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Gregory's company has ordered a large supply of paint, but the manufacturer says there is a possibility that the batch they received was defective. However, the company has no choice but to start filling orders, and they are trying to decide where they can safely use the paint. They estimate their profits based on expected rates of return for different products if the paint fails.

Product                    Paint is not defective        Paint is defective

Table/chairs                $16,600                              $350

Cabinets                     $35,450                             -$4,750

Fixtures                      $18,450                             -$750

Dressers                     $22,000                             -$2,050

Operation Management, Management Studies

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