Maxim manufactures a hamster food product called green health. maxim currently has 10,000 bags of green health on hand. the variable production costs per bag are $1.80 and total fixed costs are $10,000. the hamster food can be sold as it is for $9.00 per bag or be processed further into premium green and green deluxe at an additional cost. the additional processing will yield 10,000 bags of premium green and 3,000 bags of green deluxe, which can be sold for $8 and $6 per bag, respectively. assuming maxim further processes green health further into premium green and green deluxe, revenue from the two products would be

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?