=+4-34 KKK Uncertainty and expected costs OBJECTIVES 1, 4, 5, APPENDIX 4-2 Bigmart Ltd, an international retail giant, is considering implementing a new business-to-business (B2B) information system for processing purchase orders. The current system costs Bigmart $2500000 per month and $50 per order. Bigmart has two options:

a partially automated B2B system and a fully automated B2B system. The partially automated B2B system will have a fixed cost of

$10000000 per month and a variable cost of $40 per order. The fully automated B2B system has a fixed cost of $20000000 per month and $25 per order.

Based on data from the last two years, Bigmart has determined the following distribution on monthly orders:

Monthly number of orders Probability 350 000 0.15 450 000 0.20 550 000 0.35 650 000 0.20 750 000 0.10 Required 1 Prepare a table showing the cost of each plan for each quantity of monthly orders.