Trojan Donuts (12 points) Question 4 (12 points): Having recently learned about cronuts (croissant-donut pastries invented by Chef Dominique Ansel in New York City), On the other hand, if Trojan Donuts decides not to add cronuts to its product line, Trojan Donuts estimates Trojan Donuts is considering whether or not to add cronuts to its product line. It estimates the associated cost (e.g., buying new machines the change in its revenue for the coming year to be the following-- and training its chefs) to be $18,000. Furthermore, there is a rumor that with a 30% chance, Chef Ansel will move to Los Angeles (because he is sick of snow storms in NYC) to open a bakery. If he does, Trojan Donuts will lose some of its customers to Chef Ansel. If Trojan Donuts decides to add cronuts to its product line, Trojan Donuts estimates the change in its revenue for the coming year to be the following: Change in Trojan Donuts' revenue for Demand Change in Trojan Donuts' Change in Trojan Donuts' Demand for Probability revenue for the first year if revenue for the first year if Chef Ansel's cronuts Probability the first year if Trojan Donuts doesn't for add cronuts and Chef Ansel comes cronuts Chef Ansel doesn't come Chef Ansel comes Low 0.4 -$5,000 Low 0.6 +$10,000 +$3,000 Medium 0.5 -$10,000 Medium 0.2 +$20,000 +$12,000 High 0. 1 -$30,000 High 0.2 +$50,000 +$40,000 Trojan Donuts wants to maximize its expected revenue for the coming year. That is, (because the US donut industry is changing so quickly) it doesn't care about its expected revenue after the first year. Should Trojan Donuts add cronuts to its product line? a) (7 pts) Build a decision tree in Treeplan to describe your decision in the colored box. Be sure to appropriately label your branches and to include payoffs and probabilities for each branch. b) (5 pts) How sensitive is your solution to part a) to the cost (of buying new machines and training its chefs). Is there a threshold value above which your decision to part a) would change? Provide your answer in the colored box