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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.100000 or unsuccessful with expected return of Rs,50000. As per the records, success rate of such product is 50%. The production & marketing cost are expected to be Rs.20000.
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.10000. Based on the experience, test-marketing results have been favourable about 70% of the time. Furthermore, products favourably tested have been successful 80% of the time. However, when the test marketing result has been unfavourable, the product has only been successful 30% of the time. What course of action should the company pursue?
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