A previous analysis of historical records found that the mean value of orders for promotional goods is 28 dollars, with the company earning a gross profit of 24% on each order. Calculate the expected value of the profit contribution next year. Expected value

Respuesta :

The number of goods in an order is missing from the question, So, the calculation will be done on a per order basis.

Answer:

The expected value of the profit contribution per order next year is $6.72.

Step-by-step explanation:

The mean value of orders for the promotional goods is $28.

The gross profit on each order is 24% = 0.24

Then the expected value of the profit contribution per order next year is,

0.24 × 28 = $6.72

Therefore, the expected value of the profit contribution per order next year is $6.72.