Step 1 :Calculate the Expected Monetary Value (EMV) for option a: \(EMV_a = (120,000 \text{ units} \times $500/\text{unit} \times 0.56) + (70,000 \text{ units} \times $500/\text{unit} \times 0.44)\)
Step 2 :Calculate the Expected Monetary Value (EMV) for option b: \(EMV_b = [(85,000 \text{ units} \times $730/\text{unit} \times 0.65) + (70,000 \text{ units} \times $730/\text{unit} \times 0.35)] - $115,000\)
Step 3 :Compare the EMVs for options a and b to determine which option has the highest EMV: \(\boxed{\text{Option with highest EMV}}\)