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River Lakes residents have beautiful memories of ice skating at the local park. An artist captured the experience in a drawing and hopes to reproduce
River Lakes residents have beautiful memories of ice skating at the local park. An artist captured the experience in a drawing and hopes to reproduce it and sell the framed prints to current and former residents. The artist believes that if the market is good he could sell 400 copies of the fancy version for $ 125 each. If the market is not good, it would only sell 300 copies for $ 90 each. However, if he makes a deluxe version, the artist considers that if the market were good he could sell 500 copies of the deluxe version for$ 100 each. If the market is not good it could sell 400 copies for S 70 each. He may also consider not making the pictures this time. But if he considers that there is a 40% chance of having a good market. In both cases, the production cost will be approximately S 35,000. By making a decision tree chart, he assesses which decision the artist should make and why
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