Instructions: Please read the Operations Management - Do ALL Questions Submit in APA format- font size 12 times New Roman double space.

Marian Luther, president of Luthers Electronics has two design options of her latest product line high-resolution cathode-ray tube ( CRT) for computer aided design workstations. The life cycle sales forecast is $100,000 units.

Design Options A

Has a .90 probability of yielding 59 good CRTs per 100 and .10 probability of yielding 64 good CRTs per 100. This design will cost $1,000,000.00

Design Option B

a .80 probability of yielding 64 good units per 100 and a .20 probability of 59 good units per 100. This design will cost $1,350,000.00 Good or bad, each CRT will cost $75. The good CRT will sell for $150 ( the bad ones are destroyed and have no salvage value. Ignore any disposal costs.