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Bascomb's Candy is considering the introduction of a new line of products. In order to produce the new line, the bakery is considering either a major or minor renovation of the current plant. The market for the new line of products could be either favorable or unfavorable. Bascomb's Candy has the option of not developing the new product line at all. With major renovation, at Bascomb's Candy the payoff from a favorable market is $100,000 and from an unfavorable market. Minor renovations and favorable market has a payoff of $40,000 and an unfavorable market. Assuming that a favorable market and an unfavorable market are equally likely, solve the decision tree.

Operation Management, Management Studies

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