Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 5.4%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.4%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 14%, and the probability of a "super-event" that would disable both at the same time is estimated to be 0.18%. ​
a) The probability that both suppliers will be disrupted using option 1 is __ enter your response here ​(round your response to five decimal​ places). ​
b) The probability that both suppliers will be disrupted using option 2 is __ enter your response here ​(round your response to five decimal​ places).
c) Which option would provide the lowest risk of a total shutdown? Option 1 or Option 2

Answers

Answer 1

The probability that both suppliers will be disrupted using option 1 is 0.00076.

a) the probability that both suppliers will be disrupted using option 1 is 0.00076.

to calculate the probability of both suppliers being disrupted in option 1, we need to multiply the unique-event risks of the individual suppliers by the probability of a super-event that would disable both. the calculation is as follows:

probability = (unique-event risk of supplier 1) * (unique-event risk of supplier 2) * (probability of a super-event)

= 0.054 * 0.054 * 0.014

= 0.000076 00076.

b) the probability that both suppliers will be disrupted using option 2 is 0.0004536.

similarly, to calculate the probability of both suppliers being disrupted in option 2, we multiply the unique-event risks of the individual suppliers by the probability of a super-event. the calculation is as follows:

probability = (unique-event risk of supplier 1) * (unique-event risk of supplier 2) * (probability of a super-event)

= 0.14 * 0.14 * 0.018

= 0.0004536

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Related Questions

Tea Party is a purveyor of fine teas from all over the world. The manager at Tea Party noticed that when the new variety of tea arrived the sales of black tea, the most popular item, started to decline. Which of the following explains Tea Party's experience of brand cannibalization? 19. 20. 21. 22. 23 . A tea manufacturer introduces a new brand of tea that has the unintended result of promoting the sales of an existing brand of another manufacturer. b. A tea manufacturer introduces a new brand of tea that eats into the sales of an existing tea brand in its product mix Ос. A tea manufacturer introduces a new brand of tea that eats into the sales of an existing brand of another manufacturer 24 25. 26. 27. A tea manufacturer introduces a new but inferior brand of tea to promote the sales of an existing tea brand in its product mi

Answers

Tea Party's experience of brand cannibalization is: A tea manufacturer introduces a new brand of tea that eats into the sales of an existing tea brand in its product mix.

Brand cannibalization occurs when a company's new product decreases sales of the company's existing products.

In this case, the Tea Party's experience of brand cannibalization happened because the introduction of a new variety of tea caused the sales of black tea, which was the most popular item, to decline.

Therefore, the explanation that best describes this experience is: A tea manufacturer introduces a new brand of tea that eats into the sales of an existing tea brand in its product mix.

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Which of the following are characteristics of hard money? i. donations from individuals and interest group pacs ii. regulated by the federal election commission iii. goes directly to a political candidate iv. can be used for advertising or other campaign expenses a. i, ii, iii, and iv b. i and ii only c. i, iii, and iv only d. ii, iii, and iv only please select the best answer from the choices provided a b c d

Answers

The characteristics of hard money include donations from individuals and interest group PAC'S, and they are regulated by the Federal Election Commission.

What is hard money?

Hard money and soft money are often used to describe the type of currency and also refer to political currency in the United States.

These two combined factors are the definition of what is considered "hard money" in politics.

Hard money is separated from soft cash, because the latter comes from a donation that can be controlled by the Federal Election Commission.

Thus, the correct answer is option B.

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Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following scenarios.
a. The market for gasoline
i. Scenario 1: Electric cards have increased in popularity
ii. Scenario 2: The price of sports utility vehicles rises.
b. The market for the cardigans
i. Scenario 1: New knitting machines are invented.
ii. Scenario 2: A caterpillar infestation destroys most of the cotton crop in Barbados
c. The market for shrimp
i. Scenario 1: More people become heath conscious and realize the high cholesterol content of seafood.
ii. Scenario 2: The price of fishing bait has decreased.

Answers

The demand for gasoline in the market.  Electric vehicles have gained considerable popularity.

What is  effect on the demand curve?

As electric cars become more popular, there will be a decrease in the demand for gasoline, causing a shift in the demand curve. The demand curve will experience a shift towards the left as a consequence.

The upsurge in the number of electric cars on the market has no direct influence on the supply curve for gasoline. The price point and volume that are balanced: For gasoline, the equilibrium price will experience a decline, and so will the equilibrium quantity.

