Complete the following decision box for this game. American's profits are on the left in each situation, Braniff's on the right.

Answers

Answer 1

Nash equilibrium is the state of a game when the players conclude the strategies they find salutary irrespective of the strategy chosen by their challengers.

It's the strategy chosen where both the players have their dominant strategies. The reason is that if both companies set the price as$ 600, they both earn medium gains compared to the situation when they both set the price as$ 300 and earn veritably low gains.

                                        Braniff's Decision

                                              (Low Price)                  High Price

America's Decision  LP         300, 300                     600, 300

                                 HP         600, 300                     600, 600

The Nash equilibrium is a decision-making theorem within a game proposition that states a player can achieve the asked outgrowth by not swinging from their original strategy. In the Nash equilibrium, each player's strategy is optimal when considering the opinions of other players.

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Related Questions

What are the 5 types of risk factors?

Answers

Risk factors can be categorised into 5 types. Those are:

Behavioural, Physiological, Demographic, Environmental, Genetic.

What do you mean by Risk Factors?

Since correlation does not imply causation, risk factors, it is incorrect to say that being young causes measles; yet, measles rates are higher in young people because they are less likely to have built up an immunity during a prior epidemic. In studies examining the relationship between smoking and lung cancer, for instance, statistical techniques are routinely employed to evaluate the strength of a correlation and to present causal evidence. The biological sciences and statistical analysis can prove that risk factors are causal.

So, The required risk factors are Behavioural, Physiological, Demographic, Environmental, Genetic.

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Iris Rosales is an unmarried college student age 21, and is claimed as a dependent on her married parents' tax return. What is the maximum number of personal exemptions Iris can legally claim on her own tax return

Answers

Zero is the maximum number of personal exemptions Iris can legally claim on her own tax return ,

Individuals may file an amended tax return (Form 1040X) within three (3) years of the original return's filing date or within two (2) years of the date the tax was paid, whichever is later. An original return filed early is considered filed on the return's due date.

Funeral or burial expenses, nonprescription drugs, toothpaste, toiletries, cosmetics, a trip or program for general health improvement, or most cosmetic surgery are not deductible. You cannot deduct money spent on nicotine gum or patches that do not require a prescription.

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An apartment complex generates $905,000 in Effective Gross Income and $14,000 in other income. The same complex has $415,000 in operating expenses and $39,000 as reserves. What is the Net Operating Income of the complex

Answers

Net Operating Income for the complex is $465,000. A standard metric to evaluate a property's profitability is net operating income (NOI).

The formula for calculating a real estate agent's commission should be which of the following?

Calculating a straightforward calculation is how the real estate commission calculator operates: The property price multiplied by the agreed-upon payment percentage (%). When a homeowner sells their house for $200,000 and the commission is 5%, for instance, the calculation is (5/100) x $200,000 = $10,000 commission.

What is the name of the optional program where escrow accounts are eligible for interest?

Attorneys deposit these minimal short-term monies into a commingled escrow account that is eligible for the Interest on Lawyer Trust Accounts (IOLTA) program, where the account can earn interest.

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The units of an item available for sale during the year were as follows: Jan. 1 Inventory 11 units at $41 $451 Aug. 13 Purchase 17 units at $44 748 Nov. 30 Purchase 18 units at $46 828 Available for sale 46 units $2,027 There are 28 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) $ c. Weighted average cost $

Answers

Answer:

A. $1,620

B.$1,199

C. $1,234

Explanation:

A. Calculation to Determine the inventory cost using the first-in, first-out (FIFO) method

First in first out = (18*46+18*44)

First in first out =$828+$792

First in first out =$1,620

Therefore the inventory cost using the first-in, first-out (FIFO) method is $1,620

B. Calculation to determine the inventory cost using the last-in, first-out (LIFO) method

Last in first out = (11*41+17*44)

(11-28=17)

Last in first out =$451+$748

Last in first out =$1,199

Therefore the inventory cost using the last-in, first-out (LIFO) method is $1,199

C.Calculation to determine the inventory cost using the Weighted average cost method

Weighted average = ($2,027/46)*28

Weighted average =$44.0652*28

Weighted average =$1,234

Therefore the inventory cost using the Weighted average cost method is $1,234

How can the use of new technology in industry benefit?

