What are the two capacity options that Robbie needs to consider? What are their fixed and variable costs? What is the indifference point for the two options? What are the implications of the indifference point?

Draw the decision tree for the roaster decision. If Forster$$s does not invest in the roaster, does Robbie need to worry about the different demand scenarios outlined above? Why or why not?

Calculate the expected value for the two capacity options. Keep in mind that, for the roaster option, any demand above $14,400$ pounds will generate revenues of only $$2\mathrm{.}90$ a pound. Update the decision tree to show your results.

What is the worst possible financial outcome for Forster$$s$?$ The best possible financial outcome? What other factors$$core competency, strategic flexibility, etc.$$should Robbie consider when making this decision?