Question: 20) King Electronics, Inc. is trying to decide whether to make or buy a part for its new testing system design. If Purchasing from Company

20) King Electronics, Inc. is trying to decide
20) King Electronics, Inc. is trying to decide whether to make or buy a part for its new testing system design. If Purchasing from Company A, the part would cost $1 each with free shipping. If purchasing from Company B, the part would cost $0.75 with $10,000 shipping cost. If King Electronics, Inc. designs and produces it themselves, it would cost $0.25 per unit, and the design investment would cost $50,000. However, the probability that the part design by the company would be useful is only 70%. So, there is a 30% chance that the part would need to be redesigned at an additional cost of $50,000. Whether they make or buy the part, King Electronics, Inc. will need 100,000 of these parts. Using decision trees analysis and EMV for cost, SOLVE THIS PROBLEM ON YOUR OWN AS A DRAFT AND ANSWER THE FOLLOWING QUESTION: what should King Electronics, Inc. do? 10 Points O Purchase from Company A Purchase from Company B Design and produce by themselves Not enough Information to answer the

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