Draw a decision tree in the report showing the uncertainty over the next two period. Identify each node in term of demand and variable cost(affected by the fluctuations in exchange rate) and transition probabilities. Use two decimal points in your notation of variable cost if needed.

Input parameters: - Cost of sourcing from the Chinese supplier: 40 yuans per unit - Cost of sourcing from the local supplier: AUD10 per unit - Sale price: AUD16 - Current exchange rate: AUD1 to 5 yuans - Current demand: 1,000 units - Over the next two periods: Demand will go up or down by 10% at 50-50% chance per period Yuan will strengthen or weaken by 5% at 50-50% chance per period - Order to be placed with the Chinese supplier: 1,050 units - Order to be placed with local supplier: same as actual demand - Discount rate: k = 0.1