Zomau Ltd. is in the process of setting a selling price for one of its products. Three prices are under consideration; Sh.40, Sh.43 and Sh.44 per unit. The following information is also provided about future demand for the product under different market conditions: Demand (in units) under the three prices Market condition Sh.40 Sh.43 Sh.44

Best possible 18,000 16,000 l 4,500 Most likely 1 6,000 14,500 l 4,000 Worst possible 12,000 10,000 8,000 Fixed costs are estimated to be Sh.240, 000 and the variable cost per unit is Sh.20. Required: Advise the company on the best possible price to set for the product on the basis of the following decision making criteria: i. Maximax decision rule. ii. Maximin decision rule. iii. Laplace criterion of rationality. iv. Minimax criterion. v. Advise Zomau Ltd. whether it is worth acquiring perfect information, assuming that the cost of obtaining the information is Sh.3, 167