subject
Business, 07.03.2020 05:32 raven1619

Spartan utilities distributes natural gas to households in South-West Michigan. Spartan has 25,000 miles of retail gas distribution pipelines. The distribution pipelines sometimes develop leaks due to weather conditions and corrosion. Spartan estimates that the probability of a gas pipeline developing a leak is 0.0002/year/mile of pipeline. Spartan also estimates that an average leaking pipe incident results in $10,000 in repair costs, $5,000 in natural gas lost, $8,000 in compensation to affected parties, $2,000 in other costs such as evacuation, fire safety, public notification etc. Further, the disruption in service results in loss of sales of $20,000 on which Spartan would have earned profits of $4000.a. Estimate the expected annual cost to Spartan of such leakage. b. Suppose an insurance company offer to cover all costs of such leaks except lost sales/profits. The premium is $130,000. Should Spartan utilities buy the insurance?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:50
cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units
Answers: 1
question
Business, 22.06.2019 03:00
50 points mark brainliest 1) the information in the interactive presentation suggests that people a) utilize the perception of others rather that out own perception b) learn more about the positive aspects of perception c) should monitor how perceptual barriers influence our relationship d) spend more times on our personal relationships rather than our professional relationships 2) you are about to take the dog out for a walk but pause to watch the news because you hear the name of your town being mentioned hearing your town being mentioned on the news is an example of a) stimulation b) interaction c) organization d) interpretation- evaluation 3) tamara thinks ivan is upset with her because hes been unusually quiet today to better interpret the situation and communicate appropriately tamara should a) ask ivan why hes quiet and explain that hes being inconsiderate b) leave ivan alone because hes obviously going through something c) ask her guidance counselor for tips on providing therapy to a friend d) examine her own perception and then check in with ivan about his behavior 4) of the following abilities which is the most important to the perceptual checking process a) critical thinking ability b) creative ability c) memorizing ability d) organizational ability
Answers: 2
question
Business, 22.06.2019 11:40
Manipulation manufacturing's (amm) standards anticipate that there will be 5 pounds of raw material used for every unit of finished goods produced. amm began the month of maymay with 8,000 pounds of raw material, purchased 25,500 pounds for $ 15,300 and ended the month with 7,400 pounds on hand. the company produced 4,9004,900 units of finished goods. the company estimates standard costs at $ 1.10 per pound. the materials price and efficiency variances for the month of maymay were:
Answers: 1
question
Business, 22.06.2019 16:00
If the family’s net monthly income is 7,800 what percent of the income is spent on food clothing and housing?
Answers: 3
You know the right answer?
Spartan utilities distributes natural gas to households in South-West Michigan. Spartan has 25,000 m...
Questions
question
Health, 29.09.2019 00:30
question
History, 29.09.2019 00:30
question
Mathematics, 29.09.2019 00:30
Questions on the website: 13722360