You Are About to Have a Meeting with Your Manager

question 187

Multiple Choice

You are about to have a meeting with your manager about a raise in your salary.You are going to request an increase of $5,000,but you believe the probability of success to be only 25%.You believe there is a 25% probability your boss will counter with a $3,000 raise and a 25% probability that your boss will offer a $1,000 raise.Finally,there is a 25% probability that you will receive no increase in your salary.What is the expected value of the outcome of your meeting?

• A)$2,250
• B)$9,000
• C)$6,750
• D)$3,000

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Definitions:

Variable Cost

Costs that vary directly with the level of production or service delivery, such as raw materials and direct labor.

Work in Process Inventory

Inventory of unfinished goods that are still in the process of production, accounting for materials, labor, and overhead.

Direct Labour Costs

Direct labour costs are the wages and other associated expenses for employees who are directly involved in the production of goods or services.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, such as utilities, maintenance, and factory equipment depreciation.