Calculation of expected value from sales projection

Reference no: EM13824429

Problem-

Depending upon the state of the economy, Ables Manufacturing Corp. expects to sell the following number of prefabricated buildings. The probability of each state is indicated. What is the expected value of the total sales projection?

Outcome	Probability	Units	Price
Bad	0.15	75	$25
Normal	0.60	150	$35
Great	0.25	300	$45

a). $5,625

b). $4,540

c). $12,800

d). None of these

Additional Requirement-

The problem belongs to Accounting and it discusses about calculation of expected value from sales projection.

Reference no: EM13824429

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