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Tremblay Products, Inc., of Quebec City, has the option of ( a ) proceeding immediately with production of a new top - of - the

Tremblay Products, Inc., of Quebec City, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 110,000 units at $540 each, with a probability of 0.23 and a 0.77 probability of 80,000 at $540. If, however, he uses the value analysis team (option b), the firm expects sales of 85,000 units at $720, with a probability of 0.65 and a 0.35 probability of 65,000 units at $720 Value analysis, at a cost of $85,000, is only used in option b Which option has the highest expected monetary value (EMV)?
The EMV for option a is $ and the EMV for option b is $ Therefore, option monetary value (Enter your responses as integers.)

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