UW Toys has developed a brand new producta Professor Hillier Action Figure (PHAF). They are now deciding how to market the doll. One option is to immediately ramp up production and launch an ad campaign throughout the state of Washington. This option would cost $80,000. Based on past experience, new action figures either take off and do well, or fail miserably. Hence, they predict one of two possible outcomes total sales of 30,000 units or total sales of only 2000 units. The net profit per unit sold is $5. Another option is to first test market the product in Yakima before deciding whether to sell statewide. The test market would require less capital for the production run, and a much smaller ad campaign. Again, they predict one of two possible outcomes for Yakima. The product will either do well (sell 400 units) or do poorly (sell 50 units). The cost for this option is estimated to be $4000. The net profit per unit sold is $5 for the test market as well. Once the test market is complete, University Toys would then use these results to help decide whether to market the toy statewide. University Toys has test marketed similar