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maria [59]
1 year ago
12

Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from sup

pliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if Highgate achieves $100,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $100,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Business
1 answer:
fomenos1 year ago
6 0

Answer:

The transaction price would Leo estimated for this contract is $30,000

Explanation:

The computation of the transaction price is shown below:

= (Fixed fee + additional amount) × chance + fixed fee × chance

= $35,000 × 50% + $25,000 × 50%

= $17,500 + $12,500

= $30,000

hence, the transaction price would Leo estimated for this contract is $30,000

We simply applied the above formula so that the correct answer could come

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When all companies and their managers in a society behave in a socially responsible way, business increases, quality of life inc
Mkey [24]

Available Options Are:

A. A climate of caring will pervade.

B. Lawlessness all but ceases to exist.

C. People look after their own interests.

D. Small business starts increase.

E. Inflation decreases.

Answer:

Option A. A climate of caring will pervade.

Explanation:

When the people in a society start acting socially responsible which means that they value every single life on earth because acting socially means sustainability which says that the future generation needs must not be compromised in meeting current generation needs. Hence when everyone will be thinking as a socially responsible person then their will be a climate of care and every life matter would be understood by every single person on earth.

7 0
2 years ago
You write a call option on Google. The current price of one share of Google is $400, the option strike price is $410, and the op
Vlad1618 [11]

Answer: E) A and C

Explanation:

A Call option is an option to buy a security at a certain price in future. The option is only exercised if the market price of the security is higher than the option price of the security. When this happens the Call is said to be <em>in the money. </em>On expiration day, the price of Google is $425 which is higher than the option price of $410 so the Call is in the money. Option A is correct.

The option premium is the amount paid for the option contract and so is an expense. Payoff is calculated as;

= Market Value - (Option Price + Option premium)

= 425 - ( 410 + 5)

= $10

Option C is correct as well.

3 0
2 years ago
A catering company prepared and served 250 meals at an anniversary celebration last week using 7 workers. The week before, 8 wor
Y_Kistochka [10]

Answer:

A) For which event was the labor productivity higher?

Productivity is defined as the capacity to produce with a set amount of inputs, these inputs being workers and capital. A higher productivity occurs when more output is produced with the same or less amount of inputs.

Labor productivity was higher for the the anniversary celebration last week because with 7 workers, the catering company managed to serve 250 meals. Meanwhile, the week before, with 1 more worker (8 in total), the company only served 200 meals.

B) What are some possible reasons for the productivity differences?

The reasons can be very varied. One common reason though is the law of diminishing marginal product. This economic law establishes that there is an optimal amount of workers to employ in an economic activity, and any amount above or below will be less productive.

In this case, the optimal amount may have been 7 workers, and adding the 8 worker could have created a productivity loss represented by the lesser production.

3 0
1 year ago
Eric, a ghost writer, conducted market research and discovered a niche market in writing scripts for corporate online videos. He
cupoosta [38]

Answer:

What is the best way to get his service to his target customers?

Explanation:

8 0
1 year ago
You are a professor of economics at a university.​ You've been offered the position of serving as department​ head, which comes
Alisiya [41]

Answer:

$5,500

Explanation:

Given that,

Increase in salary from switching a job = $7,500 but have to invest additional 200 hours per year

and the opportunity cost of spending this time with the family:

= $10 per hour × 200 hours

= $2,000

Therefore, the net benefit is as follows:

= Amount of increase in salary - opportunity cost

= $7,500 - $2,000

= $5,500

Hence, the change in net benefit is $5,500.

7 0
1 year ago
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