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cool-aire corporation manufacturers a line of room air conditioners. Its break even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units. a. determine the probablity that cool-aire will incur an operating loss. b. determine the probability that cool-aire will operate above its break-even point.
Retail electrical energy in Michigan costs $0.12/kwh. Your laptop battery fully charged stores 40 watt hours. On avergae a battery can sustain 500 full charge/discharge cycles. The cost of the battery is $100. What is the cost of electrical energy..
You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..
If you want to have $100,000 in the account at the end of the 15th year, how much money would you have to deposit in the account at the end of each year (equal annual deposits for 15 years).You are investing in an account that will pay 15% interest..
A and 20 milligrams of vitamin B while minimizing cost. An ounce of oats contributes 8.5 milligrams of vitamin A and 1.2 milligram of vitamin B, whereas an ounce of rice contributes 6.4 milligrams of A and 2.2 milligrams of B. An ounce of oats cos..
Graph the cost curves from part a and indicate the points from part b. Explain why the cost curves have the shape they do. Now, Joe decides to split his operations between two forests and hire his buddy Earl. The production function becomes: qi = ..
A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost.
Lori, who is risk averse, has two pieces of jewelry, each worth $400. She wants to send them to her sister in Mexico. She is concerned about the safety of shipping them. She believes that the probability that a shipped package will not arrive is q..
In May 2012, the yields to maturity in the table below were recorded on Treasury discount bonds. If the expectations theory of the term structure holds, what do bond traders expect the interest rate on five-year discount bonds to be in May 2017, M..
Which changes to fiscal stimulus package of 2009 for $862 billion (under the bill called American Recovery and Reinvestment Act of 2009) would have a larger overall impact on AD. Explain your answer in a paragraph or two with credible logics and a..
There are too many fixed gear bikes in Hipsterland and city leaders are looking for ways to reduce the quantity. They are considering policies which would reduce the number of fixed gear bikes. The demand and supply curves for fixed gear bikes in H..
Suppose that individual demand for a product is given by QD = 8000 - 10P. Marginal revenue is MR = 800 - 0.2Q, and marginal cost is constant at $20. There are no fixed costs. The firm is considering a quantity discount. The first 300 units can be ..
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
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