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This is a subjective question hence you have to write your answer in the fext Fielo given below reproduce it and sell framed copies to
This is a subjective question hence you have to write your answer in the fext Fielo given below reproduce it and sell framed copies to current and former residents. He thinks that if the market is good, he can sell 400 coppes of the ctoryart version at $125 each. If the market is not good, he will sell only 300 at $90 each. He can make a deluxe version of the same drawning inctead He feels that if the market is good, he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell onily 4000 conpes al $70 each. In either case, production costs will be approximately $35,000. He can also choose to do nothing. If he believes there is a 50% probability of a good market, what should he do? Why? (b) Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals The bues cost for proposal A is $65,000, and for proposal B,$34,000. The variable cos for A is $10, and for B,$14. The revenue generated by each wit is $18. At an expected volume of 8,300 units, which alternative should be chosen? [2 marks]
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