1. Cindy estimates that apples of acceptable quality result in a profit of $0.30 per apple. She also knows that low-quality apples can be sold to juice companies at a profit of $0.04. Finally, she estimates that the cost to Blanda of selling a low-quality apple to the grocery store as an acceptable-quality apple is $1.05 for each low-quality apple. Use this information to construct a payoff matrix as in Exhibit 11-21.

2. Using Cindy's knowledge about the payoff of each outcome, which threshold should the team choose?