Decision with uncertainty:
Given: The following table of probabilities:
At unit selling price of $200
Probability of Sale
Units
23%
20,000
57%
15,000
20%
12,000
At Unit selling price of $220
Probability of Sale
Units
15%
16,000
45%
13,000
40%
10,000
Required: What product selling price would you recommend if the variable costs are $115 per unit?