Use the Following Data to Answer Questions 88-100 -Refer to the Data on Expected Demand for Weston Gadgets,Inc

question 42

Multiple Choice

Use the following data to answer questions 88-100. $$\begin{array}{l} \quad \quad \quad \quad \quad \quad \quad \quad \text { Expected Demand for Weston Gadgets, Inc. }\\\begin{array} { | l | l | l | l | } \hline \text { Decision Alternative } & \text { Low 35\% } & \text { Medium 30\% } & \text { High 35\% } \\\hline \text { Outsource } & \$ 16.00 \text { million } & \$ 28.00 \text { million } & \$ 66.00 \text { million } \\\hline \text { Build capacity } & \$ 4.00 \text { million } & \$ 32.00 \text { million } & \$ 26.00 \text { million } \\\hline \text { Do nothing } & \$ 9.00 \text { million } & \$ 18.00 \text { million } & \$ 66.00 \text { million } \\\hline\end{array}\end{array}$$
-Refer to the data on Expected Demand for Weston Gadgets,Inc.For the various demand scenarios and their associated probabilities,the option to outsource has an expected value of ______.

• A)$37.10 million
• B)$31.65 million
• C)$20.10 million
• D)$17.85 million

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Definitions:

Operating Activities

Activities related directly to the primary, day-to-day operations of a business, including sales, production, and administrative functions.

GAAP

Generally Accepted Accounting Principles, which are standardized guidelines for accounting practices.

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services.

Financing Activities

Transactions and events related to raising capital, repaying investors, issuing dividends, and loans that affect a company's capital structure and equity.