Wilhelms Cola Company plans to market a new lime-flavored cola this summer. The decision is whether to package the cola in returnable or in nonreturnable bottles. Currently, the state legislature is considering eliminating nonreturnable bottles. Tybo Wilhelms, president of Wilhelms Cola Company, has discussed the problem with his state representative and established the probability to be .70 that nonreturnable bottles will be eliminated. The following table shows the estimated monthly profits (in thousands of dollars) if the lime cola is bottled in returnable versus nonreturnable bottles. Of course, if the law is passed and the decision is to bottle the cola in nonreturnable bottles, all profits would be from out-of-state sales. Compute the expected profit for both bottling decisions. Which decision do you recommend?

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Law Is Passed ($000), Law Is Not Passed ($000), Alternatlve Returnable bottle Nonreturnable bottle 80 25 40 60