The correct answer is: 0.44.
|
Prob |
No of units
sold |
Varble
costs |
Cont per unit |
Cont |
Fixed costs |
Profit/
(loss) |
|
|
|
£ |
£ |
£ |
£ |
£ |
|
0.2×0.1=0.02 |
20,000 |
12 |
8 |
160,000 |
175,000 |
(15,000) |
|
0.2×0.6
=0.12 |
20,000 |
14 |
6 |
120,000 |
175,000 |
(55,000) |
|
0.2×0.3
=0.06 |
20,000 |
16 |
4 |
80,000 |
175,000 |
(95,000) |
|
0.5×0.1
=0.05 |
30,000 |
12 |
8 |
240,000 |
175,000 |
65,000 |
|
0.5×0.6
=0.3 |
30,000 |
14 |
6 |
180,000 |
175,000 |
5,000 |
|
0.5×0.3
=0.15 |
30,000 |
16 |
4 |
120,000 |
175,000 |
(55,000) |
|
0.3×0.1=0.03 |
40,000 |
12 |
8 |
320,000 |
175,000 |
145,000 |
|
0.3×0.6
=0.18 |
40,000 |
14 |
6 |
240,000 |
175,000 |
65,000 |
|
0.3×0.3
=0.09 |
40,000 |
16 |
4 |
160,000 |
175,000 |
(15,000) |
|
Probability of making a loss |
= 0.02 + 0.12 + 0.06 + 0.15 + 0.09 |
|
|
= 0.44 | |
