Question

A coffee franchise is opening a new store. The company estimates that there is a 70​%...

A coffee franchise is opening a new store. The company estimates that there is

a

70​%

chance the store will have a profit of

​$45,000​,

a 10​%

chance the store will break​ even, and a

20​%

chance the store will lose

​$4,000

Determine the expected gain or loss for this store.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The owner of an antique store estimates that there is a 25​% chance she will make...
The owner of an antique store estimates that there is a 25​% chance she will make $ 2000 when she sells an antique china​ cabinet, a 6060​% chance she will make $ 1250 when she sells the​ cabinet, and a 15​% chance she will break even when she sells the cabinet. Determine the expected gain or loss for the store.
A small software company bids on two contracts. It anticipates a profit of ​$45,000 if it...
A small software company bids on two contracts. It anticipates a profit of ​$45,000 if it gets the larger contract and a profit of ​$20,000 if it gets the smaller contract. The company estimates that there is a 33% chance it will get the larger contract and a 64% chance it will get the smaller contract. If the company does not get either​ contract, it will neither gain nor lose money. Assuming the contracts will be awarded​ independently, what's the...
Due to increased demand in medical supplies, the Medihome Company is planning a new store opening...
Due to increased demand in medical supplies, the Medihome Company is planning a new store opening on January 1. Medihome has talked to other similar retailers and based on that information they have decided to make the following projections for their sales: Cash Sales Credit Sales January $71,600 $43,000 February $33,000 $55,200 March $43,600 $79,800 April $40,200 $90,800 Medihome Co has other lines and knows from experience that 70% of their credit sales will be collected in the month after...
Silver River Company sells Products S and T and has made the following estimates for the...
Silver River Company sells Products S and T and has made the following estimates for the coming year: Product Unit Selling Price Unit Variable Cost Sales Mix S $30 $24 60% T   70   56 40   Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year (5 pts), (b) the estimated number of units of each product necessary to be sold to reach the...
A company needs to determine whether to build a small or large new store. Based on...
A company needs to determine whether to build a small or large new store. Based on the management team's estimate, the chance of the future market being poor, average, or excellent, as well as the return from each decision (small or large) under each market scenario is given in the table below. The managers want to make the decision of wheter to build a small or a large new store using the decision tree model. The decision tree corrresponding to...
Assume UCLA Store sells new college textbooks at the publishers' suggested retail prices and pays the...
Assume UCLA Store sells new college textbooks at the publishers' suggested retail prices and pays the publishers an amount equal to 70% of the suggested retail price. The store's other variable costs average 5% of sales revenue and annual fixed costs amount to $420,000. a. Determine the bookstore's annual break-even point in sales dollars. b. Assuming an average textbook has a suggested retail price of $125, determine the bookstore's annual break-even point in units. c. UCLA Store is planning to...
Lenovo is considering the manufacture of a new laptop. An analyst estimates the probability that the...
Lenovo is considering the manufacture of a new laptop. An analyst estimates the probability that the new laptop is successful is 0.85. If the Laptop is successful it would generate profits of $2,000,000 and if it not successful it would generate profits of $500,000. The development costs for the laptop are $900,000. Should Lenovo proceed with plans for the new laptop? Why or why not? a) No, because the probability of the laptop being successful is not high enough. b)...
Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will...
Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will be $ 67$67 per unit and the fixed costs are estimated to be $ 7308.$7308. The selling price of the product is to be $ 129$129 per unit. Variable selling expense is expected to be $ 20$20 per unit. ​(a) Calculate the contribution margin per unit. ​(b) Determine the contribution rate. ​(c) Calculate the​ break-even point in units. ​(d) Determine the​ break-even point in...
PLEASE SHOW ALL WORK!!! A new car battery is sold with a two-year warranty whereby the...
PLEASE SHOW ALL WORK!!! A new car battery is sold with a two-year warranty whereby the owner gets the battery replaced free of cost if it breaks down during the warranty period. Suppose an auto store makes a net profit of $20 on batteries that stay trouble-free during the warranty period; it makes a net loss of $10 on batteries that break down. The life of batteries is known to be normally distributed with a mean and a standard deviation...
Last year Minden Company introduced a new product and sold 25,700 units of it at a...
Last year Minden Company introduced a new product and sold 25,700 units of it at a price of $94 per unit. The product's variable expenses are $64 per unit and its fixed expenses are $838,800 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT