A hardware company sells a lot of low-cost, high volume products. For one such product, it is equally likely that annual unit sales will be low or high. If sales are low (60,000), the company can sell the product for $10 per unit. If sales are high (100,000), a competitor will enter and the company will be able to sell the product for only $8 per unit. The variable cost per unit has a 25% chance of being $6, a 50% chance of being $7.50, and a 25% chance of being $9. Annual fixed costs are $30,000. a. Use simulation to estimate the company’s expected annual profit. b. Find a 95% interval for the company’s annual profit, that is, an interval such that about 95% of the actual profits are inside it. c. Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company’s annual profit for this scenario. d. Can you conclude from the results in parts a and c that the expected profit from a simulation is equal to the profit from the scenario where each input assumes its expected value? Explain.
Answers: 2
Business, 22.06.2019 08:30
In risk management, what does risk control include? a. risk identification b. risk analysis c. risk prioritization d. risk management planning e. risk elimination need this answer now : (
Answers: 3
Business, 22.06.2019 10:50
Melissa is a very generous single woman. before this year, she had given over $11,400,000 in taxable gifts over the years and has completely exhausted her applicable credit amount. in the current year, melissa gave her daughter riley $100,000 and promptly filed her gift tax return. melissa did not make any other gifts this year. how much gift tax must riley pay the irs because of this transaction?
Answers: 2
Business, 22.06.2019 15:40
As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage
Answers: 1
Business, 22.06.2019 18:30
Health insurance protects you if you experience any of the following except: a: if you have to be hospitalized b: if you damage someone's property c: if you need to visit a clinic d: if you can't work because of illness
Answers: 2
A hardware company sells a lot of low-cost, high volume products. For one such product, it is equall...
Mathematics, 05.01.2021 01:10
Mathematics, 05.01.2021 01:10
Mathematics, 05.01.2021 01:10
English, 05.01.2021 01:10
English, 05.01.2021 01:10
Mathematics, 05.01.2021 01:10
Mathematics, 05.01.2021 01:10
English, 05.01.2021 01:10
Computers and Technology, 05.01.2021 01:10
English, 05.01.2021 01:10
Advanced Placement (AP), 05.01.2021 01:10
Mathematics, 05.01.2021 01:10