Gregory's company has ordered a large supply of paint, but the manufacturer says there is a possibility that the batch they received was defective. However, the company has no choice but to start filling orders, and they are trying to decide where they can safely use the paint. They estimate their profits based on expected rates of return for different products if the paint fails.
Product Paint is not defective Paint is defective
Table/chairs $16,600 $350
Cabinets $35,450 -$4,750
Fixtures $18,450 -$750
Dressers $22,000 -$2,050