The XYZ Company solicited sales potentials and the probabilities of their occurrence from its salespersons.The data they received can be summarized as follows: Based on the data, the expected level of sales for the upcoming period is

Question

The XYZ Company solicited sales potentials and the probabilities of their occurrence from its salespersons.The data they received can be summarized as follows:  Based on the data, the expected level of sales for the upcoming period is

Quizplus · Accepted Answer

To find the expected level of sales, we need to multiply each sales potential by its probability and add up the results.

(150,000 x 0.25) + (175,000 x 0.35) + (200,000 x 0.30) + (225,000 x 0.10) = 37,500 + 61,250 + 60,000 + 22,500 = 181,250

Therefore, the expected level of sales for the upcoming period is $187,500 (closest to answer choice B).

The XYZ Company Solicited Sales Potentials and the Probabilities of Their