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Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium

Sergei’s boss has very strong opinions and often frowns upon questions from the team. This creates an environment where everyone just agrees with the boss decisions without questioning them

Answers

Knowing and comprehending each team member's opinions personality type will enable you to assign tasks in a way that best suits their interests and passions.

By doing this, you will raise team morale and productivity to their highest levels. Therefore, I always let my manager know when I'm having an issue. I jot out a list of my annoyances. I request a meeting with my employer opinions and explain these issues in detail. I want to be sure I'm not coming out as rude or sounding like I'm making any accusations against my supervisor. Good staff knowledge results in higher output and results.

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The difference between the total value added and the total costs incurred is called the ________ of the value chain. group of answer choices

Answers

The difference between the total value added and the total costs incurred is called the margin of the value chain.

The margin represents the additional value created by a company through its primary and support activities in the value chain.

In the context of the value chain concept developed by Michael Porter, value added refers to the increase in value that occurs at each stage of the production process. It is the difference between the value of the final product or service and the cost of the inputs used to produce it. Value added can be created through various activities such as manufacturing, marketing, distribution, and customer service.

On the other hand, costs incurred refer to the expenses associated with performing the activities in the value chain. These costs include raw materials, labor, overhead expenses, marketing expenses, and other operational costs.

The margin of the value chain is an important indicator of a company's profitability and efficiency. A higher margin indicates that the company is able to generate more value and revenue from its activities while keeping costs under control. It signifies the company's ability to create and capture value in the market, ultimately contributing to its competitive advantage and financial success.

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Which of the following is the term for the amount of interest paid on a balance carried each month?
Finance charges
Grace period
Minimum payment
Annual fee

Answers

Option (a), The term for the amount of interest paid on a balance carried each month is "Finance charges."

This refers to the amount of interest that is charged on a balance carried over from month to month. Finance charges are typically calculated as a percentage of the outstanding balance and can vary depending on factors such as the interest rate and the length of time the balance has been carried over. It is important for consumers to understand how finance charges are calculated and to make timely payments to avoid accruing excessive interest charges.
Finance charges represent the cost of borrowing money and are typically expressed as an annual percentage rate (APR). These charges accrue on the unpaid balance each month.

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a woman sells her home for $450 000. she had purchased it for $300 000 and has lived there for 3 years. how much will she owe to IRS due to the gain on the sale?

Answers

Answer: $0

Explanation:

As a single homeowner, you are allowed to sell your house and get a $250,000 exemption on capital gains tax so long as you had stayed in the house for 2 years or more out of the last 5 years.

The woman in question has stayed in her home for 3 years when she sold it so she qualifies for the exemption.

Her capital gain is:

= Selling price - cost price

= 450,000 - 300,000

= $150,000

This is less than the exemption of $250,000 so the woman will be totally exempted from capital gains tax.

No amount will be gained by the woman

The amount that every house owner is exempted to gain is $250,000

The woman sold her house for $450,000

She purchased the house for $300,000

The gain can be calculated as follows;

$450,000-$300,000

= $150,000

This amount is less than $250,000 hence there is no gain

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piaget’s concrete operational stage is characterized by the active, appropriate use of __________.

Answers

Piaget’s concrete operational stage is characterized by the active, appropriate use of: logic.

Jean Piaget was a developmental biologist and psychologist who was born on the 9th of August, 1896 in Neuchâtel, Switzerland.

Piaget worked extensively on cognitive development in infants and teenagers based on the following:

Judgement.Knowledge.Thoughts.

Jean Piaget's stages of cognitive development in an ascending order includes;

I. Sensorimotor stage.

II. Preoperational stage.

III. Concrete operational stage.

IV. Formal operational stage.

The concrete operational stage is typically described as age 7 through age 11, at which the child thinks logically.

In conclusion, the active, appropriate use of logic is a feature of John Piaget’s concrete operational stage.

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Your organization has been developing a new product for the last three years. The technical specifications of the product were leaked before the product's official release. As a result of the leak, your company's main competitor is changing the specifications of their own product, releasing it earlier than your product, and planning on acquiring the manufacturer your company uses to create vital digital circuits. News of the competitor's plans has caused the majority of investors to pull their funding from your company. Based on typical commercial data classification levels, which data classification level was breached

Answers

Based on commercial data classification levels, it is correct to say that the sensitive data level has been breached.

What is the data sensitive level?

Corresponds to data breaches that would negatively impact a business, jeopardizing operations and market positioning, such as leaking financial and intellectual property data.

Therefore, information security must be a criterion to be achieved in organizations and all their processes to avoid consequences of a data leak.

