Question $2$

Petal Providers Corporation opens and operates $$mega$$ floral stores in the U$.$S$.$ The idea behind the super store concept is to model the U$.$S$.$ floral industry after its European counterparts whose flower markets generally have larger selections at lower prices. Revenues were $$1$ million with net profit of $$50,000$ last year when the first $$mega$$ Petal Providers floral outlet was opened. If the economy grows rapidly next year, Petal Providers expects its sales to growth by $50$ percent. However, if the economy exhibits average growth, Petal Providers expects a sales growth of $30$ percent. For a slow economic growth scenario, sales are expected to grow next year at a $10$ percent rate. Management estimates the probability of each scenario occurring to be: rapid growth $(\mathrm{.}30)$; average growth $(\mathrm{.}50),$ and slow growth $(\mathrm{.}20).$ Petal Providers net profit margins are also expected to vary with the level of economic activity next year. If slow grow occurs, the net profit margin is expected to be $5$ percent. Net profit margins of $7$ percent and $10$ percent are expected for average and rapid growth scenarios, respectively.

Estimate the dollar amount of sales expected next year under each scenario, as well as the expected value sales amount.

Enter answers in the box below as follows $($do not include $$.$ DO include commas; no decimal. Your four answers should be entered in this format: $1,000,000,2,000,000,3,000,000,4,000,000)$:

Answer $1$: Sales with rapid growth

Answer $2$: Sales with average growth

Answer $3$: Sales with slow growth

Answer $4$: Expected Sales based on Expected Value Calculated in previous question