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Company ABC is producing and selling one single product and currently is in the process of identifying the Price of this product According to the
Company ABC is producing and selling one single product and currently is in the process of identifying the Price of this product According to the research performed by Company personnel, it is anticipated that if Company sets the price of 10$ per unit, the Company would have the following results: 10$ per unit: Units of Sale (in units) Profit (in USD) Probability (in %) 100 (2.000) 10% 150 4.000 53% 200 7,500 37% If the Company sets price of 155 per unit, there would be following results: 15$ per unit: Units of Sale (in units) Profit (in USD) Probability (in %) 50 (1.000) 15% 100 6,000 50% 120 8,000 35% Determine which sales price would be preferred by the Company management, if it selected the result that Maximized the best possible outcome of profit? 155 105 1255 125
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