1. Belatrix Engineering makes new uber smartwatches. The retail cost of the smartwatch is

$175.00 each. There are three designs for the smartwatch which has an forecasted sales of 800,000 units throughout the products life. Design A has a design cost of $500,000; Design B has a design cost of $1,400,000; Design C has a design cost of $375,000. The following table shows the Yield rate for each design.

	Probability of Yielding a Good Smart Watch during Manufacturing
Design Model	Yield 42 per 100	Yield 48 per 100	Manufacturing cost per watch for all watches in the design model
A	0.81	0.19	$54
B	0.18	0.82	$53
C	0.63	0.37	$59

1. Draw a decision tree which shows Root, Branches and nodes for decisions above (7 marks)
2. Solve the EMV for each design model. (10 marks)
3. Which design should the company choose? (3 mark)