Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help on how to solve this on excel. Salaries of flail makers Backwards Ltd. manufactures and sells flails. The worker is paid 28

I need help on how to solve this on excel.
image text in transcribed

Salaries of flail makers Backwards Ltd. manufactures and sells flails. The worker is paid 28 Lt per unit. But even if the production demand is low, workers must get the minimum wage, which amounts to 260000 Lt/ month. Administration approached the trade union with a proposition to pay 33 Lt per flail 111 case if workers will sign an agreement without minimum salary requirement. As a trade union delegate you know, that contracts to produce 6000 flails are already signed. Actual production always exceeds the demand, because 2% of flails fail to pass the final testing stage. Additionally, one big contract to produce 5000 flails is still under question. You believe that probability of this contract to be signed is 0,3. Is it worth to accept the proposition? Base your decision on an EMV criterion. Calculate expected value of perfect information. Prepare data table for expected value of perfect information function, when big contract amount changes from 1000 to 8000 flails in steps of 500. Create a chart, visualising the function.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Undergraduates

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

1st Edition

1618531123, 9781618531124

Students also viewed these Finance questions