Consider the information given on two products and their activity usage: laser printer inkjet printer units produced 1,000 4,000 setup hours 800 400 inspection hours 500 500 machine hours 200 1,000 suppose that machine hours are used to assign all overhead costs to the two products. select the best answer from the following:
a. laser printers are overcosted, and inkjet printers are undercosted.
b. laser printers and inkjet printers are accurately costed.
c. laser printers are undercosted, and inkjet printers are overcosted.
d. using inspection hours to assign overhead costs is the most accurate approach.
e. none of these.

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?