Given the pay-off table below showing the profit (present value OMR), a firm might expect for three alternative factory investments (X, Y, and Z) under different levels of inflation. Economists have assigned probabilities of (0.2) and (0.3) to the possible states of nature A and B respectively, while C and D have equal probabilities..

	States of nature: amount of inflation
	A	B	C	D
Build factory X	40	50	70	110
Build factory Y	(25)	30	50	90
Build factory Z	30	40	80	20

The Expected Monetary Value of factory (X) is:

(Write the number only)

Answer:

A manufacturing Company has estimated its quarterly demand (units) as shown in the following table. It expects the next demand cycle to be similar to this one and wishes to restore ending inventory, employment, etc., to beginning levels accordingly.

Quarter	Units
1st	2250
2nd	2800
3rd	1700
4th	1600

Each quarterly change of 300 units output has an incremental labour cost of OMR. 1,600, and ending levels must be restored to initial levels. What is the cost associated with changing the work force size?

(Write the number only)

Answer:

A manufacturing company produced 90000 units that sold for OMR 360000. The total variable costs for the units produced were OMR 180000, and the fixed costs were OMR 140000. Assuming that fixed costs remain constant, how many additional units of production will be required for the company to gain a profit of OMR 65000?