Earthly, a partnership between dieticians, produces healthy foods option for kids. Capacity utilization is very high.
The partners are considering some strategic changes. After conducting research, they presented three options and outlined the costs and expected revenue. They also predicted that the economy would either improve or stay the same. The probability of the economy staying the same is 0.3.
The options, costs and expected revenue are given below:
Table 1: Information relating to the three strategic options for change