Answers

The application of modern technology has recently revolutionized the industrial sector. Industries can enhance and increase the efficiency of their manufacturing processes by adopting the most recent technologies. Industries can shorten the time it takes to accomplish activities while improving accuracy and consistency by utilizing automation and robotics.

Utilization of new technology by producers in the sector:

Improved output, for starters

2. More adaptability

3. Budget savings

4. Increased security

5. A better experience for customers

6. Heightened competition

7. Enhanced quality

8. More easily scaleable

Summary:

Following the discussion of the advantages of technology use in the industrial sector, it is obvious that purchasing new technologies can assist manufacturers much. Through cost reductions and easier scalability, technology can help companies remain competitive in a market that is changing quickly.

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Thaddeus is a salaried exempt worker who earns $52,500 per year for a 45-hour workweek. During a biweekly pay period, he worked 105 hours. What is his gross pay

Answers

Thaddeus' gross pay for the biweekly pay period is $6,562.50. This is calculated by multiplying his salary of $52,500 by the number of hours worked (105) and then dividing by the number of hours in a regular workweek (45).

This amount does not include any overtime pay, as salaried exempt employees are not eligible for overtime.

Prior to making any deductions, including tax deductions, the gross compensation of an employee is computed by averaging their basic pay and benefits. In this context, a basic salary is an employee's base pay or the set portion of their benefits package.

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The expense that relates to a formal note payable and accumulates or accrues throughout the accounting period is referred to as

Answers

The expense that relates to a formal note payable and accumulates or accrues throughout the accounting period is referred to as the interest expense.

The interest expense can be assumed as a phenomenon wherein the expenses are related to a particular period of accounting, and as a result of the same, only the bills or notes that are payable within the period are recorded under this head in the books of accounts of the firm related thereto. Moreover, the interest expense is also related to the direct expenses and not the indirect ones.

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A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have

Answers

To bring a specific performance lawsuit; Failure to comply with the agreement's conditions constitutes a breach of contract.

Can a vendor terminate a deal without cause?

You may be required to perform the contract in accordance with its terms by a court order if you don't finish the transaction and don't have a valid reason to break the agreement. This is known as "specific performance."

What occurs if a vendor breaches a contract?

The repercussions for vendors who breach contracts In certain circumstances, a property seller who violates a purchase agreement may be held liable for breach of contract. A judge could mandate that the seller execute a deed and proceed with the transaction.

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You are a project manager for Johnson Keyboards, Inc. Your organization has adapted the PMBOK Guide as a standard tool for how projects should operate, and you are involved in shaping the standardization for all future projects. In light of this information, what is the recommended course of action for the processes and procedures in the PMBOK Guide

Answers

The recommended course of action is that the PMBOK guide is not required by all projects.

The Project Management Body of Knowledge (PMBOK), published by the Project Management Institute (PMI), is a book that lists accepted terms, best practices, and procedural rules for project management. Project management is the practice of starting, planning, carrying out, controlling, and wrapping up a team's work to accomplish specific goals and success standards.

It takes the application of information, skills, tools, and processes to project activities in order to meet the project's requirements. In the given case, the project manager for Johnson Keyboards, Inc must understand that not all processes and procedures in the PMBOK guide are required on all projects. Thus, further decisions on the project must be taken on this basis only.

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Financial accounting often has challenges with valuation and estimation in all but the following area:
- goodwill
- accounts payable
- accounts receivable
- inventory

Answers

The area that not included in the challenging with valuation and estimation for financial accounting is accounts payable. Because accounts payable is not the area for financial accounting.

Financial accounting in economic and business generally can be defined as the process of  reporting recording, summarizing a company's business transactions through financial statements. Financial statements that are responsible are for financial accounting are the cash flow statement, tthe income statement, the balance sheet, t and the statement of retained earnings. Financial accounting has several areas, such as  asset, expense, income, liability and equity accounts.

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When office-based services are performed in a facility, such as a hospital or outpatient setting, payments are reduced because the doctor did not provide supplies, utilities, or the costs of running the facility. This is known as the __________ differential.

Answers

When office-based services are performed in a facility, such as a hospital or outpatient setting, payments are reduced because the doctor did not provide supplies, utilities, or the costs of running the facility. This is known as the facility fee differential.

