Question
The Alliance Corp. expects to sell the following number of units of copper cables at the prices indicated, under three different scenarios in the economy.
The Alliance Corp. expects to sell the following number of units of copper cables at the prices indicated, under three different scenarios in the economy. The probability of each outcome is indicated.
Outcome Probability Units Price
A 0.60 220 $19
B 0.20 360 $34
C 0.20 490 $44
What is the expected value of the total sales projection?
Sales for Ross Pro's Sports Equipment are expected to be 41,000 units for the coming month. The company likes to maintain 10 percent of unit sales for each month in ending inventory. Beginning inventory is 9,000 units.
How many units should the firm produce for the coming month?
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