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
Komok [63]
3 years ago
11

MacDonald​ Products, Inc., of​ Clarkson, New​ York, has the option of ​(a) proceeding immediately with production of a new​ top-

of-the-line stereo TV that has just completed prototype testing or ​(b) having the value analysis team complete a study. If Ed​ Lusk, VP for​ operations, proceeds with the existing prototype​ (option a), the firm can expect sales to be 100 comma 000 units at ​$610 ​each, with a probability of 0.77 and a 0.23 probability of 70 comma 000 at ​$610. ​If, however, he uses the value analysis team​ (option b), the firm expects sales of 85 comma 000 units at ​$720​, with a probability of 0.74 and a 0.26 probability of 70 comma 000 units at ​$720. Value​ engineering, at a cost of ​$120 comma 000​, is only used in option b. Which option has the highest expected monetary value​ (EMV)? The EMV for option a is ​$ nothing and the EMV for option b is ​$ nothing. ​Therefore, option ▼ a b has the highest expected monetary value. ​(Enter your responses as integers​.)
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
4 0

Answer:

The EMV for option a is ​$5,679,100

The EMV for option b is ​$5,719,200

Therefore, option b has the highest expected monetary value.

Explanation:

The EMV of the project is the Expected Money Value of the Project.

This value is given by the sum of each expected earning/cost multiplied by each probability.

So

a) proceeding immediately with production of a new​ top-of-the-line stereo TV that has just completed prototype testing.

There are these following probabilities:

77% probability of selling 100,000 units at $610 each.

23% probability of selling 70,000 units at $610 each.

So

EMV = 0.77*E_{1} + 0.23*E_{2}

E_{1} = 100,000*610 = 6,100,000

E_{2} = 70,000*610 = 4,270,000

EMV = 0.77*E_{1} + 0.23*E_{2} = 0.77*(6,100,000) + 0.23*(4,270,000) = 5,679,100

​(b) having the value analysis team complete a study.

There are these following probabilities:

74% probability of selling 85,000 units at $720.

26% probability of selling 70,000 units at $720.

The cost of value engineering, at 120,000. So this value is going to be dereased from the EMV.

EMV = 0.74*E_{1} + 0.26*E_{2} - 120,000

E_{1} = 85,000*720 = 6,120,000

E_{2} = 70,000*720 = 5,040,000

EMV = 0.74*E_{1} + 0.26*E_{2} - 120,000 = 0.74*6,120,000 + 0.26*5,040,000 - 120,000 = 5,719,200

You might be interested in
1. Which of the following questions would be permissible to ask during an interview with a candidate who
Marina CMI [18]

Answer:

I would say the first one

Explanation:

beacuse you do need to know if there is anything that could be hard for them to do and make it where they cant do there job it also might depnd on the job of what you would ask them but I would say the fist one so it gets to the point and isent rude hope this helps :)

7 0
3 years ago
Read 2 more answers
Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.25 per
garik1379 [7]

Answer:

1,065 U

Explanation:

Materials Price Variance = Actual Quantity Purchased * (Standard Price – Actual Price)Actual Price= Total Cost / Quantity Purchased

= ($27,690 /21,300 )=$ 1.3

=21,300* [$1.25 – $1.3]

=21,300*0.05

=1,065 U

During May, the materials price variance for part XBEZ52 was 1,065 which is Unfavourable because the actual

purchase price is higher than standard.

5 0
2 years ago
Statutes that are enacted to protect the public are called licensing statutes. Generally, unlicensed persons cannot recover paym
guapka [62]

Answer:

If a statute is silent on this point, enforcement depends on whether it is a(n) REGULATORY statute or a revenue-raising statute.

Explanation:

Regulatory statutes regulate practitioners, e.g. doctors, constructors, real estate brokers, dentists, etc., and its main purpose is to protect the general public. This statues are state laws meant to regulate certain professions that may be considered sensitive or hazardous. E.g. a person that pretends to be a doctor can severely injure a patient or even kill him/her. A person that pretends to be a real estate broker can be committing fraud against his/her clients.  

8 0
3 years ago
Read 2 more answers
A key objective of the _____ was to restore public faith and trust in the securities markets battered by the stock market crash
weeeeeb [17]
It would be the Banking act of 1933; made so that banks would be unable to invest their money so that people would have more faith in them.
3 0
3 years ago
Which of the following is true of a person with a high credit score?
dsp73
Your credit score is used as indicator of your creditworthiness. This means how likely you are to pay off debts and other financial obligations. A person with a high credit score should have a high credit worthiness, or likelihood to be responsible with credit.

A person who pays bills on time has demonstrated that she takes her financial obligations seriously, and this trait positively affects her credit score. The answer is A. 

B and C would most likely be associated with a person with a low credit score, since they demonstrate lower creditworthiness. 
5 0
2 years ago
Read 2 more answers
Other questions:
  • If your currently scanning speed is 947 items a hour and your target is 1,000 how many items do you need to scan a hour
    12·1 answer
  • Tax cuts increase consumer incentive to save. which determinant(s) of aggregate demand cause the change?
    10·1 answer
  • Suppose that mr. green jeans sells $5,000 of wheat to big ben bakery. big ben uses the wheat to make flour and then hamburger bu
    7·1 answer
  • How is studying microeconomics significant​
    14·1 answer
  • What is the current price for a bond worth $4,000 that has a price quote of 50?
    8·1 answer
  • A country that exports less than it imports will end up having to borrow money
    13·1 answer
  • Wizard Corp. needs to take out a one-year bank loan of $600,000 and has been offered loan terms by two different banks. One bank
    9·1 answer
  • Mrs. Jones owns stock from which she received $3,000 in cash dividends. Mr. Jones owns stock from which he received $400 in cash
    7·1 answer
  • You are bullish on Telecom stock. The current market price is $40 per share, and you have $8,000 of your own to invest. You borr
    11·1 answer
  • (Chapter Supplement) Under the gross method of recording sales discounts discussed in this chapter, is the amount of sales disco
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!