Fee Differential means the outright worth of the distinction between (y) the total Pertinent Expenses really paid to Supplier for the Subject Assistance preceding giving impact to any change in accordance with such Relevant Expenses as per arrangements of Section 2(e) and (z) the total Material Expenses that would have been paid to such Supplier for such Subject Administrations had the acclimation to such Appropriate Expenses been made on the date concerning this.
A Prospective Payment System (PPS) is a met-hod of repayment wherein Federal medical insurance payment is made in view of not entirely settled, fixed sum . The compensation sum for a specific help is derived in view of the classification arrangement of that ser-bad habit ( for instance, determination related bunches for in-patient medical clinic administrations ).

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The dollar differential between the cost and sales price of a menu item is called
• food cost
• labor cost
• contribution margin
• profit margin

Answers

The monetary difference between a menu item's cost and sales price is known as the contribution margin. Therefore, the right answer would be contribution margin.

The contribution margin can be expressed in either gross or per-unit terms. It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.

The selling price per unit less the variable cost per unit is the contribution margin. The metric, also known as dollar contribution per unit, shows how a certain product affects the company's overall earnings.

It offers a means of demonstrating the potential for profit of a certain product being supplied by a business and displays the percentage of revenue that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.

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For the past several months the Jackson Shop, a mom and pop retail store, has suffered costly losses due to the theft of merchandise. Putting in a comprehensive surveillance system that covers all of the entrances and exits at all four of their locations is not feasible at this time. Nevertheless, they have decided to install several surveillance cameras in their flagship store. They notified their employees that the cameras were being installed and placed posters at the store entrances notifying their customers of the new security. Not surprisingly, thefts decreased dramatically within a month and continued to decline over the next six months. Without the cash to install cameras in all the stores, Adams installed fake cameras at the other three stores and let employees and customers at those locations know about the cameras. Thefts dropped at the other stores as well. The concept that most likely explains why the thefts decreased is known as:

Answers

Answer:

Perception of detection

Explanation:

Perception of detection is defined as the belief that exists within an organisation that if a person commits fraud he will be exposed by other employees in the organisation quickly.

This can be achieved by various steps including:

- removal of avenues for fraud by thinking like a fraudster

- segregation of duties

- perform surprise audits

- having a hotline to report fraud

The installation of cameras by Jackson shop and publicising of this action led to a consistent fall in fraud because the employees had a perception that if they tried to commit fraud they would be detected by the cameras

Your firm has a risk-free investment opportunity where it can invest $160,000 today and receive $170,000 in one year. For what level of interest rates is this project attractive

Answers

The level of interest rate is this project attractive is 10.90%

We use the formula:

A=P(1+r/100)^n

where

A=future value

P=present value

r=rate of interest

n=time period.

Hence

173000=156000(1+r/100)^1

Hence

(173000/156000)=1+r/100

Hence

1+r/100=1.10897

Hence r=(1.10897-1)×100

 =10.90%(Approx).

Hazard-free go-back is the theoretical go-back attributed to funding that gives a guaranteed go-back with zero risks. The chance-unfastened fee of go back represents the hobby on an investor's money that would be predicted from a virtually danger-unfastened investment over a special time frame.

The threat-unfastened charge determines the return an investor can assume over a particular period from an investment. The fee of a chance-unfastened charge is calculated with the aid of subtracting the current inflation fee from the whole yield of the treasury bond matching the investment period.

The hazard-free rate is typically taken into consideration to same to the hobby paid on a 3-month government Treasury bill, generally the safest funding an investor could make. The hazard-loose rate is a theoretical quantity considering technically all investments convey a few forms of risk, as defined here.

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Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $55,800 and is paid semimonthly. He is married filing separately and has indicated checkbox withholding on his 2020 Form W-4. His state income tax is 3.23%, and Clark County income tax is $41.85 per pay period. What is the total of FICA, Federal, state, and local deductions per pay period, assuming no Pre-Tax Deductions

Answers

The total of FICA, Federal, state, and the local deductions per pay period, assuming no Pre-Tax Deductions is calculated below.

Given,

Annual salary = $55,800

Income tax = 3.23%

Clark County income tax = $41.85 per pay period.

