Expected level of revenues for the new product line

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Reference no: EM131962518

The owner of the Petreno Pharmaceutical Company is evaluating the expected annual sales for a new line of facial care products and estimates that there is a 68 percent chance that the product line will be extremely successful, in which case it will generate sales next year of 7.7 million. However, since the new product line has a unique appeal that will require substantial advertising by its manufacturer to gain consumer acceptance, there is a 32 percent chance that revenues for next year will be a modest 1.4 million. What is the expected level of revenues for the new product line? The expected total revenue for the new line of products is $ million (round to two decimal places)

Reference no: EM131962518

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