Explore BrainMass

Explore BrainMass

    Negotiating a Contract with Employees

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A manufacturing company is negotiating a contract with its employees. The probability that the union will go on strike is 5%. If the union goes on strike, the company estimates that it loose $345,000.00 for the year. If the union does not go on strike, the company estimates it will make $1.2 million dollars. Find the companies expected gain or loss for the year.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:14 pm ad1c9bdddf
    https://brainmass.com/business/business-law/negotiating-contract-employees-52173

    Solution Preview

    There is a 5% chance that the company will lose $345,000.
    There is a 95% chance that the company will gain $1,200,000.

    Now, ...

    Solution Summary

    A company is negotiating a contract with its employees. This makes a higher probability of workers going on strike. This probability is analyzed in the solution.

    $2.19

    ADVERTISEMENT