Question: ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s) based on next years demand are shown in

ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s) based on next years demand are shown in the table below.

Next Years Demand Alternative Low High Expand $100 $200 Subcontract $50 $120 Do nothing $40 $50

Using the information above, which alternative should be chosen based on the maximin criterion?

Please explain and show working. Thanks. Will upvote!

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