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Anarel [89]
2 years ago
14

To generate new leads for business, Gustin Investment Services offers free financial planning seminars at major hotels in Southw

est Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3500, and the average first-year commission for each new account opened is $5000. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. a. Determine the equation for computing Gustin's profit per seminar, given values of the relevant parameters. b. What type of random variable is the number of new accounts opened
Business
1 answer:
soldi70 [24.7K]2 years ago
5 0

Answer:

a. Determine the equation for computing Gustin's profit per seminar:

Profit =  (Number of people attend the seminar * 50) – 3,500

b. What type of random variable is the number of new accounts opened:

It is a binomial random variable

Explanation:

a.

We have the profit per seminar is equals to:

Profit = Total commission - Total cost of the seminar = Number of attendee * Probability one attendee will opened the account * Commission fee per one new account - 3,500 = Number of attendee * 0.01 * 5,000 - 3,500 = (Number of people attend the seminar * 50) – 3,500.

So, the right equation is : Profit =  (Number of people attend the seminar * 50) – 3,500

b.

It is a binomial radom variable because: a account opened/closed is independent from another account opend/closed; one attendee has two possible outcome, either opened or closed.

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Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann
Leya [2.2K]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Annual contribution margin of $80,000 and $160,000 in annual fixed

costs.

Of the fixed costs, $50,000 cannot be avoided.

<u>To calculate the financial impact on income, we need to use the following formula:</u>

Effect on income= avoidable fixed costs - contribution margin

Effect on income= 50,000 - 80,000

Effect on income= -$30,000

3 0
2 years ago
Business solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. the $159
xeze [42]

Answer:

Business Solutions

Second-quarter 2018

Fixed Budget Performance Report

                                                  Budgeted              Actual

Variable expenses for desks $104,720              $104,720*

Variable expenses for chairs,   $20,800             $20,800*

<u>Fixed expenses                       $34,000                $35,800</u>

<u>Total  Expenses                      $159,520               $ 156,320 </u>

*Suppose the actual variable expenses are the same as budgeted variable expenses.

Explanation:

The variable expenses depend on the number of units of chairs and desks produced where as the fixed expenses remain constant irrespective of the no of units of production.

Variable expenses are those expenses that vary directly with the number of units produced ( example more desks and more chairs will require more material).

4 0
2 years ago
Morris is a software engineer for a manufacturer. He wrote a program for the accounting department. During the testing phase, he
Lyrx [107]

Answer:

The principle of the Software Engineering Code of Ethics that Morris has violated is:

the Product principle.

Explanation:

The Product principle requires that Morris' program (product and related modifications) should meet the highest professional standards.  Staying within budget and rationalizing an error as minor are not requirements of the Software Engineering Code of Ethics that Morris subscribed to.

Other requirements of the code include acting in the best interest of the public, client, and employer; maintaining high product standards; integrity and independence in professional judgment; using an ethical approach; maintaining professional integrity and independence; being fair and supportive to colleagues; and ensuring participation in lifelong learning.

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2 years ago
Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis
Alex787 [66]

Answer:

Jaxon Furnishings Company Vs Logging Opportunities in Alaska

Comparison of the benefits of increased wood production to the costs of deforestation:

The company is using the __environmental sustainability___ approach to make this ethical decision.

Explanation:

According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."

An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done.  Short-termism selfishly considers the immediate gains from a transaction.  It lacks a futuristic appetite for the good of future generations.

3 0
2 years ago
A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat
Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }

so in this particular case that one year later there are 29 years to maturity so we have:

price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }

price=553.6638

so as we have a higher rate the investment has the next return:

return=\frac{553.66}{627.73} -1

return=-11.8\%

4 0
2 years ago
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