Compute Expected Values-CVP (L.O.3): After further market analysis, Granduke Company (exercise 24-23) has obtained the following assessment of the demand levels and their probabilities:24-24. Compute Expected Values-CVP (L.O.3) After further market analysis, Granduke Company (exercise 24-23) has obtained the following assessment of the demand levels and their probabilities:

The cost and revenue data are the same as in the previous exercise.

Required: What is the expected value of Granduke Company's new device if they manufacture the product?

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Demand in Thousands of Units Probability 40 50 60 90 88888 .07 .20 .35 70 .18 80 .12 .08 2008