Please Help with #20

Tools for Capacity Planning 20. Dawson Electronics is a manufacturer of high-tech con- trol modules for lawn sprinkler systems. Denise, the CEO, is trying to decide if the company should develop one of the two potential new products, the Water Saver 1000 or the Greener Grass 5000. With each product, Dawson can capture a bigger market share if it chooses to expand capacity by buying additional machine Given different demand scenarios, their probe occurrence, and capacity expansion versus no capacity, the potential sales of each product at rized in Table 4.5. Du Demand Medium Demand TASLE 4.5 DEMAND AND SALES INFORMATION b. Which product should Denise choose to produce, and FOR DAWSON ELECTRONICS Water Saver Greener Grass 1000 Dollar 5000 Dollar Probability Sales ($1,000) Sales ($1,000) of Occurrence With Capacity Expansion 1,000 2.500 0.25 2,000 3,000 0.50 3,000 5,000 0.25 Without Capacity Expansion Lar Demand 700 1,000 0.25 Medium Demand 1,000 2,000 0.50 High Demand 2,000 3,000 0.25 4. What is the expected payoff for Water Saver 1000 and the Greener Grass 5000, with and without capacity expansion? on Demand with which capacity expansion option