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    15 views2 pages

    Tree

    Uploaded by

    Allen Ni
    :)]

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Year

    2003
    2004
    2005
    2006
    2007

    Probabilit
    y
    .25
    .25
    .25
    .25
    .25

    Demand Fixed Costs

    Variable Costs

    10000
    10500
    11000
    11500
    12000

    50000000

    (10000)
    (10500)
    (11000)
    (11500)
    (12000)

    Demand

    Fixed Costs

    Variable Costs

    15000
    16000
    17000
    18000
    19000

    65000000

    (15000)
    (16000)
    (17000)
    (18000)
    (19000)

    Demand

    Fixed Costs

    Variable Costs

    20000
    24000
    26000
    28000
    30000

    80000000

    /
    /
    /
    /
    /
    Low
    Moderate ------Year
    2003
    2004
    2005
    2006
    2007

    Probabilit
    y
    .5
    .5
    .5
    .5
    .5

    High
    \
    \
    \
    \
    \
    Year
    2003
    2004
    2005
    2006
    2007
    Expected Value
    Total Cost

    Low

    Probabilit
    y
    .25
    .25
    .25
    .25
    .25

    110000000

    Moderate

    High

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