Decision making process and management

Without the advertising the expected profit is (0.70 x 200,000) + (0.3 x 70,000) = $161,000 With the advertising the expected profit is (0.95 x 200,000) + (0.05 x 70,000) = $193,500 Therefore the most they will pay for advertising is 193,500 – 161,000 = $32,500. Have you watched my free lectures on this? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.