Read the following memo from Ben Nuna and answers questions 1 to 3 in a suitable format.

From: Ben Numa, Finance Manager

To: Finance Officer

Subject : Marketing campaign and CushyFit app

The SMT is planning a major 6-month promotional campaign to promote CushyFit, CushyStyle and our existing shoe ranges. There are three potential campaigns being considered and we need to decide which to choose. Each campaign is expected to have a different impact on the additional profit that will be generated depending on market reaction (Table 1 attached). I have calculated the expected value, standard deviation and coefficient of variation for each campaign (Table 2 attached). We have been offered perfect information about this decision for a fee of K$15,000 and so I have also calculated the value of perfect information (Table 3 attached).

Sophia Grigg, Managing Director, has looked at Tables 1, 2 and 3 and has sent a list of queries. To address these queries please prepare a briefing paper for Sophia which explains :

3. The CushyFit app will be launched on 1 January 2022 and will be available to download on multiple platforms. The app will allow the downloader after subscribing and signing up to a monthly fee, to access every virtual fitness class available in real time from their own home or a place of their choosing.The monthly subscription fee will be the same regardless of the platform from which the app is downloaded I have prepared a table of information (Table 4 attached) about the costs associated with the CushyFit app and the virtual fitness classes. Sophia is considering how much to charge for a 1- month subscription to the CushyFit app and has asked for information about the costs associated with this. Please include in your briefing paper for Sophia an explanation of: How to determine the cost of providing a 1-month subscription to the CushyFit app and the difficulties associated with doing this. [56 marks]

Please give more explanation and opinion based on marks required, will give you an upvote!