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Money needed to expand for additional inventory, equipment, marketing cost, employees, etc. is known as which of the following? Competitive risk Market analysis Marketing Expansion capital

Answers

Answer:

Expansion capital

Explanation:

Expansion capital can be defined as the money that a company uses to expand itself and business. Expansion capital is always included in company balance sheets. Expansion capital is also known as growth capital.

Expansion or growth money usually covers additional inventory, equipment, marketing cost, employees, etc as seen in the question.

Cheers.

Why is it important to conduct market research on your target audience before building your marketing plan

Answers

its important to conduct market research on your target audience before building your marketing plan because you need to consider who your potential customers are before deciding on marketing strategies. Customers enjoy sharing their opinions, so market research will make your product sell more.

"According to Gartner Research, the data analytics market has split into two segments: the traditional _____ market and the newer __________ market. "

Answers

Answer: BI; data discovery

Explanation:

According to Gartner Research, the data analytics market has split into two segments: the traditional BI market and the newer data discovery market.

Data analytics is when raw materials are being analyzed scientifically in order to derive conclusions about a particular information.

Data analytics tools and technologies are data discovery, data visualization, and also geospatials.

Today netflix is primarily focused on _____________, the default option for consumers.

Answers

Today netflix is primarily focused on digital distribution , the default option for consumers.

Netflix

Netflix, Inc. is a Los Gatos, California-based subscription streaming service and production company. It was founded on August 29, 1997, in Scotts Valley, California, by Reed Hastings and Marc Randolph. It provides a library of films and television shows through distribution agreements as well as its own works, known as Netflix Originals. It is available worldwide except Mainland China, Syria, North Korea, and Russia.

Netflix's scalability in DVD-by-mail is built on three advantages where the company's size outstrips all competitors: the size of the company's distribution network, the size of the company's client base.

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In the context of termination of an offer, ________ occurs when an offeror retracts the offer before the acceptance. Group of answer choices reversion rejection revocation rescission novation

Answers

In the context of termination of an offer, revocation occurs when an offeror retracts the offer before the acceptance.

Termination of a proposal contract law is in which the offer is terminated earlier than the alternative side has the possibility to accept or reject it simply. This is known as “termination of a suggestion,” and there may be some reasons it may manifest.

Whoever makes an offer can revoke it as long as it hasn't yet been widespread. This means if you make a proposal and the alternative birthday party wants a while to suppose it via, or makes a counteroffer with modified terms, you can revoke your original offer.

Revocation is an annulment or cancellation of a declaration or agreement. inside the context of contracts, revocation may discuss with the offeror canceling a suggestion.

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A large publicly traded company will receive a major financial benefit from the sale of its stock ________.
a. when the stock is traded on the New York Stock Exchange
b. each time a shareholder buys or sells the stock
c. when it offers the stock as an employment benefit
d. at the initial public offering

Answers

Answer:

d. at the initial public offering

Explanation:

The initial public offering, or the IPO, is the process by which shares of a company are sold to investors for the first time in the exchange market. Through the IPO process, a private company transforms into a public company.

The IPO process generates a huge amount of capital for the issuing company. As the company offers new shares, it receives money from investors. The IPO is different from normal trading in the stock exchange, where share changes hands between investors. The initial public offering is conducted at the primary market, where all proceeds apart from the investment bank's fee go to the issuing company.

You plan on making a $235. 15 monthly deposit into an account that pays 3. 2% interest, compounded monthly, for 20 years. At the end of this period, you plan on withdrawing regular monthly payments. Determine the amount that you can withdraw each month for 10 years, if you plan on not having anything in the account at the end of the 10 year period and no future deposits are made to the account. A. $769. 27 b. $767. 23 c. $78,910. 41 d. $79,120. 84.

Answers

Answer:

10

Explanation:

The amount of money that can be withdrawn each month for 10 years is equal to: A. $769. 27.

Given the following data:

Time = 20 yearsMonthly payment = $235.15Interest rate = 3.2%

To determine the amount of money that can be withdrawn each month for 10 years:

First of all, we would convert the compounded interest rate into an effective monthly interest rate as follows:

\(r = \frac{0.032}{12} = 0.00267\)

Next, we would calculate the future value for these annuities by using this formula:

\(A = \frac{P[(1+r)^{12t} - 1]}{r}\)

Where:

A is the future value.P is the monthly payment or principal.r is the effective monthly interest rate.

