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Transcription of this question: 2.Aroma Corporation (AC)Aroma Corporation (AC) is a mass-market cosmetics company that produces soaps.Concemed about falling market share and profit, AC conducted new market research.The senior management team is considering two strategic options.Option 1: research and develop new environmentally friendly soapsOption 2: buy new machinery to produce more of the current productsThe probabilities, forecast costs and revenues of each option are given below:Option 1research and developnew environmentallyfriendly soapsForecast costs$990 000Forecast revenueif successfulProbability: 0.45$1 700 000Forecast revenueif not successfulProbability: 0.55$550 000Option 2a) buy new machinerywithout trainingb) buy new machinerywith traininForecast costs$450 000$475 000Forecast revenueif successfulProbability: 0.60$1 000 000$1 250 000Forecast revenueif not successfulProbability: 0.40$250 000$200 000(a)(b)(c)Describe one method (source) of secondary market research that AC could have used.Construct a fully labelled decision tree, calculate the predicted outcome for each optionand identify the best option for AC (show a/’ your working).Explain one limitation of using a decision tree as a planning tool for AC.[2][2]

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