Melissa Rossi,Product Manager at National Consumers,Inc

question 20

Multiple Choice

Melissa Rossi,Product Manager at National Consumers,Inc.(NCI) ,is evaluating alternatives for introducing a new package for toothpaste.She has identified four alternative markets,and has constructed the following table which shows NCI's rewards (in $1,000,000's) for various levels of acceptance by the markets and their probabilities: The EMV of introducing the new package in the "Northeast only" market is ___.

• A)$50,000
• B)$70,000
• C)$90,000
• D)$260,000
• E)$300,000

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Definitions:

Pre-tax Profit

The income that a company has earned before any taxes have been deducted from this amount, also known as earnings before tax.

Cost of Goods Sold

represents the direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.

Other Revenue

Income derived from activities not central to a business's primary operations.

Consolidated Income Statement

A financial document that summarizes the combined income and expenses of a parent company and its subsidiaries.