Use the data presented in 12.13. The probability of the monthly contribution from the new product exceeding £13 500 is:

(a) 24.5%

(b) 30.5%

(c) 63.0%

(d) 92.5%

 12.13:

A company expects to sell 1000 units per month of a new product but there is uncertainty as to both the unit selling price and the unit variable cost of the product. The following estimates of selling price, variable costs and their related probabilities have been made:

There are specific fixed costs of £5000 per month expected for the new product.

Transcribed Image Text:

Selling Price per unit Probability per unit Unit variance cost Probability 20 25% 8 20% 25 40% 10 50% 30 35% 12 30%