Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Ariba Ltd produces a range of ground coffee for commercial use within cafés and restaurants. The company is looking to extend its business and is considering bidding for the franchise to operate a coffee bar within a local shopping centre.
Research suggests that over the one-year period of the franchise, income and costs are likely to be:
Sales Revenue (£)
Probability
30,000
0.1
40,000
0.2
60,000
0.4
70,000
80,000
Variable Costs £
12,000
20,000
0.5
28,000
0.3
The franchise licence cost will be £24,000.
Required
(a) Prepare a probability distribution table and using this table, calculate the probability of:
(1) Not making a loss;
(2) Earning a profit of at least £8,000
(b) Discuss the limitation of the expected value approach to assessing the risks of taking on the franchise. What other factors should be considered by Ariba Ltd?
Strategies for managing risk - Evaluate what is a strategy for managing risk and what are some potential future risks?
Angie prices the cookies at $3.56 each. Suppose that Angie can sell cracked cookies for $1.10 each. What could Angie price each cookie?
Calculate the Direct material price variance and direct material quantity variance
Since the VP's trust you, they asked you to figure out the most they should pay for a license from SohnCo. Explain your answer in detail and How does this strategy work for them?Are they better off licensing or being aggressive?Explain your answer ..
Deana, Inc. purchased merchandise for $500,000, received credit for purchase returns of $25,000, took purchase discounts of $10,000, and paid transportation in of $20,000. Refer to Deana, Inc. If Deana, Inc. had $20,000 in beginning inventory.
Describe the current marketing communication, identity, and brand position of Plaza Home Health Services.
Explain the term product costing
Total the performance evaluation report for this subunit and based on the data shown, what kind of responsibility center is the subunit
In a probability-proportional-to-size sample with a sampling interval of $10,000, an auditor discovered that a selected account receivable with a recorded amount of $5,000 had an audited amount of $4,000.
A method of estimating bad debts expense that adds a detailed examination of outstanding accounts and evaluate what is the gain/loss on the sale of equipment
the maintenance cost for an investment is 2000 per year for first 10 years and 1000 per year after that. the investment
What would be the effect on the profit of the whole company, if the Training Centre was closed at the beginning of the New Year? Given the allocated costs at 10% of revenue, calculate the number of workshops that must be offered to break-even.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd