A Fast Food Restaurant Just Leased a New Freezer and Food

question 6

Essay

A fast food restaurant just leased a new freezer and food fryer for three years. The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed. The restaurant’s research suggested that during a given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5% twice, 4% three times, and none required more than three repairs.
-The yearly service contract for the food fryer estimates a mean annual cost of $140 with a standard deviation of $40.What is the expected value and standard deviation of the total cost for the service contracts for the freezer and the food fryer?

Understand the concept and application of depreciation methods.

Identify and classify various intangible assets and their amortization.

Grasp the process of asset disposal and recognize gains or losses.

Explain the difference between capital and revenue expenditures.

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Definitions:

Leon Festinger

Leon Festinger was a prominent psychologist best known for developing the theory of cognitive dissonance, which explores the tension that arises from holding conflicting beliefs or attitudes.

Albert Bandura

A psychologist known for his work on social cognitive theory and the concept of self-efficacy.

Martin Seligman

An American psychologist known for his work on the theory of learned helplessness and his contributions to positive psychology, focusing on character strengths and well-being.

Self-discrepancy

The gap between one's actual self and their ideal or ought self, which can lead to feelings of dissatisfaction or discomfort.