $60, what is the company’s expected value for each policy sold? (round to the penny)
Business
1 answer:
Nitella [24]3 years ago
4 0

Answer:

The answer is: $57.30

Explanation:

To determine the expected value of each warranty policy that was sold, we can use the following formula:

expected value = policy price - (probability of failure x cost of replacement)

expected value = $60 - (0.6% x $450)

expected value = $60 - $2.70 = $57.30

You might be interested in
What is large office​
gogolik [260]

Answer:

A large office can be found in big organisations with many clerical workers. An example of a large office is a bank. A factory could also be an example of a large office if it has more than ten people working in it. In a large office, work is divided among the many clerical workers.

3 0
2 years ago
Choosing to go to college over getting a job right out of high school is an example of a(n) _____.
AfilCa [17]

Answer: go to the national college this is what it is called NCCS

Explanation:

6 0
3 years ago
Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car Gwen 2
antoniya [11.8K]

Answer:

3. cannibalization

Explanation:

This term refers to the situation were sales or the market share of a product are reduced because another product is introduced by the same company.

5 0
3 years ago
Question 19 A company just starting in business purchased three merchandise inventory items at the following prices. First purch
Lunna [17]

Answer:

Answer is A. USD 80/-

Explanation:

Using FIFO costing, we get:

  • <u>Gross Profit = Sales - Cost of Goods Sold </u>

COGS (Cost of Goods Sold) for two units,

COGS = First purchase + Second purchase

COGS = $70 + $80

COGS = $150

Sales = $230

  • <u>Calculating the Gross Profit: </u>

GP (Gross Profit) = Sales - Cost of Goods Sold

GP = $230 - $150

GP = $80

7 0
3 years ago
Read 2 more answers
If a good is normal, then an increase in income will result in a(n) a. increase in the demand for the good. b. decrease in the d
andrew11 [14]

Answer:

a. increase in the demand for the good.

Explanation:

As we know that

In the case of normal goods, there is a positive relationship between the income and the quantity demand. If the income rises, the quantity demand is also rising and vice versa

But in the case of inferior goods, it shows an inverse relationship between the income and the quantity demand. If the income rises, the quantity demand is falling and vice versa

8 0
3 years ago
Other questions:
  • EZ Workout Inc. advertises Fit Step, an exercise machine, online. In its ads, EZ claims that the use of Fit Step measurably enha
    10·1 answer
  • Assume that the resort town of Ocean View passed a law imposing an extra tax on boardwalk food businesses that used plastic cups
    7·1 answer
  • A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determi
    15·1 answer
  • Order these loans from highest monthly payment to lowest monthly payment. (Enter 1 as your answer to designate loan with highest
    11·1 answer
  • Prepare journal entries for each of the following
    7·1 answer
  • Exercise 14-1 On January 1, Guillen Corporation had 90,000 shares of no-par common stock issued and outstanding. The stock has a
    10·1 answer
  • When a certain price control is imposed on this market, the resulting quantity of the good that is actually bought and sold is s
    13·1 answer
  • In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that
    9·1 answer
  • Billie Bradford worked for the Kentucky Department of Community Based Services (DCBS). One of Bradford’s co-workers, Lisa Stande
    9·1 answer
  • On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 in assets in exchange for i
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!