A consumer products company found that 48% of successful products also received favorable results from test market research, whereas 12% had unfavorable results but nevertheless were successful. They also found that 28% of unsuccessful products and unfavorable research results, whereas 12% of them had favorable research results. That is P(successful product and favorable test market)=0.48, P(successful product and unfavorable test market) = 0.12, P(unsuccessful product and favorable test market) = 0.12, and P(unsuccessful product and unfavorable test market)=0.28. First find the marginal probability of market results and then calculate the probabilities of successful and unsuccessful products given known test market results.

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.