If a company knows that the EVPI= $85,000 and the efficiency of the sample is 27%, and the cost for conducting the survey is 5,000 and EMV is three times the price then the expected value of sample information is:
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: The static budget variance of variable Cost = Actual variable Cost - Budgeted variable Cost
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A: The formula used as follows: EAC=Actual cost+Budget-Earned value
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A: Given; Annuals sales: $200 million Percentage spending on quality costs: 18%
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A:
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A: The variance is the difference between the actual data and estimated cost.
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: Static budget is that budget which is fixed in nature and will not be change. But if level of…
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A: As you have asked multiple sub-parts we can solve only first three sub parts for you for rest of the…
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A: SOLUTION - Margin of safety, also known as MOS, is the difference between your break even point and…
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A: Description: Static budget variance of variable costs: Deduction of Budgeted Variable costs from…
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A: Formula: Net operating income = Revenues - Variable costs - Fixed costs
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Q: The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in…
A: a)
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A: Target cost can be calculated by deducting the profit margin from the expected sales revenue.
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A: Sensitivity analysis calculates the effect on the outcome by changing one input variable at a time.
Q: margin of safety will be
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A: The best-case scenario is when the sales are highest possible with the cost lowest possible. And the…
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A: Formula: Static budget variance of variable cots = Actual Variable costs - Budgeted Variable costs
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A: The question is based on the concept of Future Value.
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
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A: Margin of safety: It can be defined as the difference between the budgeted and break-even sales.
Q: If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of…
A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: Static budget is the original budget, which is not revised according to the actual units.
Q: The actual variable costs are $26000 and the actual units produced total 300 and the actual direct…
A: Solution: Variable cost rate variance = (SR - AR) * AH Variable cost efficiency variance = (SH - AH)…
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A: Margin mixture variance :— It is the multiplication of Standard margin and difference of actual…
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- A market research survey is available for 3000 JD. Using a decision tree analysis, it is found that the expected monetary value with no survey is 36,000 JD. If the expected value of sample information is 3,000 JD, what is the expected value with the survey? a. 39,000 JD b. 27000 JD c. 37000 d. 36,000 JD e. 33,0001. What is sensitivity analysis? 2. Perform a sensitvity analysis on the unit sales, salvage value, and WACC for a project. Assume that each of these variables deviates from its base-case, or expected value by plus or minus 10%, 20%, and 30%.The base case value for unit sales is 150,000. Calculate NPV for each case (18 NPV in total), then draw a graph with three lines (one for unit sales, one for salvage value, and one for WACC). At the end, perform a sensitivity analysis for the project (what you have seen, what conclusions you can make?). 3. What is the primary weakness of sensitvity analysis? What are its primary advantages?The expected price of an in one year is $75 and its variance (σ 2) is 0.64. The current price of the asset is $65. The Phibor being used as a reference rate is 7%. The value to the short and to the long would be?
- The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…The expected price of an in one (1) year is ₱75 and its variance (σ 2 ) is 0.64. The current price ofthe asset is ₱65. The Phibor being used as a reference rate is 7%. The value to the short and tothe long would be?The variance of returns for a risky asset is 45%. The variance of the error term, Var(e) is 25%. What portion of the total risk of the asset, as measured by variance, is SYSTEMATIC? (Hint: Answer is a %.)
- Consider the information below, compute the expected return, variance, and standard deviation. Show the solution. Probability Return of Assets 25% .30 25% .050 25% .100 25% .280Financial asset EGGO requires a $3,000 investment which will return $2,000 twenty percent of the time; $5,000 fifty percent of the time, and $4.500 the rest of the time. Calculate the expected value, the expected return, the variance, and the standard deviation of financial asset EGGO. Show all your calculations.Assume that an investment is expected to generate the following returns: a 10% chance of a $1,400 return, a 50% chance of a $6,600 return, and a 40% chance of a $1,500 return. What is the expected rate of return on this investment? Note: The solution must be displayed on an Excel sheet using Excel functions such as =PV(...) and =FV(...) etc.
- In a regression of the single-index model, the R-square is 66%, residual variance is 0.02, beta estimate is 1.3. What is the variance of the market excess return? Answer: (in decimal format, keep 4 decimal places).Newport, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statistics Multiple R R Square Observations 0.7225 0.8500 30 Coefficients Standard Error T Stat P-Value 0.021 Intercept Production (X) 31,000 5.87 3,493 2.86 0.4640 14.30 0.000 a. What is Newport's total fixed cost? Total Fixed Cost b. What is Newport's variable cost per unit? (Round your intermediate calculations to 2 decimal places.) Variable Cost per unit c. What total cost would Newport predict for a month in which they sold 5,000 units? Total Costs d. What proportion of variation in Newport's cost is explained by variation in production? (Round your intermediate calculations to 2 decimal places.) Proportion of VariationA project’s coefficient of variation is 0.55. The project has a positive coefficient of correlation of 0.20. The expected value is $1,200. What is the standard deviation?