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A company is working on a new product. The product's development through production is expected to cost the company $400,000. The product is going to
A company is working on a new product. The product's development through production is expected to cost the company $400,000. The product is going to sell for $1000 and its total manufacturing cost including all overhead is budgeted at $600. Marketing is predicting that the probability of selling 1000 pieces in the first year to be 65% and the probability of selling 1000 pieces in the second year to be 75%. What is the expected profit in the second year?
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$200,000
$360,000
$400,000
$300,000
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