Substituting the given parameters into the formula, we have;

\(A = \frac{235.15[(1+0.00267)^{12 \times 20}\; - \;1]}{0.00267}\\\\A = \frac{235.15[(1.00267)^{240}\; - \;1]}{0.00267}\\\\A = \frac{235.15[1.8964\; - \;1]}{0.00267}\\\\A = \frac{235.15[0.8964]}{0.00267}\\\\A = \frac{210.789}{0.00267}\)

A = $78,947.19

Now, we can the amount of money that can be withdrawn each month for 10 years by using this formula:

\(A = \frac{P[(1+r)^{12t} - 1]}{r(1+r)^{12t}}\)

Making P the subject of formula, we have:

\(P = \frac{A[r(1+r)^{12t}]}{(1+r)^{12t} - 1}\)

Substituting the given parameters into the formula, we have;

\(P = \frac{78,947.19[0.00267(1+0.00267)^{12 \times 10}]}{(1+0.00267)^{12 \times 10} - 1}\\\\P = \frac{78,947.19[0.00267(1.3771)]}{1.3771 - 1}\\\\P = \frac{290.278}{0.3771 }\)

P = $769.27

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Describe how you will pay for your schooling. Provide information on applying for
OSAP or student loans, and provide detailed information about one possible bursary,
scholarship or grant you can obtain.

Answers

You can only be eligible for OSAP if you don't have enough money from other sources to cover your college or university expenses. The income that you report to OSAP generally needs to match what you reported to the Canada Revenue Agency (CRA) when you filed your taxes.

Question 5 of 10
When gathering information, which of the following tasks might you need to
perform?
A. Apply standards, such as measures of quality, beauty, usefulness,
or ethics
B. Seek out ideas from others and share your own ideas
C. Study objects, conduct lijsts, research written materials, and ask
questions
D. Fill out forms, follow procedures, and apply math and science
SEN

Answers

I’m pretty sure the answer is option C

Consider the following game. There is a 80% chance that you receive $20, a 15% chance that you receive $40, and a 5% chance that you receive $100. What is the expected value, in dollars, of this game? do not enter a dollar sign.

Answers

The expected value of the game is $27.

To calculate the expected value, we multiply each possible outcome by its corresponding probability and sum them up. In this game, there is an 80% chance of receiving $20, a 15% chance of receiving $40, and a 5% chance of receiving $100.

To find the expected value, we multiply the probability of each outcome by its monetary value and sum them up:

Expected Value = (0.80 × $20) + (0.15 × $40) + (0.05 × $100)

Expected Value = $16 + $6 + $5

Expected Value = $27

The expected value represents the average amount of money we can expect to win from this game if we were to play it many times. In this case, the expected value of $27 means that if we were to play this game repeatedly, on average, we would expect to win $27 per game. However, it's important to note that the expected value does not guarantee that we will win exactly $27 every time we play the game, as individual outcomes can vary. The expected value serves as a useful indicator to understand the potential value or outcome of a game or event.

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como hacen las siclas para que uno no se caiga

Answers

con materials duro que aguantan bastante peso.

Answer:

lo que dijo thay

Explanation:

For the year ending December​ 31, 2018, Sparks Electric expects net cash provided by operations of ​, net cash used by investing activities of ​, and net cash provided by financing activities of . Sparks plans to spend to add a warehouse for its operations and pays in cash dividends. What is the amount of free cash​ flow?

Answers

Answer: C) $40,000

Explanation:

The free cash flow to a company is that amount of cash that it has generated from its operations that it can therefore use to purchase assets and pay off dividends.

Cash from operations = $328,000

Dividends = $31,000

Spending on warehouse (asset) = $257,000

Free cash flow = 328,000 - 257,000 - 31,000

= $40,000

PLEASE HELP
Just give me ideas please

PLEASE HELP Just give me ideas please

Answers

- Abuse of power

- Cancel Culture

- Lack of interest

- School Curriculum

- Conflict in trade

- Mental health

- Loss of a loved one

- Natural talent vs practice

Select the examples that best demonstrate likely tasks for Foreign Service workers. Check all that apply.


O Lana attends a legislative session in Washington, D.C.

O Pei creates a plan for making a new park in her hometown.

O Mike operates airplanes at a US military facility in Germany.

O Katrina provides medical care for embassy workers in Kenya.

O Peter speaks Spanish with foreign officials at a political event in Mexico.

O Gale helps a US citizen in India with a passport problem.

Answers

Answer:

Katrina provides medical care for embassy workers in Kenya.Gale helps a US citizen in India with a passport problem.

