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

Answer: The mean value of orders for promotional goods is given as $28. If the company earns a gross profit of 24% on each order, we can calculate the expected gross profit contribution per order by taking 24% of the mean order value.

Here's the calculation for the expected profit contribution per order:

Expected profit contribution per order = Mean order value × Gross profit percentage = $28 × 24% = $28 × 0.24 = $6.72

So, the expected profit contribution per order is $6.72.

If you want to calculate the expected total profit contribution for next year, you would need to know the expected number of orders for the next year. If you had that figure, you would simply multiply the expected profit contribution per order ($6.72) by the expected number of orders for the year.

If the expected number of orders is not provided, all you can state is the expected profit contribution per order, which is $6.72.