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Sav [38]
4 years ago
10

The information system of Carlsbad Bottle Inc. is deemed to be 90 percent reliable. A major threat in the procurement process ha

s been discovered, with an exposure of $300,000. Two control procedures are identified to mitigate the threat. Implementation of control A would cost $18,000 and reduce the risk to 4 percent. Implementation of control B would cost $10,000 and reduce the risk to 6 percent. Implementation of both controls would cost $26,000 and reduce the risk to 2.5 percent. Given the information presented, and considering an economic analysis of costs and benefits only, which control procedure(s) should Carlsbad Bottle choose to implement?
Business
1 answer:
Harman [31]4 years ago
6 0

Answer: B

Explanation:

Control. Benefits. Cost. Net

A. (96/100*300,000)

288,0000.( 18,000.) 270,000

B. ( 94/100*300,000)

282,0000. (10,000) 272,000

C 97.5/100*300,000

292,500 (26,000) 266,500

The cost benefits analysis compares the cost to the benefits to be derived from a project and chosed the project with the highest benefits.

The reduction in the exposure means the reduced percentage is a benefit and the amount spent is a cost, subtracting the cost from the benefits gives us net benefits and the project with the highest net benefits is chosen for implementation.

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5 0
4 years ago
Read 2 more answers
A treatment plant has three primary clarifiers at 60 ft in diameter with side water depths of 9 ft. The inboard weirs are set at
Vikki [24]

Answer:

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Explanation:

5 0
3 years ago
Burberry is pursuing a focused differentiation strategy aimed at high-end luxury customers. However, the company is also employi
Elodia [21]

Answer:

Burberry is pursuing an umbrella branding strategy

Explanation:

Based on the scenario being described it seems that Burberry is pursuing an umbrella branding strategy. This type of strategy focuses on having a single brand name for the sale of two or more related products with different specs. Which Burberry is doing by having separate category of items made specifically for different target populations, such as entry-level price point items and couture items, even though they are all under the Burberry brand.

3 0
3 years ago
You purchased XYZ stock at $50 per share. The stock is currently selling at $80. You expect the stock price to go up, but not 10
Anton [14]

Answer:

"Stop-loss order" is the right answer.

Explanation:

According to the question,

Purchase price,

= $50

Current selling price,

= $80

Current gains,

= $30

  • Investors begin to give their earnings if somehow the market capitalization begins to fall beneath $80. In advance to minimize this, we need to set a purchase requisition of $80 for stop-loss.
  • So whenever the market decreases beyond $80, with us investments are traded, and thereby the existing profits of $30 have been safeguarded.

Thus, the above is the correct explanation.

4 0
3 years ago
A set of strategies and activities that influences how we conduct business, the clothes we wear, where we live, and how we spend
professor190 [17]

Answer:

Marketing

Explanation:

This is exactly what you do in marketing.

5 0
2 years ago
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