A company is considering three alternative e-commerce providers to sell a new product online. The cost...

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A company is considering three alternative e-commerce providers to sell a new product online. The cost structures (cost variable based on units sold plus a fixed retainer) for the three providers are shown as follows. The selling price is unaffected by the choice of provider. Dedicated e-commerce provider: $0.60x + $20,000 Semi-dedicated e-commerce provider: $0.40x + $50,000 Shared e-commerce provider: $0.20x + $120,000 The demand for units of the new product is described by the following probability distribution. Probability 0.4 0.3 0.2 0.1 Demand 200,000 300,000 400,000 500,000 Ignoring the time value of money, what is the expected cost of using the shared e-commerce provider? A company is considering three alternative e-commerce providers to sell a new product online. The cost structures (cost variable based on units sold plus a fixed retainer) for the three providers are shown as follows. The selling price is unaffected by the choice of provider. Dedicated e-commerce provider: $0.60x + $20,000 Semi-dedicated e-commerce provider: $0.40x + $50,000 Shared e-commerce provider: $0.20x + $120,000 The demand for units of the new product is described by the following probability distribution. Probability 0.4 0.3 0.2 0.1 Demand 200,000 300,000 400,000 500,000 Ignoring the time value of money, what is the expected cost of using the shared e-commerce provider?

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The cost structure for the shared ecommerce provider is given as 020x 120000 Well cal... View the full answer