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Hayden Ross has four booth rental options at the county fair where he plans to sell his new product for $37.50 per unit with
Hayden Ross has four booth rental options at the county fair where he plans to sell his new product for $37.50 per unit with a cost of $12.50. The booth rental options are shown below. . . Option 1: $1,000 fixed fee Option 2: $750 fixed fee + 5% of all revenues generated at the fair Option 3: $20% of all revenues generated at the fair Option 4: $200 fixed fee + 16% of all revenues generated at the fair Assuming there is a 40% probability that 70 units will be sold and a 60% probability that 40 units will be sold, which option maximizes income? AO Option 1 BO Option 2 CO Option 3 DO Option 4
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