Tony BIs Attempting to Start a Landscaping Business

question 7

Multiple Choice

Tony B.is attempting to start a landscaping business.He estimates that to break-even,he will need about 150 customers.He believes that he will lose approximately $500 per customer for each customer fewer than the 150.At the moment,he believes there is an 80% probability that he will be able to secure between 130 and 170 customers,and that there is a 50/50 chance that demand will be greater than 160 customers.What is the mean or expected number of sales?

• A)130
• B)150
• C)160
• D)170
• E)None of the above

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Definitions:

Product Manufacturing

The process of converting raw materials or components into finished goods that meet a company's specifications and can be offered to the market.

Fiberglass Pipes

Tubular products made from fiberglass, a strong and lightweight material, used in various applications such as plumbing, industrial processes, and infrastructure.

Employee Stock Ownership Plan

A program that gives employees ownership interest in the company through the acquisition of its stocks, often used as a corporate finance strategy.

Restricted Stock Plans

Compensation programs offered by companies to employees, granting them the right to acquire shares at little or no cost, subject to certain restrictions.