Question: 3 O 10 IS CUID This Question: 12 pts Question Help MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately

3 O 10 IS CUID This Question: 12 pts Question Help 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 (optiona), the firm can expect sales to be 85,000 units at $590 each with a probability of 0.41 and a 0.50 probability of 65,000 at 5590., however, he uses the value analysis team (option b), the firm expects sales of 90,000 units at $740, with a probability of 0.74 and a 0.26 probability of 70,000 units at $740. Value engineering, at a cost of $110,000, is only used in option b. Which option has the highest expected monetary value (EMV)? The EMV for option a is and the EMV for option bis S. Therefore, option has the highest expected monetary value. (Enter your responses as integers.) Cente Enter your answer in each of the answer boxes This IMGMT-32520 is based on Hezer RenderMursos Operations Management 130 Pearson w 5

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