New Jersey Valve Company manufactured 8,200 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor41,900hr. at $14.50 per hr. Direct material purchased33,000lb. at $3.00 per lb. Direct material used23,600lb. The control valve has the following standard prime costs: Direct material3lb. at $2.90 per lb.$8.70 Direct labor5hr. at $14.90 per hr. 74.50 Standard prime cost per unit$83.20 Required: Prepare a schedule of standard production costs for January, based on actual production of 8,200 units. For the month of January, compute the following variances.

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?