Question
In: Statistics and Probability
The ABC Transistor Corporation ships out transistors in lots of 12 (n = 12). 10% of...
The ABC Transistor Corporation ships out transistors in lots of 12 (n = 12). 10% of all transistors produced are defective. ABC promises to repair any defectives which are shipped out. It also gives a money-back guarantee to customers is a lot has more than 2 defectives. The cost of ABC to repair a transistor is $10.00. The money-back guarantee costs ABC $30.00 in addition to repair costs.
1. Computer the probability that a lot of transistors will have more than 2 defectives.
2. For every lot which is shipped out, what is the expected cost to ABC resulting from defective production of transistors?
3. By major rehaul of the production process, the defective rate can be reduced to 5%. The cost of carrying this out, based on debt amortization, is $200,000 per annum. ABC cells approximately 100,000 lots (dozens) of transistors per year. Should ABC reduce the defective rate?
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orchestra answered 1 year agoRelated Solutions
At 12/31/16, ABC Company had the following balances: &n
At 12/31/16, ABC Company had the following balances:
DebitCredit
Accounts Receivable$182,000
Allowance for Doubtful Accounts
$16,500
During 2017 the following transactions occurred:
Accounts receivable of $138,000 were collected, including
accounts of $60,000 on which 2% of sales discounts was allowed. The
company uses the gross method to record sales made on credit.
Several customers notified ABC of bankruptcy, and ABC wrote off
the accounts in the amount of $17,500.
ABC received $5,300 in payment for an account previously...
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ABC Corporation is condsidering an IPO. ABC has 12 million
shares of common stock owned by its founder and early investors.
ABC has no preferred stock, debt, or short-term investments. Based
on its free cash flow projection, ABC's intrinsic value of
operations is $210 million. ABC wants to raise $30 million (net of
flotation costs) in net proceeds. The investment bank charges a 7%
underwriting spread. All other costs associated with the IPO are
small enough to be neglected in...
1. The Australian Maritime Safety Authority has found that 10% of ships have navigation faults (N)...
1. The Australian Maritime Safety Authority has found that 10%
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faults (F), such as non–compliance with regulations for fire
extinguishers. Six percent of ships have both faults. A ship is
selected at random.
(a) Show the sample space and the events N and F as a Venn
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(b) What is the probability the ship has either N or F?
(c) What is the probability the ship has neither...
Can you please type out the answer A random sample of n = 12 individuals is...
Can you please type out the answer
A random sample of n = 12 individuals is selected from a
population with µ = 70, and a treatment is administered to each
individual in the sample. After treatment, the sample mean is found
to be M = 74.5 with SS = 297. Is there evidence to indicate that
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A student must answer 7 out of 10 questions on an exam. Find the number n...
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The Jasper Corporation provides you with the following information for the year ended 12/31/17: &n
The Jasper Corporation provides you with the following
information for the year ended 12/31/17:
Income
Statement Information:
Sales
Revenue
$300,000
Cost of goods
sold
80,000
Gross
margin
220,000
Depreciation
expense
47,000
Uncollectible accounts
expense
1,500
Pension
expense
19,000
Other
expense
25,500
interest
expense
3,000
gain
on the sale of
equipment (2,000)
income
tax
expense
65,000 159,000
Net
income $61,000
Balance Sheet Information:
12/31/16
12/31/17
Cash
$16,000
$36,000
Accounts
Receiveable
56,000
52,000
Allowance for Doubtful
Accounts
(6,000) ...
The Jasper Corporation provides you with the following information for the year ended 12/31/17: &n
The Jasper Corporation provides you with the following
information for the year ended 12/31/17:
Income
Statement Information:
Sales
Revenue
$300,000
Cost of goods
sold
80,000
Gross
margin
220,000
Depreciation
expense
47,000
Uncollectible accounts
expense
1,500
Pension
expense
19,000
Other
expense
25,500
interest
expense
3,000
gain
on the sale of
equipment (2,000)
income
tax
expense
65,000 159,000
Net
income $61,000
Balance Sheet Information:
12/31/16
12/31/17
Cash
$16,000
$36,000
Accounts
Receiveable
56,000
52,000
Allowance for Doubtful
Accounts
(6,000) ...
The Jasper Corporation provides you with the following information for the year ended 12/31/17: &n
The Jasper Corporation provides you with the following
information for the year ended 12/31/17:
Income
Statement Information:
Sales
revenue $ 300,000
Cost
of goods sold 80,000
Gross
margin 220,000
Depreciation
expense 47,000
Uncollectible
accounts expense 1,500
Pension
expense 19,000
Other
expense 25,500
Interest
expense 3,000
Gain
on the sale of equipment (2,000)
Income
tax expense 65,000 159,000
Net
Income $ 61,000
Balance
Sheet Information
12/31/16 12/31/17
Cash $
16,000 $ 36,000
Accounts
Receivable 56,000 52,000
Allowance
for Doubtful
Accounts (6,000) (5,000)
Inventory 83,000 84,000
Equipment 85,000 82,000
Accumulated
Depreciation (6,000) (7,000)
Total $228,000 $242,000
Accounts...
ABC Corporation has 12 million shares outstanding, now trading at 65£ per share. The firm has...
ABC Corporation has 12 million shares outstanding, now trading
at 65£ per share. The firm has estimated the expected rate of
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marginal rate of 35%.
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value...
10 On 7/1/14, ABC sold 12% bonds having a maturity value of $800,000 for $861,771, resulting...
10
On 7/1/14, ABC sold 12% bonds
having a maturity value of $800,000 for $861,771, resulting in an
effective yield of 10%. The bonds are
dated 7/1/14, and mature 7/1/19. Interest is
payable semiannually on July 1 and January 1. ABC uses the
effective interest method of
amortization for bond premium or discount. Record
the adjusting entry for the accrual of interest and the related
amortization on 12/31/14.
Hint: Develop an abbreviated amortization schedule
to accurately determine the interest expense....
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