Macdonald products, inc., of clarkson, new york, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo tv that has just completed prototype testing or (b) having the value analysis team complete a study. if ed lusk, vp for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 80 comma 00080,000 units at $520520 each, with a probability of 0.590.59 and a 0.410.41 probability of 75 comma 00075,000 at $520520. if, however, he uses the value analysis team (option b), the firm expects sales of 85 comma 00085,000 units at $700700, with a probability of 0.660.66 and a 0.340.34 probability of 65 comma 00065,000 units at $700700. value engineering, at a cost of $120 comma 000120,000, is only used in option b. which option has the highest expected monetary value (emv)? the emv for option a is $nothing and the emv for option b is $nothing. therefore, option ▼ a b has the highest expected monetary value. (enter your responses as integers.)

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event.inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded.required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)