Precision Equipment, Inc., has won a government contract to supply four identical items of a high-precision part that is used in the fuel throttle-valve of an orbital module. The factory has three different machines capable of producing them. Each machine can produced at most 5 items. They differ in terms of setup cost, variable production cost, and the chance that each item will meet the high-quality standards: Machine Setup cost Cost/item Probability of meeting standards A 100 20 0.50 B 300 40 0.80 C 500 60 0.90 After the items are produced, they are sent to the engine assembly plant where they are tested. The items that meet the standard are kept and the ones that do not meet the standards are discarded. Assume that the company will first decide how many items to produce using Machine A. After these items are tested, then the company will then proceed to decide how many items to produce using Machine B. After these are sent and tested, then the company will proceed to decide how many items to produce using Machine C. At the end of the process if fewer than four items are good, the manufacturer has to pay a penalty