Tri-Products Is Trying to Decide Whether to Make or Buy

question 115

Essay

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 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?

Understand the hierarchical structural organization of the human body.

Identify common diseases and their causes.

Learn surgical procedures and their purposes.

Comprehend medical terminology including prefixes, suffixes, and combining forms.

---

Definitions:

Unintelligent

Lacking intelligence, understanding, or insight; displaying a lack of smart or sensible thinking.

Bad Faith

A concept in existentialist philosophy referring to self-deception or lying to oneself, often to avoid facing uncomfortable truths.

Jean-Paul Sartre

A French philosopher, playwright, novelist, and political activist from the 20th century, recognized for his work in existentialism and phenomenology.

Relationships

The way in which two or more people or things are connected, or the state of being connected.