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XYZ Company faces a typical make or buy decision . On one hand, XYZ couldproduce the BlenderforSmoothies itself. Cost estimates in this case are as

XYZ Company faces a typical make or buy decision. On one hand, XYZ couldproduce the BlenderforSmoothies itself. Cost estimates in this case are as follows:Alternative: Make Blender for SmoothiesCost per Unit ($)Chance (%)35.002542.502545.003749.0013The company also could have the blendermade by a subcontractor. The subcontractor, however, faces similar uncertainties regarding the costs and has provided XYZ Companywith the following schedule of costs and chances:Alternative: Buy Blender for SmoothiesCost per Unit ($)Chance (%)37.001043.004046.003050.0020If XYZ Company wants to minimize its expected cost of production in this case should it make or buy? a.Draw and solve the decision tree for the given problemto support your recommendation.b.Construct cumulative risk profiles for all possible strategies on one graph. Can you draw any conclusions regarding dominance? Explain.

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