A Factory manufactures three types of Cars.

 A Factory manufactures three types of Cars. The fixed and variable costs are given below Fixed Cost Variable cost/unitCar 1 400 50Car 2 300 60Car 3 500 60The demand is uncertain. If the demand is poor the factory expected to sell 200 units, if demand is moderatethen it will sell 500 units and if it is high the sales is expected 1000 units. If sales prices of each type of car is12,000 Omr/unit thena. Prepare the payoff table. b. Identify the decision taken under the pessimistic approach. c. Identify the decision taken under Hurwicz criterion with the optimism (0.7)