Given:
Sales Revenue = 150,000
ROI = 12%
turnover = 3
ROI = Margin * Turnover Margin
12% = Margin * 3
12%/3 = Margin
4% = Margin
Margin = Net Operating Income / Sales
4% = Net Operating Income / 150,000
4% * 150,000 = Net Operating Income
6,000 = Net Operating Income
Using the Hypergeometric distribution principle, the probability of X = 3 in the function is 0.4396
Defining an hypergeometric distribution function :
The parameters given :
- N = 15
- r = 4
- X = 3
- n = 10
Using Combination :
Recall : nCr = n! ÷ (n-r)!r!
Using a calculator :
Therefore, the probability of X = 3 in the hypergeometric function is 0.4396 (rounded to 4 decimal places).
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Explanation:
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Answer:
True
Explanation:
When deciding whether to accept special orders, it is important that opportunity costs is considered by managers.
It helps managers to make a good choice and not regret later.
When deciding whether to accept special orders, it is important to compare and calculate what extra revenues that will be made against the extra costs that will be incurred.
Opportunity costs is actually a hypothetical cost which is incurred due to going for an alternative over the other available.
