Slick Inc. produces a product called Zap. T. Smoothy, marketing director of Slick Inc., is currently attempting to decide on an appropriate sales price for each unit of Zap for the coming year. Smoothy believes that a higher price would reduce demand for Zap, but that actual final demand would depend on whether the state of the economy next year is weak or strong.
Smoothy's situation is further complicated because next year's materials requirement must be purchased in a single lot of either 200,000 or 240,000 units, and the unit cost of the material will depend on the size of the lot ordered. The sole supplier of the material will accept no additional orders during the year. Therefore, if Slick Inc. does not purchase enough material to meet actual demand, some orders will be left unfilled. Furthermore, if more material is purchased than is required to fill demand, the excess material will spoil and be unusable at the end of the year. One unit of material is required for each unit of Zap. Material cost data follow:
Lot Size Unit Cost
200,000 units .............$3.00
240,000 units ................ 2.90
Expected demand for Zap given different states of the economy and different sales prices follow:

Smoothy believes that there is a 60% probability that the economy will be weak and 40% that it will be strong.
Required:
Prepare a decision tree representing Slick Inc.'s decision problem, including all decision alternatives and possible outcomes with related expected values.

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State of Economy Unit Sales Price $5.25 5.00 Weak 180,000 200,000 Stron 200,000 240,000