John Smith is the production manager of Elmo$$s Glue Company. Because of limited capacity, the company can produce only one of two possible products. The two products are:

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A space$-$age bonding formula that has a $15\%$ probability of making a profit of $$1,000,000$ for the company and an $85\%$ chance of generating $$200,000$ in profit.

A reformulated household glue that has a $100\%$ chance of making a profit of $$310,000.$

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John gets a bonus of $20\%$ of the profit from his department. John has the responsibility to choose between the two products. Assume John is more risk$-$averse than the top management of Elmo$$s Glue Company.

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