A firm is contemplating the channel of distribution for a newly launched product.Since there is strong demand for the product,its expected profit of $500,000 are unaffected by the channel of distribution.If the firm opts to sell via a distributor,the probability of success is 2/5 and the cost incurred will be $10,000.If the firm opts for direct marketing,the probability of success is 3/5 and the cost incurred will be $20,000.Which method should the firm pursue first?

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The Answer of A firm is contemplating the channel of distribution for a newly launched product.Since there is strong demand for the product,its expected profit of $500,000 are unaffected by the channel of distribution.If the firm opts to sell via a distributor,the probability of success is 2/5 and the cost incurred will be $10,000.If the firm opts for direct marketing,the probability of success is 3/5 and the cost incurred will be $20,000.Which method should the firm pursue first?

A Firm Is Contemplating the Channel of Distribution for a Newly