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An artist wants to sell his paintings He thinks that if the market is pood he can sell 450 copes of the elegat versicn n $140 each 1f the market is ot good he will sell only 300 at $95 each He can make a deluxe veruon of the same drawing utead He feels that if the market is good he can sell 500 copies of the deluxe version at S110 each If the market is not good, he will sell only 400 copies at 570 cach. In esther case, production costs will be approximately $35,000 He can also choose to do nothing If he believes there is a S0% probablity of a good market, what should he do? Why?

An artist wants to sell his paintings He thinks that if the market is pood he can sell 450 copes of the elegat versicn n $140 each 1f the market is ot good he will sell only 300 at $95 each He can make a deluxe veruon of the same drawing utead He feels that if the market is good he can sell 500 copies of the deluxe version at S110 each If the market is not good, he will sell only 400 copies at 570 cach. In esther case, production costs will be approximately $35,000 He can also choose to do nothing If he believes there is a S0% probablity of a good market, what should he do? Why?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An artist wants to sel his paintings He thinks that if the market is pood he can sell 450 copses of the elegant version at $140 each If the market is fot good, he will sell only 300 at $95 each He can make a deluxe version of the same drawing nutead He feels that if the market is good he can sell 500 copies of the deluxe version at $110 each. If the market is not good, he will sell only 400 copies at $70 cach In esher case, production costs will be approximately $35,000. He can also choose to do nothing If he believes there is a S0% probabulity of a good market, what should he do? Why?
Transcribed Image Text:An artist wants to sel his paintings He thinks that if the market is pood he can sell 450 copses of the elegant version at $140 each If the market is fot good, he will sell only 300 at $95 each He can make a deluxe version of the same drawing nutead He feels that if the market is good he can sell 500 copies of the deluxe version at $110 each. If the market is not good, he will sell only 400 copies at $70 cach In esher case, production costs will be approximately $35,000. He can also choose to do nothing If he believes there is a S0% probabulity of a good market, what should he do? Why?
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