A businessman bought a car dealership that is incurring a loss of $500,000 a year. He decided to strategize in order to turn the business around. In addition to the $500,000 annual loss, his fixed cost for running the dealership on a monthly basis is $5,000. The number of cars sold per week and their probabilities mimic the outcomes of three coins being flipped. The number of cars sold in a week was observed to be the same as the number of tails that appear when three coins are flipped. See the distribution:
Number of Tails: 0 1 2 3
Probability: 1/8 3/8 3/8 1/8
Given that there are 52 weeks in a year, what is the expected revenue per car (rounded to the nearest dollar) that has to be made in order to break even in the first year?
A$4,308
B$7,179
C$5,385
D$10,769
E$3,590
Number of Tails: 0 1 2 3
Probability: 1/8 3/8 3/8 1/8
Given that there are 52 weeks in a year, what is the expected revenue per car (rounded to the nearest dollar) that has to be made in order to break even in the first year?
A$4,308
B$7,179
C$5,385
D$10,769
E$3,590