Question: Question 16 3 pts This is an extra-point question ! You might want to do it last, when you have time. Tri-products is trying to

Question 16 3 pts This is an extra-point question

Question 16 3 pts This is an extra-point question ! You might want to do it last, when you have time. Tri-products is trying to decide whether to make or buy an accessory item for one of their products. It is projected that this item will sell for $10 each. If the item is outsourced, there is virtually no cost other than the $6 per unit that they would pay their supplier. Internally, they have two choices. Process A requires an investment of $120,000 for design and equipment, but it results in a $4 per unit cost. Process B requires only a $100,000 investment, but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that they will sell 50,000 units, and a 50% chance that they will sell 100,000 units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using the decision tree and EMV, what is their best choice? Draw your decision tree to show your work on a paper. The score of this question will be adjusted to maximum of 1.5 points. Edit View Insert Format Tools Table

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