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A manufacturing company has just developed new product. Based on experience, a product will be either successful with expected returns of Rs . 1 0
A manufacturing company has just developed new product. Based on experience, a product will be either successful with expected returns of Rs or unsuccessful with expected return of Rs As per the records, success rate of such product is The production & marketing cost are expected to be Rs
The company is considering whether to market this new product or drop it
Before making a decision, a test marketing effort can be conducted at a cost of Rs Based on the experience, testmarketing results have been favourable about of the time. Furthermore, products favourably tested have been successful of the time. However, when the test marketing result has been unfavourable, the product has only been successful of the time. What course of action should the company pursue?
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