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
scoray [572]
3 years ago
10

Farm workers in Oaks Farmville face a 1/85 probability of death at work and each of them receives a yearly wage of $159,106. Far

m workers in Valley Farm face a 1/127 of death at work. Assume that both kinds of job require the same level of skills, effort and that all workers have the same preferences and tastes. The values of an statistical life is computed to be $1,262,558. How much should the workers in the less risky job should get paid
Business
1 answer:
Lostsunrise [7]3 years ago
7 0

Answer:

$154,182.02

Explanation:

Probability of Farm workers in ( O.F ) facing death at work = 1/85 = 0.012

Probability of Farm workers in ( V.F ) facing death at work = 1/127 = 0.008

Value of a statistical life = $1,262,558

<u>Determine how much  the workers in less risky job should get paid </u>

The less risky job is working in Valley farm(V.F ) with a death probability of = 1/127 = 0.008

The more risky job is working in valley farm ( probability = 1/85 = 0.012 )

Yearly wage of risky job = $159106

payment for less risky job can be calculated using the relation below

statistical life = ( cost incurred to reduce risk) / ( percentage of risk to death reduced )  ---------------- ( 1 )

cost incurred to reduce risk =  yearly wage to high risk workers - yearly wage to low risk workers

 =  159106 - X

percentage of risk to death reduced = (probability of death to high risk workers) - ( probability of death to low risk worker )

= 1/85 - 1/127 = 0.0039

back to relation 1

1262558 = ( 159106 - X ) / ( 0.0039)

159106 - X = 1262558 ( 0.0039 )

hence X ( amount to be paid to workers in the less risky job )

X = 159106 - 4923.9762 = $154,182.02

You might be interested in
Nancy sold her personal residence on June 30 of this year under an agreement in which the real estate taxes were not prorated be
meriva

Incomplete question. Here's the full question:

<em>Nancy paid the following taxes during the year: </em>

<em>Tax on residence (for the period from March 1 through August 31) =$5,250</em>

<em>State motor vehicle tax (based on the value of the personal use automobile) =$430</em>

<em>State sales tax =$3,500</em>

<em>State income tax =$3,050</em>

<em>Nancy sold her personal residence on June 30 of this year under an agreement in which the real estate taxes were not prorated between the buyer and the seller.</em> What amount qualifies as a deduction from AGI for Nancy? a. $9,180b. $9,130c. $7,382d. $5,382 e. None of the above

Answer:

<u>c. $7,328</u>

Explanation:

Remember, Nancy <em>transferred</em> ownership of her personal residence on June 30, but she received tax on residence for 2 extra months (July and August).

The amount that qualifies for tax deduction therefore is;

121 days (Four months of her stay) / 184 days (six months period) × $5,250

+

$430

+

$3,500] = $7,382.

She likely deducts from the state sales tax with a higher amount than from the state income tax.

4 0
3 years ago
Which of the following statements represent the appropriate directional relationships between the concepts of inherent risk, con
luda_lava [24]

Answer:

b. As inherent risk goes up, audit risk goes down.

Explanation:

Inherent risk is the risk which is present before applying any control, and audit risk is the that the auditor expresses inappropiate audit opinion when the financial statements are materialy misstated.

Thus, when the inherent risk is <em>high</em>, the auditor keeps the audit risk at <em>low </em>level to perform more subtantative procedures.

8 0
3 years ago
It is possible to use a decision making process for any decision.
loris [4]
I think so, but there may be some exceptions--if any.
6 0
3 years ago
Read 2 more answers
The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocat
Dahasolnce [82]

Answer:

Materials handling Allocation= $27.5

Explanation:

Giving the following information:

Each chair consists of 10 separate parts totaling $165 direct materials and requires 5.0 hours of machine time to produce.

Materials handling= $2.75 per part

Machining=  $5.00 per machine hour

Assembling= $1.50 per part

Packaging= $3.75 per finished unit

Material Handling allocation base is: Number of parts.

Allocation= 10 parts* $2.75= $27.5

4 0
3 years ago
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,400,000. Also, at year-
Ksenya-84 [330]

Answer:

The Sales will increase by $350,000 (2000,000 * 17.5%)

Explanation:

As we know that,

Self Supporting Growth Rate = Return on Equity * (1 - Payout Ratio) ...Eq1

Here

Payout ratio given is 50%

and

Return on Equity =  35% <u>(Step 1)</u>

By putting values in Eq1, we have:

Self Supporting Growth Rate = 35% * (1 - 50%)

Self Supporting Growth Rate = 17.5%

Which means that Sales will increase by $350,000 (2000,000 * 17.5%) which is 17.5%.

<u>Step 1: Find Return on Equity</u>

We know that:

Return on Equity = Net Income / Equity ..............Eq2

As we are not given value of Net Income we can not calculate the value of return on equity. But there is another way that we can calculate by simply multiplying and dividing by sales on Left hand side of the Eq2 equation.

Return on Equity = Net Income / Equity          * Sales / Sales

By rearranging, we have:

Return on Equity = Net Income / Sales  *   Sales / Equity

Now here,

Net Income / Sales  = Profit Margin

By putting this in the above equation, we have:

Return on Equity = Profit Margin  * Sales / Equity

Here

Profit Margin is 7% given in the question.

Sales were $2,000,000

And  

Equity is $400,000 <u>(Step 2)</u>

By putting values, we have:

Return on Equity = 7%  * $2,000,000 / $400,000

Return on Equity = <u>35%</u>

<u>Step 2. Find Equity</u>

Equity = Assets - Liabilities

Here,

Assets are worth $1,400,000

Liabilities are standing at $1,000,000 which includes only current liabilities because company doesn't have any long term borrowings

By putting the values, we have:

Equity = $1,400,000 - $1,000,000 = <u>$400,000</u>

<u>Brother, don't forget to rate the answer.</u>

5 0
3 years ago
Other questions:
  • 6. Calculating a country's population growth rate takes into account all of the
    6·2 answers
  • Consider the following timeline detailing a stream of cash​ flows: The timeline starts at Date 0 and ends at Date 4. The cash fl
    14·1 answer
  • Nathan owns a quick-lube oil service station. He wants to understand whether his customers are sensitive to price and if he shou
    8·1 answer
  • Producer surplus is equal to
    15·1 answer
  • Mariam has a stack of about 20 articles that may or may not be appropriate for her essay. should she skim, scan, or read those a
    11·2 answers
  • Which of the following is needed to implement the marketing concept?
    6·1 answer
  • Imagine a situation in which there is a president who prefers less environmental regulation of business. She orders the EPA to e
    8·2 answers
  • Tan Corporation issued $600,000,000 of 7% bonds on November 1, 2015, for $644,636,000. The bonds were dated November 1, 2015, an
    9·1 answer
  • The graph shows the price of a good compared to the quantity demanded and the quantity supplied. A graph titled Price Controls G
    7·1 answer
  • olmstead industry has 9.40% coupon bonds outstanding with a price of $1,023.58. interest is paid semiannually and the yield to m
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!