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 $235,000 if the machinery is sold at $300,000. While setting the price at $230,000 increases the chance of a sale it reduces the revenue when it does sell. The higher price of $390,000 increases the revenue but significantly decreases the chance of making a sale. A selling price of $300,000 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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