Optronics has received a request for a proposal (RFP) to supply 3,000 units of a new optical device. Terms of RFP states that Optronics must submit 50 samples of the new device to the company who has issued the RFP. The cost of providing the samples comes at a cost of $50,000, which must be borne by Optronics. Optronics believes that the probability of winning the contract will be 40% if they prepare the proposal and provide the required samples. lfthe company issuing the RFP is satisfied with the proposal and samples that Optronics sends, they will receive a contract worth $2,500,000. Optronics has identified three formal processes (i.e. A, B, and C) that could be used to ramp up production if they were to win the contract. It should be noted that none ofthe proposed processes were used to create the original samples. The costs of the proposed processes are high because Optronics must consider the cost of new machines, new layouts, and other quality considerations when producing a relatively high-volume of optical drives that they plan to manufacture. Each of the three processes has a different fixed cost. These costs are shown in Table 1