A previous analysis of historical records found that the mean value of orders for promotional goods is 28 dollars, with the company earning a gross profit of 24% on each order. Calculate the expected value of the profit contribution next year. Expected value

The number of goods in an order is missing from the question, So, the calculation will be done on a per order basis.

Answer:

The expected value of the profit contribution per order next year is $6.72.

Step-by-step explanation:

The mean value of orders for the promotional goods is $28.

The gross profit on each order is 24% = 0.24

Then the expected value of the profit contribution per order next year is,

0.24 * 28 = $6.72

Therefore, the expected value of the profit contribution per order next year is $6.72.