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 $90$ comma $000$ units at $$$$600$each$,$ with a probability of $0\mathrm{.}32$ and a $0\mathrm{.}68$ probability of $70$ comma $000$ at $$$$600.$If$,$ however, he uses the value analysis team$($option b$),$ the firm expects sales of $90$ comma $000$ units at $$$$700,$ with a probability of $0\mathrm{.}78$ and a $0\mathrm{.}22$ probability of $70$ comma $000$ units at $$$$700.$ Value$$ engineering, at a cost of $$$$100$ comma $000,$ is only used in option b$.$ Which option has the highest expected monetary value$($EMV$)?$

Part $2$

The EMV for option a is $$$

$$

enter your response here and the EMV for option b is $$$

$$

enter your response here. $$Therefore$,$ option

$$

has the highest expected monetary value. $($Enter your responses as integers$.)$

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 $90,000$ units at $$600$ each, with a probability of $0\mathrm{.}32$ and a $0\mathrm{.}68$ probabil of $70,000$ at $$600.$ If$,$ however, he uses the value analysis team $($option b$),$ the firm expects sales of $90,000$ units at $$700,$ with a probability of $0\mathrm{.}78$ and a $0\mathrm{.}22$ probability of $70,000$ units at $$700.$ Value engineering, at a cost of $$100,000,$ is only used in option b$.$ Which option has the highest expected monetary value $($EMV$)?$