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In November 2016, Worker Jon must choose how much he wants to contribute to his Flexible Savings Account (FSA) for the year 2017. He can contribute up to $2,550, which will be deducted pre-tax from his 2017 income. He can then use the deposit (e.g., get reimbursed) for eligible health care expenses incurred during 2017. His tax rate is 30%, so for every dollar that he does actually spend from his FSA, he will get 30 cents tax benefit. However, since he does not know exactly how much he will spend in 2017, there is a risk involved. If he did not spend all the money he had deposited, the remaining balance will expire (i.e., it cannot be withdrawn or rolled over to next year). Suppose Jon has estimated that his eligible expenses follows a Normal distribution with mean and standard deviation . Guideline: Newsvendor calculations with continuous demand distribution.
a) What is the shortage cost? What is the excess cost? What is the newsvendor critical ratio?
b) What is the optimal amount Q* to contribute his FSA?
We may not be able to control the weather, but we can use weather characteristics to assess risks in hazardous material spills. What are some of the weather characteristics where you live that might create problems during a spill response or clean..
Discuss three (3) changes from the traditional or "old" paradigm of leadership to the new paradigm. For each change, explain one (1) factor in the current business climate that necessitates each change. Which change in your opinion has been most e..
What do you think is the best method to evaluate a security breach to a corporation's database, employee credit cards, and corporate executive business accounts?
David Upton is president of Upton Manufacturing, a producer of Go-Karts tires. Upton makes 1500 tires per day with the following resources: Labor: 500 hours per day @ $12.50 per hour Raw Material: 20,000 lbs. per day at @ $2 per lb Energy: $5,000 per..
Assign tasks to work stations using the longest task time heuristics (longest operating time rule). 5. How much total idle time is present each day? 6. What is the overall efficiency of the assembly line?
How does this statement support positive discipline? Why should supervisors be unafraid to confront disciplinary situations when they occur?
Mapping the Process of Innovation 1.Pick an industry (e.g. groceries, airlines, publishing, etc.) and explain the innovative process that must take place for successful integration of innovation.
Cost Accumulation for batch-production operations or Job shopActivity-based Costing Systems
Three hundred boxes are to be shipped and each box has a price of $140. Which shipping alternative would you recommend. Explain.
Is interviewing a two-way street? As a job interview nears conclusion, what kinds of questions should you ask about the position or company? Provide some examples that you have used and discuss the reaction/response you have received from an intervie..
Under the Common law suits to stop a business from polluting could be brought the law of nuisance. Under the ADA disability is defined very broadly.
Tigers Sports Club has to select four separate co-ed doubles teams to participate in an inter-club table tennis tournament. Find the best pairs
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