Suppose there are two options to replace a broken yet critical machine. One is to buy a new CNC machine that has a fixed cost of $$400,000$ and a variable cost of $$4.$ If Marketing has determined low demand $=50,000$ units with probability $60\%$ and high demand of $150,000$ units with probability $40\%,$ what is the expected cost of this option?

Question $6$Select one:

a$.$

$$600,000$

b$.$

$$1,200,000$

c$.$

$$760,000$

d$.$

None of these answers is even close

e$.$

$$360,000$