Wayne Corp. is considering entering a foreign market to sell its Lightning tennis racquet. If Wayne Corp. enters the market and sells racquets, they would have to incur additional fixed costs of $100,000 and variable costs of $50/racquet. Revenues would increase by $150/racquet. Wayne Corp. forecasts that sales in the foreign market will be either 700, or 1,500, with corresponding probabilities of .4, and .6, respectively.

Wayne Corp. can hire for $10,000 a marketing expert, Tony B. from the University of Toledo who will perfectly reveal racquet sales prior to Wayne Corp.'s decision.

1. Should Wayne Corp. continue? Show computations.