The Mighty Music Company produces and sells a desktop speaker for $290. The company has the capacity to produce 69,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $ 140 Product level costs $ 34 Facility level costs $ 24 The company has received a special order for 20,000 speakers. If this order is accepted, the company will have to spend $29,000 on additional costs to print a special logo. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order?

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?