Brent then gets paid semi-monthly so then his pay per period is:

= $55,800 / (12 months * 2)

= $9,300

His federal tax is:

= $80

This figure is said to be based on the intersection between the income of $1,640 and the 3 withholding allowances.

FICA tax rate is 7.65% so his FICA tax is:

= $9,300 × 7.65%

= $71,145

Local deduction - Clark County Income tax = $41.85

Total deductions:

= Federal tax + State income tax +  FICA + Clark County income tax

while assuming no Pre-Tax Deductions.

= 80 + 125.46 + 52.97 + 29.52

= $287.95

Hence, the total of FICA, Federal, state, and the local deductions per pay period, assuming no Pre-Tax Deductions is calculated.

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refer to the data. diminishing marginal returns become evident with the addition of the:

Answers

Look at the numbers. With a third worker added, decreasing marginal returns become apparent. The idea of declining marginal utility is connected to the law of decreasing returns.

The rate of return for a marginal increase in investment is known as the marginal return; essentially speaking, this is the extra output that results from using a variable input one unit more while using other inputs at the same level. An economic theory known as the rule of declining marginal returns states that once an optimal level of capacity is reached, adding more factors of production will really only lead to smaller improvements in output. For instance, a factory hires people to produce its goods, and eventually the business performs at its best. If you increase the number of employees beyond this point, operations will become less efficient even if all other production parameters remain constant.

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The period T (in econd) of a pendulum i given by T=2\pi \qrt((L)/(32)), where L tand for the length (in feet) of the pendulum. If \pi =3. 14, and the period i 15. 7 econd, what i the length?

Answers

The length can be calculated if we input the value of period and [tex]\pi[/tex]. The value of length is 200 feet.

The period, or also known as periodic time, of a periodic variation of a quantity generally can be described as the time interval between two successive repetitions. We can determine the period and hence the frequency by timing the duration of one complete oscillation.

The formula of period is

T = 2[tex]\pi[/tex][tex]\sqrt{\frac{L}{32} }[/tex]

If the value or [tex]\pi[/tex] is equal to 3,14 and the period is 15,7. Then we can calculate L:

15,7 = 2 x (3,14) [tex]\sqrt{\frac{L}{32} }[/tex]

15,7 = 6,28[tex]\sqrt{\frac{L}{32} }[/tex]

2,5 = [tex]\sqrt{\frac{L}{32} }[/tex]

[tex](2,5)^{2}[/tex] = [tex](\sqrt{\frac{L}{32} })^{2}[/tex]

6,25 = [tex]\frac{L}{32}[/tex]

L = 6,25 x 32

L = 200 feet

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Car insurance and cars are complements. If the price of car insurance increases, the quantity of cars demanded decreases. demand for cars increases.
More information is needed to determine if the demand increases or decreases.
demand for cars decreases.
Which of the following shifts the supply curve for oranges?
O an increase in income for all orange consumers if oranges are a normal good
O an increase in the price of bananas, a substitute in consumption for oranges
O a newly discovered increase in the nutritional value of oranges
O disastrous weather that destroys about half of this year's orange crop

Answers

An increase in price of bananas, a substitute in consumption for oranges shifts the supply curve for oranges.

What is a supply curve?

The supply curve shows how the cost of a good or service relates to how much is provided over a given length of time. In a typical situation, the price will be displayed on left vertical axis and the quantity delivered will be displayed on the horizontal axis. In the event that a variable other than price or quantity changes, a new supply curve must be created. Imagine, for example, that some new soybean growers enter the market, clearing land for cultivation while increasing the area used for soy production. In this scenario, more soybeans will be produced even if the price remains unchanged, moving the supply curve to the right in the graph below (S2).

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Which type of costs are related to higher insurance premiums and increased disability payments due to obesity-related health conditions

Answers

Direct medical expenses due to obesity-related medical issues, what expenditures are associated with higher insurance rates and greater disability payments

How much cash does disability provide you with?

Most people typically receive between $910 & $1,310 per month. The average monthly benefit for eligible people in 2021 is $1,277, according to the Administration for Social Security (SSA). Benefits for those with high incomes during their working years might reach $3,148 per month.

How is a disability determined?

