Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

# MacDonald Products, lnc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-ofthe-line stereo TV that...

Got the dollar values wrong, i think it's option b that has the highest, is this true?

17. MacDonald Products, lnc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-of—the-line stereo TV that hasjust 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 90,000 units at \$620 each, with a probability of 0.24 and a 0.76 probability of 60,000 at \$620. If, however. he uses the valueanalysis team (option b), the ﬁrm expects sales of 75,000 units at \$750, with a probability of 0.75 and a 0.25 probability of 70,000 units at \$750. Value engineering, at a cost of\$115,000, is only used in option b. Which option has the highest expected monetary value (EMV)? The EW for option a is \$ and the EMV for option b is \$ . Therefore, option (1) — has the highest expected monetary value. (Enter your responses as integers.) (1)OaOb