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Solutions for Managerial Accounting, 12th Canadian Edition by Ray H. Garrison
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Complete Solutions Manual for Managerial Accounting 12ce 12th Canadian Edition by Ray H. Garrison, Theresa Libby, Alan Webb. ISBN-13: 3275 Full Chapters Solutions are included Section 1: Overview and Foundation Chapter 1: Managerial Accounting and the Business Environment Chapter 2: Cost Te...

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  • July 18, 2023
  • 943
  • 2022/2023
  • Exam (elaborations)
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Appendix 4A
Problem 4A-1 (20 minutes)
1. Decision tree:




Minor
$(200,000)
(.2)
Modest
A $400,000
(.5)
All Out $1,600,000
(.3)
Campaign
Minor
$80,000
(.2)
Modes6
B $300,000
(.5)
All Out $1,800,000
(.3)


2. Calculate expected profits.
Campaign A:
.2(100) + .5(400) + .3(1,600)
20 + 200 + 480 = $700

Campaign B:
.2(80) + .5(300) + .3(1,800)
16 + 150 + 540 = $706

The marketing manager should choose Campaign B because it has a
slightly higher expected profit.




.
Solutions Manual, Appendix 4A 1

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