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What the expected contribution of the new product is

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Problem 1: The Motion Company has decided to introduce a new product. The company estimates that there is a 30 percent probability that the product will contribute P700,000 to profits, a 30 percent probability that it will contribute P200,000, and a 40 percent probability that the contribution will be a negative P400,000. The expected contribution of the new product is

a. P500,000

c. P166,667

b. P110,000

d. P380,000

Reference no: EM132785522

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