This is a practical question on DECISION-MAKING UNDER CONDITIONS OF RISK AND UNCERTAINTY

John Doe Ltd is a family run honeybee farming business. The bees are guided to collect pollen and nectar from organically produced plants and flowers that are grown fertilizer free. The nectar carried on the bee's stomach is placed into the cells of the honeycomb, which becomes honey. If the honey collected is of a high grade, the honey can be sold for $36 per case, whereas if the honey is of medium grade, it can be sold for $28 per case. The lowest grade of honey can be sold for $18 per case. If it is not sold on the same day, the high quality honey will be reclassified and sold as medium quality on the market, which costs an extra $8 to reclassify, while the medium quality will be reclassified and sold as low quality, which costs an extra $6. The cost for Bumbles Ltd to extract, package and market the honey for the high, medium and low grades are $20, $12 and $8 respectively. The daily quantity of cases sold and the number of days that had these daily sales levels is detailed below. This information is based on a study carried out over a period of 344 days.

NB: Expected Demands: Low demand = 20 cases, Medium demand = 40 cases and High demand = 60 cases

Attached to this question is the picture of the Activity level of the sales records, please download it.

__ Number or days sold LL. 0 he :6 3m 3m 0'63 :5 f C.) Low demand = 20 cases, Medium demand = 40 cases and High demand = 60 cases