A Car Wash Loses $30 on Rainy Days and Makes

question 53

Multiple Choice

A car wash loses $30 on rainy days and makes $120 on days when it does not rain.If the probability of rain is 0.15,calculate expected profit for the car wash.

• A)$90
• B)$76.50
• C)$106.50
• D)$97.50

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Definitions:

General Economic Conditions

The overall state of the economy, including factors like inflation rates, unemployment levels, and GDP growth that affect business operations and decisions.

Common-sized Balance Sheet

A financial statement that presents all items in percentage terms of the total assets for comparison purposes.

Total Liabilities

The sum of all current and long-term obligations that a company owes to others.

Total Current Assets

The sum of all assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.