Homework: Assignment #4 Score: 0 of 6 pts X Problem S7.33b 22 of 27 (26 complete HW. As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gibert, you decide that there will definitely should enter that market. However, because rustic furniture has a different finish than your standard offering you decide you need another process line. There is no doubt in your mind about the decision, and you second process. But you do question how large to make it. A large process line is going to cost $450,000, a small process line will cost $325,000. The question, therefore, is the demand for rustic furniture Ahere Gilbert and Tim Ireland of Ireland Market Research, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of high demand resulting in $650,000 profit from sales and a demand resulting in $325,000 profit from sales With a large processine, you could handle the high figure of $650,000. However, with a small process Ine you could not and would be forced to expand at a cost of $125,000), afer which time your profe from sa than the $650,000 because of the lost time in expanding the process. If you do not expand the small process, your profit from sales would be held to $425.000. If you build a smal process and the demand is low, The best option is to open a . with an expected value of $ fround your response to the nearest whole number) Homework: Assignment #4 Score: 0 of 6 pts X Problem S7.33b 22 of 27 (26 complete HW. As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gibert, you decide that there will definitely should enter that market. However, because rustic furniture has a different finish than your standard offering you decide you need another process line. There is no doubt in your mind about the decision, and you second process. But you do question how large to make it. A large process line is going to cost $450,000, a small process line will cost $325,000. The question, therefore, is the demand for rustic furniture Ahere Gilbert and Tim Ireland of Ireland Market Research, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of high demand resulting in $650,000 profit from sales and a demand resulting in $325,000 profit from sales With a large processine, you could handle the high figure of $650,000. However, with a small process Ine you could not and would be forced to expand at a cost of $125,000), afer which time your profe from sa than the $650,000 because of the lost time in expanding the process. If you do not expand the small process, your profit from sales would be held to $425.000. If you build a smal process and the demand is low, The best option is to open a . with an expected value of $ fround your response to the nearest whole number)