Master Glue Hairspray, Inc. contracts to purchase 100 umbrellas with its logo and slogan, "A spray a day keeps the rain and wind
1 answer:
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Answer: $12
Explanation:
In selling the obsolete goods, the company will incur Variable Marketing costs and the alternative will be to throw the goods away.
The relevant costs they will incur are therefore the Variable Marketing costs alone.
The lowest amount that a company should accept for a good is the price that equals it's cost so that they may at least Break-Even.
Seeing as the Variable Marketing Costs are the only relevant cost then the lowest they should accept is the Variable Marketing Costs of $12.
Answer:
(a) The probability that the order will include a soft drink and no fries is 0.45.
(b) The probability that the order will include a hamburger and fries is 0.48.
Explanation:
Let the events be denoted as follows:
S = an order of soft drink
H = an order of hamburger
F = an order of french fries.
Given:
P (S) = 0.90
P (H) = 0.60
P (F) = 0.50
(a)
It is provided that the event of ordering a soft drink and fries are independent.
If events A and B are independent then the probability of event (A ∩ B) is:
Compute the probability that the order will include a soft drink and no fries as follows:
Thus, the probability that the order will include a soft drink and no fries is 0.45.
(b)
It is provided that the conditional probability that a customer will order fries given that he/she has already ordered a hamburger as, P (F|H) = 0.80.
The conditional probability of an event B given another event A has already occurred is:
Compute the probability that the order will include a hamburger and fries as follows:
Thus, the probability that the order will include a hamburger and fries is 0.48.