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MacDonald Products, Inc., of Clarkson, New York, has the option of ( a ) proceeding immediately with production of a new top - of -

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 units at $ each, with a probability of and a probability of at $.If, however, he uses the value analysis team(option b), the firm expects sales of units at $, with a probability of and a probability of units at $. Value engineering, at a cost of $, is only used in option b. Which option has the highest expected monetary value(EMV)?
Part 2
The EMV for option a is $
54864 and the EMV for option b is $
36360.Therefore, option
a
a
b
has the highest expected monetary value. (Enter your responses as integers.)

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