The Cruiser Skateboard Company is contemplating $3$ new lines of new skateboard models. The Cost

schedule for the $3$ designs is:

Skateboard Fixed Cost $()$ Variable Cost per Pair $()$

A $50,00075$

B $75,00060$

C $90,00030$

Three probable levels of sales are estimated to be $($a$)2,000$ units, $($b$)4,000$ units and $6,000$ units with

probabilities of $0\mathrm{.}3,0\mathrm{.}45$ and $0\mathrm{.}25$ respectively. The selling price is $400$ per unit.

$($a$)$ On the basis of expected present value, which design should be chosen?