Bahouth Ltd$.$ is planning for the next two years of production and debating whether to construct

a large cross$-$dock facility with $40$ trnck bays or a smaller one with $20$ trnck bays. The cost to

build the large facility is $$2$ million and the cost to build the small one is $$1\mathrm{.}2$ million. If they

constrnct a large facility and demand is as high as they hope, then operating costs are $$450,000$

annually. If they constrnct a large facility and demand is low, then operating costs are $$300,000.$

If they constrnct a small facility and demand is low, the operating costs are $$275,000$ but if they

experience high demand, the operating cost of a small facility increases to $$600,000.$ After

having conducted some market research, they feel that the likelihood of high demand is $0\mathrm{.}7$ and

the likelihood of small demand is $0\mathrm{.}3.$