Ling Li of Li Windows, Inc. is considering making a change in the material the firm uses for panes in its residential window line. The new material has a slight mirror attribute that assists in reflecting ultra-violet light and restricts the transmission of heat. The new material will raise the cost of a standard window by$3.76. The current window is in the mature stage of the life cycle and with no modifications, Li has estimated that sales of the window line will be 240,000 units per year for the next 5 years with a probability of 0.3, and has a 0.70 probability of selling180,000 units per year over the five years. The standard profit margin of a window unit is $45. With the new glass material, the selling price per unit can be increased by $5 (but with the addedcost, the net increase in profit margin =(($45plus$5)minus$3.76)= $46.24). However, Li estimates that the demand for the newly designed window will be 210,000 units with a probability of 0.6, and that there will be a 0.4 probability of sales of 150,000 units. Choose the correct decision tree that corresponds with the decision made by Ling Li.
A. No change New material High demand High demand Low demand Low demand
B. No change New material High demand Low demand
C. No change New material High demand Low demand
D. No change New material High demand High demand Low demand Low demand
Answers: 3
Business, 21.06.2019 21:30
Dr. dow jones wants to know whether a problem-based approach to teaching economics will result in higher academic performance than his traditional method. of the six sections of economics 101 at his university, dr. jones randomly assigns three sections to the traditional method and three sections to the problem-based method for unit 1 of the course. then all sections switch the instructional method for unit 2. he plans to compare the performance of the two groups of sections on their unit 1 and unit 2 exams. this study employs a design.
Answers: 3
Business, 22.06.2019 02:30
Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be
Answers: 1
Business, 22.06.2019 05:00
Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
Answers: 3
Business, 22.06.2019 07:50
Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?
Answers: 1
Ling Li of Li Windows, Inc. is considering making a change in the material the firm uses for panes...
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