Jake Black Has an Opportunity to Start an Automobile Pollution

question 27

Essay

Jake Black has an opportunity to start an automobile pollution inspection business.After extensive studies,he has developed the following set of projected annual data on which to make his decision:
$\begin{array}{lr}\text { Direct service labor } & \$ 330,000 \\\text { Variable service overhead costs } & 260,000 \\\text { Fixed service overhead costs } & 250,000 \\\text { Selling expenses } & 160,000 \\\text { General and administrative expenses } & 200,000 \\\text { Desired profit } & 102,000 \\\text { Cost of assets employed } & 600,000\end{array}$
Black believes that his company will inspect 100,000 automobiles per year.The company earns an average of 20 percent return on its assets.
a. Compute the projected cost for inspecting each automobile.
b. Determine the price to charge for inspecting each automobile using the gross margin pricing method.
c. Using the return on assets pricing method, compute the unit price to charge for this service.

Comprehend the role of social proof in persuasion.

Recognize the importance of credibility and framing in persuasive communication.

Analyze the factors influencing the effectiveness of a persuasive message.

Understand the components and process of persuasion.

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Definitions:

Population Locations

Refers to the geographical distribution or positioning of individuals within a given population.

Randomized Block Experiment

An experimental design that involves dividing subjects into blocks based on certain characteristics before randomly assigning treatments within each block to reduce variation.

Friedman Test

A non-parametric statistical test for detecting differences in treatments across multiple test attempts.

Rejection Region

A statistical term referring to the range of values for which a null hypothesis is rejected in hypothesis testing.