If Humber chooses the heavy production plan, they will make a price reduction offer to Brampton (a large supermarket chain) on the condition that Brampton purchases all units produced under the heavy plan.

There is a 30% chance that Brampton will accept this offer. If Brampton accepts, Humber is guaranteed to sell all the 43,000 units it produces under the heavy production plan at $4.05 each. Although Humber will sellRexfor $0.55 less at this price, Humber values the guarantee and sees the relationship as an opportunity for expansion in the long run. If Bramptinos declines the offer, the loaves will still sell based on current demand conditions (low, medium, or high).

1. What is the expected gross profit of this decision?

Round EMV to the nearest cent.

EMV = $