The Weekly Benefit Allocation (WBA) you receive is based on your yearly income. To the maximum WBA, it is projected to be between 60 and 70 percent of a earnings you made in the five to eighteen months prior to the start of your claim. The beginning of your impairment is the date on which your claim begins.

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probably the single most important factor in predicting the success of a new product in its degree of __ compared to existing products

Answers

Relative value of the new product in comparison to old products is perhaps the single most crucial aspect for accelerating theadoption & diffusion process and ensuring the product's success.

What three diffusion processes are there?

Chemical potential-higher to potential-lower zones are where molecules disperse. The three mechanisms by which diffusion takes place are chemical g, self-diffusion, and intradiffusion.

What in finance is a diffusion process?

By the diffusion process, financial terms a view of how a stock's price fluctuates that holds that the price assumes all intermediate values.

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What is the main benefit of organic farming?

Answers

The main benefit of organic farming is that it helps protect the environment from toxic chemicals and pesticides and also conserves nutrients in the soil. By avoiding the use of synthetic fertilizers, herbicides, and other chemicals, it helps prevent contamination of groundwater and surface water with these potentially harmful substances.

This prevents the spread of water-borne diseases and protects aquatic animals. Organic farming also helps reduce soil erosion, as the use of chemical fertilizers can lead to soil degradation. In addition, organic farming helps to promote biodiversity in the environment as it relies on the natural diversity of plants and animals. Finally, organic farming can also help reduce air pollution, as the use of chemical fertilizers and pesticides releases large amounts of greenhouse gases.

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You sell a municipal bond that has been advance refunded. It will be called at 102 four years from now. On the confirmation, the yield must be stated as the yield to A) maturity. B) call. C) maturity or yield to call, whichever is lower. D) maturity or yield to call, whichever is higher.

Answers

The yield must be identified as the yield to call on the confirmation. The correct answer is option (B).

What is municipal bond?

A municipal bond, or "muni," is a type of bond issued by local or state governments, as well as the authority and special districts they establish.

According to MSRB regulations, the yield to call that has been established when a call date has been set by a prerefunding must appear on the confirmation statement. This bond issuance will be called just at call date due to the prerefunding. What will occur is certain to happen. As a result, setting the bond's price to the call date is reasonable. The bond's previous maturity is no longer significant.

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What can you get with a 800 credit score?

Answers

With a credit score of 800 one is likely to be approved for additional credit lines, such as personal loans, mortgages, and auto loans.

What is a credit score?An individual's creditworthiness is shown by their credit score, which is a numerical expression based on a level analysis of their credit files. A credit report, which normally includes data from credit bureaus, serves as the foundation for a credit score.While every creditor defines its own ranges for credit scores, the average FICO Score range is often used.Additionally, you might be eligible for credit cards that offer higher benefits and points, like entry to airport lounges and complimentary breakfast at hotels.

Excellent: 800–850

Very Good: 740–799

Good: 670–739

Fair: 580–669

Poor: 300–579

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You currently work for the Lexington Legends, a minor league baseball team. The team's attendance is down this year even though the team is playing

better than it ever has before. What part of the promotional mix would you suggest the team adjust in order to increase attendance?

Multiple Choice

- position

- promotion

- place

- product

- price

Answers

The correct response is b) promotion. Attendance in Minor League Baseball (MiLB) is low.

Promotion includes a wide range of activities aimed at increasing public awareness or advancing a product. When referring to a career, promotion is raising a worker's rank or position within a hierarchical system. An employee's rank or position in an organizational hierarchy system is elevated by a promotion. Promotion could be an employee's reward for excellence, or a favorable evaluation. These include event marketing, exhibits, and trade shows, as well as direct marketing PR, advertising, and sales promotion. The main advantage of a promotion is that it makes a business stand out from its competitors. Without competition, no company would ever need to run promotions. To continue doing business with customers, you must stay one step ahead of your rivals.

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You own a construction business and need to hire workers to build a house and add one worker at a time to the added contribution of each worker. At what point will you stop hiring workers ? Relate this process to the three stages of production function as you explain your answer .

Answers

The point at which you will stop hiring workers will depend on the marginal product of labor, which is the additional output that is produced by adding one more worker. In the short run, the marginal product of labor will initially increase as more workers are added, but it will eventually reach a point of diminishing returns, where the marginal product begins to decline. This occurs because at some point, the additional workers will not have enough resources (such as tools and materials) to work with, and the production process will become less efficient.

