Question 4 (10 marks) A company want to decide on three potential selling prices to charge for a new product they intend to launch. The following payoff table has been obtained showing the three selling prices, the three variable costs possible and the resultant contribution (in italics). Selling Price Variable Cost N$425 N$500 N$600 N$170 255 000 240 900 180 600 N$210 215 000 211 700 163 800 N$260 165 000 175 200 142 800 Requirement Mark Subtotal Total 4.1 Which price should be chosen if the maximax criterion is used? 2 2 4.2 Which price should be chosen if the maximin criterion is used? 2 4 4.3 Which price should be chosen if the minimax regret criterion is used? 6 10 Note: Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these. Total 1