Question: JDI, Inc. is trying to decide whether to make a high-tech component. If they design and produce it themselves, it will result in a unit

JDI, Inc. is trying to decide whether to make a

JDI, Inc. is trying to decide whether to make a high-tech component. If they design and produce it themselves, it will result in a unit cost of $0.75 per unit. The design investment would be $50,000. However, there is a 70% chance that they can produce the part themselves. If they decide to outsource the work, there will be a fixed cost of $100,000. JDI will need 100,000 of these parts. The Expected Monetary Value (EMV) of making the component is: A. $140,000 B. $180,000 C. $150,000 D. $175,000 E. $125,000

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