In the long run, all inputs are variable, so the marginal product of labor will continue to decline as more workers are added. Eventually, the marginal cost of hiring additional workers will exceed the marginal benefit, and it will no longer be profitable to hire more workers.

In the context of a construction business, you would likely stop hiring workers when the marginal product of labor begins to decline, or when the marginal cost of hiring additional workers exceeds the marginal benefit. This decision would be based on your analysis of the costs and benefits of hiring more workers, and your assessment of the efficiency and productivity of your construction process

Randy Hill wants to retire in 20 years with $1,000,000. If he can earn 10% per year on his investments, how much does he need to deposit each year to reach his goal

Answers

In 20 years, Randy Hill wants to have $1,000,000. To achieve his objective, he must deposit $31,474 annually if his investments earn 10% annually.

An asset's potential to rise in value over time is what investments are all about. Investment necessitates the giving up of a gift asset, such as time, money, or effort. The goal of making an investment in finance is to get a return on the asset that was invested in.

An asset that is acquired or invested in to create wealth and store hard-earned profits or appreciation is an investment. The primary goal of funding is to generate additional income or gain from the investment over a predetermined time period.

15 is N,

10 is I,

0 is PV,

and 1,000,000 is FV.

Solution for PMT: (rounded) $31,474

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An airline sells 120 tickets for a flight that seats 100. Each ticket is non-refundable and costs $250. The unit cost of flying a passenger (fuel, landing fees, etc.) is $110 and assumes that every flight is full. If the flight is overbooked, each person who does not get a seat is given $400 in cash. Assume it is equally likely that any number of people between 91 and 120 show up for the flight. Rounded to the nearest thousand, what is the average expected profit the flight will generate

Answers

After subtracting revenue from variable and fixed expenses, profit is realized. Profit can be calculated for a variety of purposes, including determining a product's financial viability and managerial effectiveness.

The average profit from equally likely scenarios would be the expected profit.

The expected profit is the sum of the profit from the initial 90 customers and the likely profit or loss from the subsequent 30 customers.

The probability of each customer traveling for the next 30 customers is 1/30, so the probabilities of profit or loss from those customers are as follows:

$120 x 10 x 1/30 - $100 x 20 x 1/30 = -$26.67

Expected profit = 90 x $120 - $26.67 = $10,773 or $11,000.

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Harold works as an operations manager. He uses a project management tool to schedule and manage the steps of the manufacturing process. Harold has made a list of all the activities involved in the process. He has calculated the optimistic time, most likely time, and pessimistic time that the process might take to be completed. Which project management tool is Harold using?
A.
Critical Path Method (CPM)
B.
Program Evaluation and Review Technique (PERT)
C.
Total Quality Management (TQM)
D.
Gantt chart
E.
Just In Time (JIT)

Answers

Answer:

B

Explanation:

Answer:

PERT

Explanation:

Plato/Edmentum

Jayden’s client tells him, “I open up my closet in the morning, and there are too many choices. I’m getting rid of all the wild colors and patterns. I want to limit my wardrobe to three colors and just have a few basic, high-quality pieces that all match each other.” What trend does this client want to follow?

A.
maximalism

B.
barrier-free design

C.
sustainable fashion

D.
minimalism

Answers

D, minimalism, since they want to get rid of items

What is the character of a gain resulting from the sale of a piece of land used in an active trade or business for two years?
Question options:
O Capital
O Ordinary
O Section 1231 (and may receive LTCG treatment)
O Investment
O None of the above

Answers

Capital gain is the character of a gain resulting from the sale of a piece of land used in an active trade or business for two years.

Income from the sale of real estate beyond 24 months is considered a long-term capital gain and is taxed at 20% with indexation. When calculating LTCG, the taxpayer should use the Cost Inflation Index (CII) published by the income tax department to determine the Indexed Cost of Acquisition.

When a capital asset is sold, its value increases, and this is referred to as a capital gain. Simply put, a capital gain happens when you sell an asset for more money than you paid for it initially.

The profit made from the selling of an asset, such as stocks, bonds, or real estate, is known as a capital gain. When an asset's selling price is higher than its original acquisition price, a capital gain is realized.

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