Nitz' Company is planning to produce a new product, Duhat Soap. A marketing consultant prepared the following payoff probability distribution describing the relative likelihood of monthly sales volume levels and related contribution margin for Duhat Soap: Monthly Sales Volume 15,000 units 18,000 27,000 36,000 45,000 Probability 40% 30% 15% 10% 5% Contribution Margin P 75,000 90,000 135,000 180,000 225,000 If Nitz' Company decides to market Duhat Soap, the expected value of the monthly contribution margin is a. P141,000. c. P106,500. b. P705,000. d. P 21.300.

Nitz' Company is planning to produce a new product, Duhat Soap. A marketing consultant prepared the following payoff probability distribution describing the relative likelihood of monthly sales volume levels and related contribution margin for Duhat Soap: Monthly Sales Volume 15,000 units 18,000 27,000 36,000 45,000 Probability 40% 30% 15% 10% 5% Contribution Margin P 75,000 90,000 135,000 180,000 225,000 If Nitz' Company decides to market Duhat Soap, the expected value of the monthly contribution margin is a. P141,000. c. P106,500. b. P705,000. d. P 21.300.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Nitz' Company is planning to produce a new product, Duhat Soap. A marketing consultant prepared the following payoff probability distribution describing the relative likelihood of monthly sales volume levels and related contribution margin for Duhat Soap: Monthly Sales Volume 15,000 units 18,000 27,000 36,000 45,000 a. b. Probability 40% 30% 15% 10% 5% Contribution Margin P 75,000 90,000 135,000 180,000 225,000 If Nitz' Company decides to market Duhat Soap, the expected value of the monthly sales volume is 28,200. C. 106,500. 141,000. d. 21,300.
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