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need help DECISION TREE - Calculation Questions: FOSHARE is Travel Clothing Company. It needs to decide whether to launch a new leather jacket (M) for
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DECISION TREE - Calculation Questions: FOSHARE" is Travel Clothing Company. It needs to decide whether to launch a new leather jacket (M) for Male customers or a new leather jacket (F) for Female customers for the next two years. The production volume and associated cost for each leather jacket are estimated on a yearly basis as shown in the following tables. Jacket (M): Economy Probability Production Initial Cost Fixed Cost per Variable Cost (million Units) (million/U.S Year (million/ dollar) U.S dollar) (U.S dollar) Good 60% 9 2.0 0.6 35 per Unit Bad 40% 7 2.0 0.6 35 Jacket (F): Economy Probability Production (million Units) Initial Cost (million/U.S dollar) per Unit Fixed Cost per Variable Cost Year (million/ U.S dollar) (U.S dollar) 0.7 30 8 2.5 Good Bad 60% 4096 6 2.5 0.7 30 *Note: The selling price of jacket will be 500 (U.S dollar) per Unit Please read the above information and answer the following questions Please read the above information and answer the following questions What is the Expected Value of launching a new leather jacket (M) for Male customers? 8645.8 million (U.S. dollar) 08555.5 million (U.S. dollar) 7622.8 million (U.S. dollar) 9865,4 million (U.S. dollar) 1343.5 million (U.S. dollar) What is the Expected Value of launching a new leather jacket (F) for Female customers? 09865,4 million (U.S. dollar) 7622.8 million (U.S. dollar) 1343.5 million (U.S. dollar) 8555.5 million (U.S. dollar) 6764.1 million (U.S. dollar) According to the decision tree, which one is the best alternative? Normal Economy Leather jacket (F) for Female customers Good Economy Leather jacket (M) for Male customers Bad Economy What is the total cost for producing jacket (M) if the economy is bad? 719.5 million (U.S. dollar) 510.1 million (U.S. dollar) 620.4 million (U.S. dollar) 904.2 million (U.S. dollar) 493.2 million (U.S. dollar) What is the total income for producing Jacket (F) if the economy is good? 8900 million (U.S. dollar) 7000 million (U.S. dollar) 6000 million (U.S. dollar) 6204 million (U.S. dollar) 8000 million (U.S. dollar) Step by Step Solution
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