Question 30

Products, inc, of Clarkson, New York, has the opton of (a) proceeding immediately with production of a newe top-ot-the-ine stereo TV that has just completed prolotype festing of (b) having the value analysis team complete a study. 65,000 at $530. it, however, he uses the valse analysis team (option b), the fim expects soles of 90,000 units at $740, with a probability of 0.69 and a 0.31 probabily of 65,050 unts at $740 Value engineering, at a cost of $85,000, is only used in option b. Which option has the highest expected monelary value (FMN)? The EMV for eption a is: and the EMV for cotion b is 1 Therefore, opton bas the highest expected monelary vibe. (Entor your responses as integens)