Explanation:

A Foreign Service Officer represents their home country in foreign countries.  They are employed by the government to serve its interest and the interest of its citizens in foreign countries.

Some of the responsibilities of a foreign service officer are

Offering assistance and support to the home country's citizens traveling abroad.Assisting foreign nationals wishing to  travel to the home country Working on bilateral partnerships that promote commercial and business interests of the home country abroad. Managing the country's embassy and promoting diplomacy.

Answer:

It's 4, 5, and 6

Explanation:

hope this helps. i got it wrong for you ;-;

although china has adopted many_______ practices since the 1950s

Answers

Although China has adopted many socialist practices since the 1950s.

it has also embraced some capitalist principles and opened up to the world economy. This economic transformation began in the late 1970s under the leadership of Deng Xiaoping, who implemented policies such as the Household Responsibility System and the establishment of Special Economic Zones. These policies encouraged individual entrepreneurship and foreign investment, leading to significant economic growth and development. However, the government still maintains a high degree of control over certain industries and sectors, and there remains a strong emphasis on socialist values and principles. Overall, China has blended elements of socialism and capitalism to create its unique economic model, which has proven to be successful in many ways.

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long-range planning as a management function is more important:

Answers

Long-range planning as a management function is crucial for the success of any organization. It involves forecasting future trends, setting goals, and identifying strategies to achieve those goals.

Effective long-range planning provides a roadmap for the organization, helping it to adapt to changes in the business environment and stay ahead of its competitors. It also helps to ensure that resources are allocated efficiently and that the organization's resources are utilized optimally.

Long-range planning enables managers to make informed decisions, based on data-driven insights, and reduces the risk of making hasty decisions that may lead to failure.

In conclusion, long-range planning is a critical function of management that helps organizations to achieve their objectives, remain competitive, and succeed in today's fast-paced business environment.

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Which of the following is a good suggestion for managers when conducting interviews?
a. Plan which questions you want to ask, and ask them to every interviewee.
b. Do more than half of the talking to make sure you are sharing enough about the company and its culture.
c. Ask questions spontaneously to get the most straightforward answers from the candidate.
d. Ask about the candidate's family to show personal interest

Answers

The good suggestion for managers when conducting interviews is to plan which questions you want to ask and ask them to every interviewee.

When conducting interviews, it is important for managers to have a structured approach. This means planning which questions to ask and asking them to every interviewee to ensure that the same information is gathered from each candidate.

This will also help to ensure that the hiring process is fair and objective, as each candidate will be evaluated using the same criteria.
On the other hand, managers should not do more than half of the talking to make sure they are sharing enough about the company and its culture, because the focus of the interview should be on the candidate and their qualifications. Additionally, asking questions spontaneously is not recommended as it can lead to inconsistencies in the interview process. Finally, asking about the candidate's family is not relevant to their qualifications or ability to do the job, and could be seen as intrusive or unprofessional.
Overall, planning which questions to ask and asking them to every interviewee is a good suggestion for managers when conducting interviews. This approach will help to ensure that the hiring process is fair, objective, and consistent, and will help managers to identify the best candidate for the job.

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You have just deposited $10,500 into an account that promises to pay you an annual interest rate of 6.4 percent each year for the next 5 years. You will leave the money invested in the account and 15 years from today, you need to have $29,750 in the account. What annual interest rate must you earn over the last 10 years to accomplish this goal?

Answers

Answer:

7.59%

Explanation:

Calculation for What annual interest rate must you earn over the last 10 years to accomplish this goal

Future value required=[Amount of deposit*(1+6.4%)^5]*(1+I)^10

$29,750=[$10,500*(1+6.4%)^5]*(1+I)^10

$29,750=[$10,500*(1+0.064)^5]*(1+I)^10

$29,750=[$10,500*(1.064)^5]*(1+I)^10

$29,750=[$14,318.497198]*(1+I)^10

(1+I)^10=[$29,750/$14,318.497198]

(1+I)^10=2.077732013

(1+I)=2.077732013^(1/10)

(1+I)=1.07586791

Hence, annual interest rate will be:

Interest rate, I=(1.07586791-1)*100

Interest rate=0.07586791*100

Interest rate=7.586791%

Interest rate=7.59% (Approximately)

Therefore the annual interest rate that you must earn over the last 10 years to accomplish this goal is 7.59%

which is a cause of system unavailability? A) natural disaster B) incomplete testing C) poor password practices D) poor physical security

Answers

Answer:

D) poor physical security

Explanation:

Answer:

A natural disaster

Explanation:

I know it seems weird but I put that and my test on Plato scored it as right

Suppose a mutual fund has 10 million shares outstanding, assets with a total value of $30 million,of which $500,000 is cash, and fund liabilities of $500,000. What is the current NAV per share

Answers

Answer:2.95

Explanation:

Based on the given assets, cash fund, and liabilities, the Mutual fund's NAV per share is $2.95.

