Question: The highest expected profit is $ 2 3 5 , 0 0 0 if the machinery is sold at $ 3 0 0 , 0
The highest expected profit is $ if the machinery is sold at $ While setting the price at $ increases the chance of a sale it reduces the revenue when it does sell. The higher price of $ increases the revenue but significantly decreases the chance of making a sale. A selling price of $ is the optimal balance between the probability of a sale and the revenue from that sale, leading to the highest expected profit when considering the option of keeping the machine in inventory.
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