The National Sales Manager for "I Colored This" (ICT) T-Shirts

question 98

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the following opportunity loss table showing the potential lost profit for each purchase decision or act from one to four dozen T-shirts. The probability of demand for each state of nature is also shown. What is the expected opportunity loss of purchasing three dozen T-shirts?

• A) 84
• B) 108
• C) 156
• D) 204

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Definitions:

Payroll Tax

Taxes imposed on employers and/or employees, usually calculated as a percentage of the salaries that employers pay their staff.

Capital Intensive Techniques

Production processes that require a high investment in capital assets relative to labor.

Regressive Tax

A tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners.

Proportional Tax

A taxation structure where the rate of tax stays the same, no matter the taxable amount.