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A warehouse needs pest treatment that requires opening all the windows and covering the building with a tent for 48 hours. Opening the windows means deactivating the alarm system. The warehouse owner is concerned about theft during this time. He has insurance to cover losses due to theft, but the policy has a large deductible. He is thinking of hiring a security firm to provide on-site guards during the 48 hours the security system is off. The following information applies:
Insurance deductible: $25,000
Cost of on-site guards: $150/hour
Probability of theft during the 48-hour period if unguarded and without an alarm system: 30%
Probability of theft if on-site guards are present: 3%
Assume that if a theft occurs, the total amount stolen will exceed $25,000. Construct a decision tree that determines whether guards should be hired or not based only the expected monetary value.
In oral or English Auctions, the highest bidder wins but only has to outbid the second highest bidder. Does this concept make sense to you? What bidding experiences have you participated in?
During the first quarter, we made several decisions resulting in a $13 million charge to earnings. A new accounting pronouncement, FAS 121, required the Company to take a $7.5 million charge. What earnings management strategy appears to have been use..
Tech engineering inc. makes a consumer product for which the following cost data are available. Determine the breakeven volume unit can be sold for $40. If a net profit of $100,000 is required determine the number of units that needed to be sold.
A monopolist will sell less at a higher price. A monopolist has marginal revenue that is less than the price. A monopolist will produce where MR = MC. A monopolist is a price taker.
In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade deficit and negative net capital outflow.
The B.F. Goodrich Co. decided to close one of its plants. It offered to pay a 10% bonus to any employee who continued to work in the plant until it closed. Maude Miami was employed at the existing plant; she knew of the bonus offer, and she continued..
q1. in reference to financial perspective you have financial perspective customer perspective process prospective and
q.this problem uses the solow model to analyze the e?ects of immigration. suppose that the economy is initiallyin
"On a supply-and-demand diagram, equilibrium is found"
The market equilibrium wage is currently $12 per hour among hairdressers. At that wage 17,323 hairdressers are currently employed in the state. The state legislature then sets a minimum wage of $11.50 per hour for hairdressers. If there are no change..
When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.
Suppose Jason has allocated his entire budget to the purchase of apples and bananas. The marginal utility of the last apple purchased is 10 utils and each apple costs 10 cents.
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