Florentino Allers is the production manager of Electronics Manufacturer. Due to limited capacity, the company can only produce one of two possible products:
An industrial motherboard with a 75% probability of making a profit of $1 million and a 25% probability of making a profit of $120,000.
A regular motherboard with a 100% chance of making a profit of $660,000.
Florentino will get a 20% bonus from his department. Florentino has the responsibility to choose between the two products and is more of a risk-taker, more so than most of the top management at Electronics Manufacturer.
a. Which option is Florentino more likely to choose and why?
b. Which option would the company be more likely to choose and why?
c. What changes should the company make to Florentino's compensation to avoid unnecessary risks?
Answers: 3
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Business, 22.06.2019 10:30
The advertisement demonstrates a popular way companies try to sell a product. what should consumers consider when it comes to the price of this product? it includes shipping and handling costs. it takes into account maintenance costs. it explains why this price is a good deal. it makes the full cost appears lower than it is.
Answers: 1
Business, 22.06.2019 12:40
When cell phones were first entering the market, they were relatively large and reception was undependable. all cell phones were essentially the same. but as the technology developed, many competitors entered, introducing features unique to their phones. today, cell phones are only a small fraction of the size and weight of their predecessors. consumers can buy cell phones with color screens, cameras, internet access, daily planners, or voice activation (and any combination of these features). the history of the cell phone demonstrates what marketing trend?
Answers: 3
Florentino Allers is the production manager of Electronics Manufacturer. Due to limited capacity, th...
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