Case 1: Joint Probabilities Mr.X is planning to open a new salon. Annual revenue will depend on how successful the marketing campaign is, and the potential outcomes are as follows: Marketing Campaign High success 10% Revenue Moderate success 70% Low success 20% Costs are difficult to predict as the price of hair products and the labor market are volatile. The best estimates for the average costs are as follows: Materials: Percentage of revenue 5 P 40% 10 50% Labor: 15 10% Percentage of revenue P 40 20% 45 50 50% 30% The fixed overhead of the salon is expected to be P10,000 per month.