1.Leisure Supplies produces sinks and ranges for travel and recreational vehicles.The unit price on its double sink is $28 and the unit cost is $20.The fixed cost in producing the double sink is $16,000.Mean sales for the double sink have been 35,000 units, and the standard deviation have been estimated to be 8,000 units.

a.Determine the expected monetary value for these sinks.

b.If the standard deviation were 16,000 instead of 8,000 units, what effect would this have on the expected monetary value?

c.Also, this firm is considering the possibility of using a new process for producing sinks.This new process would increase the fixed costs by $16,000.However, this new process will improve the quality of the sink.It will cost only $19 to produce the sinks using this new process.What do you recommend?

d.Moreover, Leisure Supplies is considering the possibility of increasing the purchase price to $32 using the old process.It is expected that this would lower mean sales to 26,000 units.Should they increase the selling price?