Question: I figured out the first part, the answer is B. I need help with the question below When using the existing material, the expected monetary

I figured out the first part, the answer is B. II figured out the first part, the answer is B. I need help with the question below

When using the existing material, the expected monetary value(EMV)= $________ enter your response here

(enter your response as a whole number).

then new monetary emv

please show your work.

Ling Li of Li Windows, Inc. is considering making a change in the material the firm uses for panes in its residential window line. The new material has a slight mirror attribute that assists in reflecting ultraviolet light and restricts the transmission of heat. The new material will raise the cost of a standard window by $3.76. The current window is in the mature stage of the life cycle, and, with no modifications, Li has estimated that sales of the window line will be 260,000 units per year with a probability of 0.4 or 200,000 units per with a probability of 0.6. The standard net profit of a window unit is $55. With the new glass material, the selling price per unit can be increased by $6 (but with the added cost per unit, the net profit will be (($55 +56) - $3.76) = $57.24). However, Li estimates that the demand for the newly designed window will bo 230,000 units with a probability of 0.7, and there will be a 0.3 probability of sales 170,000 units. Which option will allow the company to maximize its expected monetary value (EMV)? Choose the correct decision tree that corresponds with the decision made by Ling Li of LI Windows, Inc. D A High dealand VE High demand - No change No change 1 w demand Low duman High demand High demand New material New material Low deinand La demand C No change D Ne daten ... Hich demand

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