1. ABC Co. is deciding which of the 2 competing product lines it will pursue. Best effort study revealed these profit projections for 2020 operations?

Probability product X- Profit product Y-profit

20% 3,500,000 1,500,000

70% 3,000,000 4,000,000

10% 6,000,000 8,000,000

If ABC Co made the right decision, how much is the expected profit for 2020?

2.ABC Distribution Co. decided to increase its daily purchases of a consumable product by 100 units. each unit costs 200 and sells for 250 through regular stores. Any product not sold through regular stores are sold through ABC Distribution Co.`s thrift store for 180. A thorough study revealed the following probabilities of selling the additional units of consumable products to the regular stores:

Additional sales chance

60 units 60%

100 units 40%

How much is the expected incremental profit (loss) per day if ABC Distribution Co. decides to buy 100 additional units per day of the consumable product?