A business is about to commence making and selling a single produdt . the sales forecast and probabilities for the first year are as follows
PROBABILITY ANNUAL SALES
$
0.2 150000
0.5 200000
0.3 250000
Annual fixed cost will be $ 35000 and the contribution to sales ratio for the product will be 20%.
WHAT IS THE EXPECTED VALUE OF THE PROFIT
.
i think answer is 170000 . plzz check if wrong plzz explain
PROBABILITY ANNUAL SALES
$
0.2 150000
0.5 200000
0.3 250000
Annual fixed cost will be $ 35000 and the contribution to sales ratio for the product will be 20%.
WHAT IS THE EXPECTED VALUE OF THE PROFIT
.
i think answer is 170000 . plzz check if wrong plzz explain