Deciding whether or not to exhibit at particular boat show

Assignment Help Financial Management

Reference no: EM131844259

The owner of a boat building company is deciding whether or not to exhibit at a particular boat show, which is to be held early in the season. The total cost of exhibiting at the show will be £6,000. Sales will be dependent on the weather, there is a 0.3 chance that the weather will be dry and an 0.7 chance that the weather will be wet. If the weather is dry, the owner expects to sell six yachts at the show.

If the weather is wet, he expects to sell only two yachts at the show. The contribution per yacht sold is £10,000. If the owner does not exhibit at the show, he believes that two of the yachts he expects to sell at this show would be sold at another show later in the year. The expected net gain from exhibiting at the show is:

A. £0

B. £6,000

C. £12,000

D. £26,000

E. £32,000

Reference no: EM131844259

Questions Cloud

Same age and socioeconomic status : Choose two media products (TV show, film, magazine, book, web site) directed at audience of roughly the same age and socioeconomic status

Analyze your habits for effectiveness : Review your listening habits and analyze your habits for effectiveness. Provide a detailed explanation of your analysis that demonstrates clear

Write a summary describing the privacy risks : Write a summary describing the privacy risks, security safeguards, and strategies for evaluating the effectiveness of the technology .

Explain which ideas in the essay need further development : Explain which ideas in the essay need further development? What is the purpose of the essay? Is there an idea that is common to all the essays?

Deciding whether or not to exhibit at particular boat show : The owner of a boat building company is deciding whether or not to exhibit at a particular boat show,

Describe essential characteristics to the cloud : List the Apple Cloud and define its functionality and capabilities.Describe essential characteristics to the cloud.

Finding cost of goods manufactured : What is Cost of goods manufactured using Capacity overhead rate as POHR before applying over/under applied overhead.

Using the unused capacity for the new product : what is the opportunity cost associated with using the unused capacity for the new product?

How pollution reduction appalachian coal mining undertake : Appalachian Coal Mining believes that it can increase labor productivity. How much pollution reduction should Appalachian Coal Mining undertake?

User Account

All Pages