MacDonald Products, Inc., of Clarkson, New York, has the option of

(a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or

(b) having the value analysis team complete a study.

If Tyrone Martin, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 80,000 units at $530 each, with a probability of 0.29 and a 0.71 probability of 70,000 at $530. If, however, he uses the value analysis team (option b), the firm expects sales of 90,000 units at $730,with a probability of 0.76 and a 0.24 probability of 70,000 units at $730.

Value engineering, at a cost of $95,000,is only used in option b. Which option has the highest expected monetary value (EMV)?

The EMV for option a is$____ your response here and the EMV for option b is$____ your response here.

Therefore, what option is the best selection

has the highest expected monetary value.

(Enter your responses as Integers.)