b) A company expects to sell 1000 units per month of a new product but there is uncertainty as to both the unit selling price and the unit variable cost of the product. The following estimates of selling price , variable costs and their related probabilities have been made: Selling price unit variable cost K' per unit probability K' per unit probability 20 25% 8. 20% 25 40% 10 50% 30 35% 12 30%

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b) A company expects to sell 1000 units per month of a new product but there is uncertainty as
to both the unit selling price and the unit variable cost of the product. The following
estimates of selling price , variable costs and their related probabilities have been made:
Selling price
unit variable cost
K' per unit
probability
K' per unit
probability
20
25%
8
20%
25
40%
10
50%
30
35%
12
30%
There are specific fixed costs of K5000 per month expected for the new product. What is the
expected value of the monthly contribution and the probability of the monthly contribution from the
new product exceeding K 13,000?".
00
Transcribed Image Text:b) A company expects to sell 1000 units per month of a new product but there is uncertainty as to both the unit selling price and the unit variable cost of the product. The following estimates of selling price , variable costs and their related probabilities have been made: Selling price unit variable cost K' per unit probability K' per unit probability 20 25% 8 20% 25 40% 10 50% 30 35% 12 30% There are specific fixed costs of K5000 per month expected for the new product. What is the expected value of the monthly contribution and the probability of the monthly contribution from the new product exceeding K 13,000?". 00
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