1. By using the following information, compute the expected monetary value (EMV) for each capacity plan and choose the best plan.

Large plant profit= $120,000 Large plant loss= $80,000. Medium plant profit= $70,000 Medium plant loss= $20,000 Small plant profit= $50,000 Small plant loss= $10,000 Probability of profit=0.5.

2. A manufacturer produces three types of humidifiers. The retail price of Humidifier Regular (HR) is $60 with variable costs of $20. Humidifier Advanced (HA) sells for $200 for its advanced features. This models variable costs are $80. Humidifier Simple (HS) is a simplified version and only sells for $25 with variable costs of $15. The manufacturer has machines and facilities worth $320,000 annually. The sales data show that 1000 units of HR, 2000 units of HA, and 10,000 units of HS was sold last year. A) Calculate the break-even point of the firm. B) The firm has some idle capacity at these volumes, and chooses to cut the selling price of HR from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?

3. Explain how each of the lean systems affects different types of waste.