Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West East Units produced and sold 30,000 40,000 Selling price per unit $ 8 $ 15 Variable costs per unit 3 5 Direct fixed cost 48,000 110,000 Common fixed cost 40,000 40,000 Common fixed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is: 29) A) $110,000. B) $30,000. C) $102,000. D) $150,000.

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?