You are deciding between continuing to buy preassembled bikes and manufacturing your bikes. There are a lot of changes happening in the economy and you believe there is a 10% chance of a strong outlook and 50% flat and 40% weak over the next 2 years. When the economy is strong you can sell at full price, but you will need to apply different levels of discounts depending on the economy. Option 1: Preassembled bike profit ranges from $500 in a strong economy, $425 if the economy is flat and $200 when weak. Sales of 500 bikes in 2023 and then 600 2024. Option 2: You will buy components and assemble them yourself. You need to invest $75,000 in remodeling a space to do the work; however, earn $50 more profit for each bike ($550, $475, and $250). (Same volume as above) What do you recommend? Include a decision tree graphic to explain which option is the most profitable after 2 years.

You are deciding between continuing to buy preassembled bikes and manufacturing your bikes. There are a lot of changes happening in the economy and you believe there is a 10% chance of a strong outlook and 50% flat and 40% weak over the next 2 years. When the economy is strong you can sell at full price, but you will need to apply different levels of discounts depending on the economy. Option 1: Preassembled bike profit ranges from $500 in a strong economy, $425 if the economy is flat and $200 when weak. Sales of 500 bikes in 2023 and then 6002024. Option 2: You will buy components and assemble them yourself. You need to invest 7.75,000 in remodeling a space to do the work; however, earn $50 more profit for each bike ($550,$475, and $250). (Same volume as above)