Answer:
2 Days
Explanation:
First, there is the need to rewrite the utility function for clarity
U=V^{1/2}
1. The Probability of Falling ill by someone in the family is given as 20%
2. If someone should fall ill, the total number of days that would be spoiled is calculated as:
Total number of vacation= 10 days x Probability to fall ill = 20%
= 10 x 0.2 = 2 days
This means if someone should fall ill based on the probability, then 2 out of the total 10 days can be ruined
3. The number of days for vacation days to enjoy is 10-2 = 8 days
This means if the family gives up 2 days of probable illness, they can still enjoy their vacation.
V= 2 days
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Answer:
3.6
Explanation:
The receivables turnover for the year is calculated as;
= Net sales(credit sales) ÷ Average accounts receivables
Average account receivables
= ($200,000 + $220,000) ÷ 2
= $210,000
Therefore, Receivables turnover
= $750,000 ÷ $210,000
= 3.6
Answer:
$93,600
Explanation:
The computation of the total contribution margin is shown below:
Given that
For 5,100 sales unit, the contribution margin is $91,800
So, for 5,200 sales units, the contribution margin would be
= Contribution margin × new sales units ÷ previous sales units
= $91,800 × 5,200 units ÷ 5,100 units
= $93,600
All other information which is given is not relevant. Hence, ignored it
$16.35 is the new hourly wages. $15 increase by 9% is 16.35