What is the Mutual Fund's NAV per share?

This can be found by the formula:

= (Assets + Cash - Liabilities)/Number of Shares

Solving gives:

= (30,000,000 - 500,000) / 10,000,000

= 29,500,000 / 10,000,000

= $2.95 per share

In conclusion, the NAV per share is $2.95 per share.

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16-26 Joint-cost allocation, process further. Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce crude oil, natural gas liquids (NGL), and natural gas (measured in liquid equivalents). An overview of the process and results for August 2017 are shown here. (Note: The numbers are small to keep the focus on key concepts.) A federal law that has recently been passed taxes crude oil at 30% of operating income. No new tax is to be paid on natural gas liquids or natural gas. Starting August 2017, Sinclair Oil & Gas must report a separate product-line income statement for crude oil. One challenge facing Sinclair Oil & Gas is how to allocate the joint cost of producing the three separate salable outputs. Assume no beginning or ending inventory. Required: 1. Allocate the August 2017 joint cost among the three products using the following: a. Physical measure method b. NRV method 2. Show the operating income for each product using the methods in requirement 1. 3. Discuss the pros and cons of the two methods to Sinclair Oil & Gas for making decisions about product emphasis (pricing, sell-or-process-further decisions, and so on). 4. Draft a letter to the taxation authorities on behalf of Sinclair Oil & Gas that justifies the joint-cost-allocation method you recommend Sinclair use.

Answers

. We are positive that this method is not detrimental to decision-making processes and would be an asset to our company in allocating the joint costs of producing the three separate salable outputs.

We appreciate your time and attention to this matter and look forward to hearing back from you shortly.Respectfully,Sinclair Oil & Gas16-26 Joint-cost allocation, process further

: 1. Physical measure methodXGE3:ICR8:ING4

:Total:Joint costAllocation:Physical measure method: $67500$45000$67500$180000(90/150) × $180000 =$108000 (60/150) × $180000 =$72000 (90/150) × $180000 =$108000 $2880002. NRV methodXGE3:ICR8:ING

4:Total:Joint costAllocation:NRV Method:$64500$43000$64500$172500((($36.75 + $20.00) / $70.00) × $172500) =$86437.50((($24.50 + $13.50) / $70.00) × $172500) =$46162.50((($36.75 + $20.25) / $70.00) × $172500) =$96900.00$229500Operating income:ICR8:ING4:XGE3:

Total:Physical measure method: $36000($45000-$108000)$0($67500-$108000)$67500($67500-$108000) $36000 -$45000 -$36000 $9000 -$54000NRV method: $26612.50($43000-$46162.50)$0($86437.50-$64500)$21937.50($64500-$42562.50) $26612.50 -$43000 -$21937.50 -$38325.00Pros and Cons of the two methods to Sinclair Oil & Gas for making decisions about product emphasis (pricing, sell-or-process-further decisions, etc.):Method Pros ConsPhysical MeasureIt is easier to apply and comprehend.When there is a significant disparity in revenue, this method can produce inaccurate outcomes.It is used to distribute joint costs based on the physical qualities of the products generated.

There are no disadvantages to this approach in terms of decision-making.NRV MethodNRV is a more reliable method since it is based on the estimated net realizable value of a commodity.A single product's net realizable value might be challenging to estimate.The NRV approach assists in identifying the product's usefulness to the company.No method disadvantages in decision-making.Draft a letter to the taxation authorities on behalf of Sinclair Oil & Gas that justifies the joint-cost-allocation method you recommend Sinclair use.

Dear Taxation Authorities,I am writing on behalf of Sinclair Oil & Gas, who recently encountered issues regarding the joint cost of producing three separate salable outputs. We would like to report a separate product-line income statement for crude oil, but we are unsure how to allocate the joint cost. We appreciate the recent federal law that taxes crude oil at 30% of operating income, and no new tax is to be paid on natural gas liquids or natural gas.To that end, we recommend the physical measure method of joint cost allocation because it is easy to apply and comprehend. Although it can produce incorrect outcomes when there is a significant revenue disparity, this method can be used to distribute joint costs based on the physical qualities of the products generated

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