The Miramar Company is going to introduce one of three new products: a Widget, a Hummer, or a Nimnot. The market conditions (favourable, Stable, or unfavourable) will determine the profit or loss the company realizes, as shown In the following payoff table:     State of Nature     Favourable Stable Unfavourable Product   0.2 0.7 0.1     $ $ $ Widget   120,000 70,000 -30,000 Hummer   60,000 40,000 20,000 Nimnot   35,000 30,000 30,000     Required: 1. Develop the opportunity loss table and compute the expected opportunity loss for each product. 2. Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.