Mr. Jerry Jones, the owner of a small bakery store, has designed a special cake for the forthcoming holidays. The production has to be in multiples of 10. He is very conservative decision maker for fearing if more ordered, he may not be able to sell all of them. You need to develop a spread sheet in excel for your decision making. Based on the past records, the following information is available:

Price/per	$20	Cost per	$12	Salvage/per	$2
Demand/units	20	30	40	50
Probability	0.15	0.20	0.40	0.25

You may develop your solution in the following table:

decision alternatives		Demand:
		20	30	40	50	EMV
20	Costs
	Sales
	Profit
	salvage
	payoff, or ex. Profit
30	Costs
	Sales
	Profit
	salvage
	payoff, or ex. Profit
40	Costs
	Sales
	Profit
	salvage
	payoff, or ex. Profit
50	Costs
	Sales
	Profit
	salvage
	payoff, or ex. Profit

	a.	expected value with perfect information (evwpi) is $300
	b.	best expected monetary value (emv) is (in units) $230
	c.	expected value of perfect information EOL (evpi) is $70
	d.	order under maximax approach is $40
	e.	order minimax approach is 40
	f.	his decision should be 40