ABS specializes in repair and maintenance of industrial machines. One repair technician has been assigned to five identical grinding machines for repair and maintenance. The machine breaks down after about 20 hours of use, and breakdowns have a Poisson probability distribution. It takes 6 hours to repair a machine, and repair times follow an exponential distribution. Machine downtime costs the company $250 an hour, and the technician is paid $50 an hour. Determine the total cost per hour.
a. $550.34
b. $582.50
c. $284.50
d. $725.50
b. $582.50
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Defined contribution plans are preferred by companies for all except which of the following reasons?
A. Defined contribution plans may not be at risk if the employer declares bankruptcy. B. Defined contribution plans improve job mobility for the employee. C. Defined contribution plans carry less risk for the employee. D. Defined contribution plans cost less to manage.
Market skimming pricing makes sense under all the following conditions, EXCEPT if ________
A) a sufficient number of buyers have a high current demand B) the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear C) the high initial price does not attract more competitors to the market D) consumers are likely to delay buying the product until its price drops E) the high price communicates the image of a superior product
When interpreting contract language, an arbitrator will look to _______________________________ to determine how prior incidents of the same or similar issues were handled by the employer and union.
Fill in the blank(s) with the appropriate word(s).
A furniture store has a sofa on sale for $399.00, with the payment due one year from today. The store is willing to discount the price at an annual rate of 5% if you pay today. What is the amount if you pay today?
A) $380 B) $399 C) $419 D) $394