Reference no: EM132579245

Question - You are an entrepreneur, and considering whether to open a small or a large shop. Both size of shops may receive either a high or a low demand. From a research you have made, you know that 71% of the shops receive high demand; and 59% of these shops are small. Also, you have found in your research that 85% of the shops which receive low demand are also small. You expect that a large shops a profit of 927 thousand liras per year if it receives a high demand, and 41 thousand liras of profit if the demand is low. If the shop is small, the profit in high and low demand situations are 463,5 and 61,5 liras respectively. Yearly costs of large and small shops are 250,000 TL and 40,000 TL. What is the expected profit of opening a small shop?

A) Question is incorrect (missing information).

B) 263 thousand liras

C) 275 thousand liras

D) 275 thousand liras

E) 454 thousand liras