The company sells the dolls at $5.20 each. The cost of each doll is $3.20 Serito’s expected incremental profit, if the advertising campaign is adopted, is
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The sales manager of Serito Doll Company has suggested that an expanded advertising campaign costing $40,000 would increase the sales and profits of the company. He has developed the following probability distribution for the effect of the advertising campaign on company sales:
A. $6,500 B. $46,500 C. $53,000 D. $93,000 |