subject
Business, 11.03.2020 17:54 Rusven

MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 95 comma 000 units at $600 each, with a probability of 0.46 and a 0.54 probability of 65 comma 000 at $600. If, however, he uses the value analysis team (option b), the firm expects sales of 80 comma 000 units at $750, with a probability of 0.61 and a 0.39 probability of 70 comma 000 units at $750. Value engineering, at a cost of $100 comma 000, is only used in option b. Which option has the highest expected monetary value (EMV)?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 06:40
At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.
Answers: 1
question
Business, 22.06.2019 18:00
When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?
Answers: 1
question
Business, 22.06.2019 20:00
How many organs are supplied at a zero price? (b) how many people die in the government-regulated economy where the government-set price ceiling is p = 0? the quantity qd – qa. the quantity qe – qa. the quantity qd – qe. (c) how many people die in the market-driven economy?
Answers: 1
question
Business, 23.06.2019 09:00
Describe at least four ways you can take money out of a checking account
Answers: 2
You know the right answer?
MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with p...
Questions