Reference no: EM132579249

Question - You are an entrepreneur, and considering whether to open a small or a large shop. Both size of shops may receive either a high or a low demand. From a research you have made, you know that 72% of the shops receive high demand; and 56% of these shops are small. Also, you have found in your research that 92% of the shops which receive low demand are also small. You expect that a large shops a profit of 840 thousand liras per year if it receives a high demand, and 65 thousand liras of profit if the demand is low. If the shop is small, the profit in high and low demand situations are 420 and 97,5 liras respectively. Yearly costs of large and small shops are 250,000 TL and 40,000 TL. What is the expected profit of opening a large shop?

A) Question is incorrect (missing information).

B) 655 thousand liras

C) 539 thousand liras

D) 589 thousand liras

E) 1039 thousand liras