The expected value of buying this insurance policy is $50.
The expected value of buying the insurance policy is the weighted average of probabilities of the cost of the insurance and the cover if Jacob gets into an accident.
If Jacob gets into an accident and is covered, his payout will be:
= benefit - cost
= 10,000 - 750
= $9,250
The probability of this happening is 8%.
If Jacob does not get into an accident he would lose the $750 he paid in insurance premiums. The probability of this happening is:
= 100% - 8%
= 92%
The expected value of the insurance is:
= (probability of accident * payout if there is an accident) + (probability of no accident * payout if there is no accident)
= (8% * 9,250) + (92% * -750)
= $50
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Answer:
$134,300
Explanation:
From the question above, we are required to total amount of indirect manufacturing costs that was incurred by Norred corporation with the information that was provided
The first step is to calculate the total variable manufacturing overhead costs
= Variable manufacturing overhead × Units produced
= $1.60 per unit × 8,000 units
= $12,800
Therefore, the total amount of indirect manufacturing costs can be calculated as follows
= Total variable manufacturing costs + Fixed manufacturing overhead
= $12,800 + $121,500
= $134,300
Hence the total amount of indirect manufacturing costs is closest to $134,300
Answer:
a. The Bid/Ask spread is $0.03.
b. The statement is “False”.
c. The Bid/Ask spread at the time trade was executed is $0.02.
d. The Total Round-Trip Transaction Costs is $107.90 and the Bid/Ask spread is $0.09. It is important to have a lower commission charge. So the correct statement is “Statement C”.
Explanation:
Please check the file attached below to see the solution to given question
Answer:
Consolidation
Explanation:
Holding method is required for the parent company for financial reporting if the parent company owns 51 percent of more outstanding common stock in the subsidiary.
Here consolidate refers to the combining of total assets and liabilities of two or more entities into one so that it could be maintained as a one firm
Therefore for financial reporting consolidation is appropriate
External forces that affect the success of a business enterprise.
Opportunities and threats are part of a SWOT analysis where the opportunities are external forces that benefit or help the success of a business, whereas threats are external forces that hurt or hinder the success of a business. These forces are the opposite of the internal forces, strengths and weaknesses. Together, they form an analysis of a firm's competitive and comparative advantage in the current market.
