Decision trees can be used to determine the best possible alternatives and potential payoff for a new product or solving other management problems where uncertainty is present. your task is to build a decision tree based on the following scenario om, inc., a manufacturer of widgets, is considering the possibility of producing a new super-duper widget using 3d printing. this new project will require om, inc. to either purchase a high-end 3d printer or hire and train four additional employees. the market for the new widget could be either favorable or unfavorable. in the end, om inc., can also decide not to develop the new widget. sales for favorable acceptance by customers would be 25,000 widgets selling for $90 each. with unfavorable acceptance, sales of the widgets would only be 8,000 widgets at a selling price of $90 each. the cost of the 3d printing system is $600,000. the hiring and training of four new employees would cost only $400,000. in the end, manufacturing costs should drop from $60 for each widget when manufacturing without 3d printing to $50 each when 3d printed. the probability of favorable acceptance of the new widget is 40; the probability of unfavorable acceptance is.60 » before you start building your decision tree, review the how to build a decision tree in excel om example presentation narrated by the course developer dr. bob walton.

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event.inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded.required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)