A business wants to decide whether to launch a new product. If the product is launched there are two elements of uncertainty: 0.70 probability that sales that sales will be 8000 units per month and 0.30 that sales will be 5000 units per month.

If sales are 8000 units per month, there is a 0.5 probability that the contribution per unit will be K2 and a 05 probability that it will be negative -K1. With sales of 5000 units there is a 0.6 probability that the contribution per unit will be K3 and a 04 probability that it will be K3 and a 0.4 probability that it will be K1.

Advise management using decision tree analysis.