Decision Tree Problem
Jessica has been awarded a contract to produce dresses of her design by a small retail chain. The chain will take delivery of 50 dresses right now. But future releases will depend on actual sales.
The chain has provided a set of estimates of sales for the upcoming year:
|Demand||# of Dresses *||Probability|
* includes the 50 already released.
Jessica has 3 options:
A: make the dresses herself, no fixed costs, profit will be $10.00 per dress.
B: buy equipment and hire part time help; equipment costs will be $5,000, profit per dress will be $15.00.
C: contract out to a sewing shop, up front is a one time cost of $10,000, profit per dress will be $20.00.
Question: which option should Jessica select?
Payout table and Decision Tree are required.
Hint: Decision tree will have 3 major branches and each major branch will have 3 branches.
If the assignment above is what you are looking for, please Order Now and your paper will be written from scratch.
IMPORTANT: We are the best custom essay writing website offering top quality, AUTHENTIC, ORIGINAL cheap custom papers. Our custom research paper writing service is verified and top rated by Business Bureau for providing plagiarism free affordable essays online, affordable research papers online, and affordable term papers online at affordable prices.