Scenario: ed is the proud new owner of a flower shop. his most popular arrangement sells for $45. ed has determined that the cost of materials for this flower arrangement is $5. ed has also determined that it takes his employee about one hour to complete one arrangement, and this employee is paid $12 per hour. additional costs include $5 per arrangement to cover such expenses as rent and electricity.

use the information presented in the scenario and the drop-down menus to answer these questions.

ed's revenue from selling his most popular arrangement is .

ed's total production costs for one flower arrangement are .

ed's profit on each arrangement is

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)?