Business, 15.08.2020 17:01, bhaven2005
A company is considering whether to market a new product. Assume, for simplicity, that if this product is marketed, there are only two possible outcomes: success or failure. The company assesses that the probabilities of these two outcomes are 0.4 and 0.6, respectively. If the product is marketed and it proves to be a failure, the company will lose $450,000. If the product is marketed and it proves to be a success, the company will gain $760000. The company is also considering whether to survey prospective buyers of this new product. The results of the consumer survey can be classified as favorable, neutral, and unfavorable. In similar cases where proposed products proved to be market successes, the likelihoods that the survey results were favorable, neutral, and unfavorable were 0.6, 0.3, and 0.1, respectively. In similar cases where proposed products proved to be market failures, the likelihoods that the survey results were favorable, neutral, and unfavorable were 0.1, 0.2, and 0.7, respectively. The total cost of administering this survey is C dollars. Finish the decision tree for this problem and answer the following questions: Partial Tree a) What is the optimal decision(s)
Answers: 2
Business, 21.06.2019 22:30, indiareed0orv5ul
What two elements normally must exist before a person can be held liable for a crime
Answers: 1
Business, 22.06.2019 11:40, rmcarde4432
Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?
Answers: 1
Business, 22.06.2019 16:00, bossboybaker
Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?
Answers: 1
Business, 22.06.2019 20:00, mackle34
Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?
Answers: 1
A company is considering whether to market a new product. Assume, for simplicity, that if this produ...
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