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A company needs special gears. The machinery to make the gears can be rented for $100,000 for 1 year, but the company can buy the gears and avoid the rental cost. Because the demand for the gears may be high (6 probability) or low (4 probability) and contribution margins vary, the company prepared the following decision tree:  Which of the following statements is true?A. The expected value of making is $20,000. B. The expected value of buying is $70,000. C. Making the gears is the best choice. D. Buying the gears is the best choice. |