A manufacturer of a consumer electronics products expects 2% of units to fail during the warranty...
A robotic insertion tool contains 16 primary components. The probability that any component fails during the warranty period is 0.01. Assume that the components fail independently and that the tool fails if any component fails. What is the probability that the tool fails during the warranty period? Round your answer to four decimal places (e.g. 98.7654)
Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $422,000 for these extended warranties (approximately evenly throughout the year). 1.). Prepare journal entries that summarize sales of the extended warranties (assume all credit sales) and any aspects of the warranty that should be recorded during the year. Prepare journal entries that...
Suppose a computer chip manufacturer rejects 2% of the chips produced because they fail presale testing. Assume the bad chips are independent. Complete parts a through d below. a) Find the probability that the fifth chip they test is the first bad one they find. The probability is 0.018 Type an integer or a decimal. Round to three decimal places as needed.) b) Find the probability they find a bad one within the first 7 they examine. The probability is...
Carnes Electronics sells consumer electronics that carry a 90-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $412,000 for these extended warranties (approximately evenly throughout the year) Required 1-a. Does this situation represent a provision? Yes No 1-b. How should it be accounted for? Revenue is deferred as a liability sale, and recognized on straight-line basis at the time of...
Cames Electronics sells consumer electronics that carry a 90-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $440,000 for these extended warranties (approximately evenly throughout the year) Required: 1-0. Does this situation represent a loss contingency? 1.b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and any aspects of the warranty...
Carnes Electronics sells consumer electronics that carry a 90-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $444,000 for these extended warranties (approximately evenly throughout the year). Required: 1-a. Does this situation represent a loss contingency? 1.b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and any aspects of the warranty...
The probability that your call to a service line is answered in less than 30 seconds is 0.65. Assume that your calls are independent. (a) If you call 10 times, what is the probability that exactly 9 of your calls are answered within 30 seconds? Round your answer to four decimal places (e.g. 98.7654) (b) If you call 20 times, what is the probability that at least 16 calls are answered in less than 30 seconds? Round your answer to...
The probability that your call to a service line is answered in less than 30 seconds is 0.75. Assume that your calls are independent. (a) If you call 10 times, what is the probability that exactly 9 of your calls are answered within 30 seconds? Round your answer to four decimal places (e.g. 98.7654). 0.1877 (b) If you call 20 times, what is the probability that at least 16 calls are answered in less than 30 seconds? Round your answer...
Suppose a computer chip manufacturer rejects 5% of the chips produced because they fail presale testing. Assume the bad chips are independent. Complete parts a through d below. a) Find the probability that the fifth chip they test is the first bad one they find. The probability is (Type an integer or a decimal. Round to three decimal places as needed.) b) Find the probability they find a bad one within the first 7 they examine The probability is (Type...
A.J. Smith Electronics is a retail consumer electronics company that also sells extended warranty contracts for many of the products that it carries. The extended warranty provides coverage for three years beyond expiration of the manufacturer’s warranty. In 2019, A.J. Smith sold extended warranties amounting to $1,700,000. The warranty coverage for all of these begins in 2020 and runs through 2022. The total expected cost of providing warranty services on these contracts is $500,000. How should A.J. Smith recognize revenue...