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13. The production analyst of gas company is faced with deciding whether to purchase a patent to develop a new product or not. If the company purchases the patent, it should develop the product. The selling price of the patent is 75,000Php. There are 2 ways of developing the product: electronic and manual system. It costs 60,000Php to use the former, and 40,000 to use the latter. The probability of success in the electronic system is 65% and that in the manual system is 75%. If the product is successfully developed, it will give an income of 800,000Php. What system of development is the best to use if the company purchases the patent?

13. The production analyst of gas company is faced with deciding whether to purchase a patent to develop a new product or not. If the company purchases the patent, it should develop the product. The selling price of the patent is 75,000Php. There are 2 ways of developing the product: electronic and manual system. It costs 60,000Php to use the former, and 40,000 to use the latter. The probability of success in the electronic system is 65% and that in the manual system is 75%. If the product is successfully developed, it will give an income of 800,000Php. What system of development is the best to use if the company purchases the patent?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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13. The production analyst of gas company is faced with deciding whether to purchase a patent to
develop a new product or not. If the company purchases the patent, it should develop the
product. The selling price of the patent is 75,000Php. There are 2 ways of developing the product:
electronic and manual system. It costs 60,000Php to use the former, and 40,000 to use the latter.
The probability of success in the electronic system is 65% and that in the manual system is 75%.
If the product is successfully developed, it will give an income of 800,000Php. What system of
development is the best to use if the company purchases the patent?

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