Answer:
The company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV
.
Explanation:
In order to know if the company should develop the new product we would have to make the following calculations:
The No, of units the company expects to sell = Market share*Market size = 4.5%*120,000 = 5,400
Total contribution = No. of units sold*contribution margin per unit = 5400*87.20 = $470,880
Fixed costs = $418,000
Profit before tax = Total contribution - Fixed costs = $470,880 - $418,000 = $52,000
Net profit = (1-Tax rate)*Profit before tax = (1-34%)*$52,000 = $34,320
Since there are no depreciation costs(assumed), net profit is the operating cash flow.
Therefore, the company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV
.
Answer:
This is TRUE.
Explanation: Total quality management refers to the organization-wide efforts to ensure that the working conditions in an organization are geared towards making employees continuously strive to improve their capacity to provide on demand products and services that customers will find of particular value.
The two core principles of Total Quality Management are as follows:
1. People orientation: this has to do with the fact that everyone involved in the organization should focus on delivering top quality service to customers.
2. Improvement orientation: this has to do with the fact that everyone in the organization should work on continuously improving work processes.
Given that S<span>am's distribution of meal costs has a mean of $9 and a
standard deviation of $3, this means that the range of Sam's meal cost
that are within one standard deviation is given by ($9 - 3, $9 + 3) =
($6, $12).
Given that Sam </span><span>always tips the server $2
plus 10% of the cost of the meal, this means that when the cost of the
meal is $9, Sam tips $2 + (0.1 x 9) = $2 + $0.9 = $2.90
Therefore, the mean of the distribution of Sam's tips is $2.90
Similarly, the </span><span>range
of Sam's tips that are within one standard deviation is given by ($2 +
0.1(6), $2 + 0.1(12)) = ($2 + 0.6, $2 + 1.2) = ($2.6, 3.2) = ($2.9 -
$0.3, $2.9 + $0.3)
Therefore, </span><span>the standard deviation of the distribution of Sam's tips is $0.3</span>
Answer:
The probability that a person selected at random has virus and is aged between 21 and 25 is 0.58.
Explanation:
let A be the event that the selected person has a virus.
let B1, B2 and B3 be the events that the selected perosn is M, W and L accordingly.
the probabilities are given by:
P(B1) = 0.3
P(B2) = 0.5
P(B3) = 0.2
P(A|B1) = 0.65
P(A|B2) = 0.82
P(A|B3) = 0.5
probability of having virus and aged between 21 and 25 is given by:
[P(B2)*P(A|B2)]/[P(B1)*P(A|B1) + P(B2)*P(A|B2) + P(B3)*P(A|B3)]
= [(0.5)*(0.82)]/[(0.3)*(0.65) + (0.5)*(0.82) + (0.2)*(0.5)]
= 0.58
Therefore, the probability that a person selected at random has virus and is aged between 21 and 25 is 0.58.
