Omelette Co is trying to set the sales price for one of its products. Three prices are under consideration, and expected sales volumes and costs are as follows.
Pricing choices:
GH₵4: Best possible - 16,000 units, Most likely - 14,000 units, Worst possible - 10,000 units
GH₵4.30: Best possible - 14,000 units, Most likely - 12,500 units, Worst possible - 8,000 units
GH₵4.40: Best possible - 12,500 units, Most likely - 12,000 units, Worst possible - 6,000 units
Fixed costs are GH₵20,000 and variable costs of sales are GH₵2 per unit. Probabilities assigned to "best possible" 10?