Question
The school canteen can sell either halo-halo or mami (hot noodle soup) on any given day. The contribution margin that the canteen could earn from
The school canteen can sell either halo-halo or mami (hot noodle soup) on any given day. The contribution margin that the canteen could earn from halo-halo and mami is affected by the weather, as follows: Item sold CONTRIBUTION MARGIN Hot Weather Cold Weather Halo-halo 15,000.00v 6,000.00v Mami 11,400.00v 12,000.00v a. If probability of hot weather on a given day at this time is 60%, what is the expected payoff for selling halo-halo? b. What is the expected payoff for selling mami if the probability of hot weather on a given day at this time is 60% c. If the probability of hot weather on a given day at this time is 60%, which item(s) should the company sell?
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