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Transcription of this question: SassySassy, a partnership between fashion designers, produces clothes for teenagers. Capacityutilization is very high.The partners are considering some strategic changes. After conducting research, theypresented three options and outlined the costs and expected revenue. They also predictedthat the economy would either improve or stay the same. The probability of the economystaying the same is 0.3.The options, costs and expected revenue are given below:OptionsOption 1: Increaseproduction capacityOption 2: Dissolve thepartnership and sellSassy’s brand name to acompetitorOption 3: Become aprivate limited companyand:(a)(b)Stay with thecurrent productrange andproduction levelORDevelop a newproduct range ofchildren’s clothes.Costs$200000Not applicable$150000(legal costs)No additionalcosts$170000additional costExpected revenue$300 000 (economy improves)$250000 (economy stays the same)$150000Not applicable$220000 (economy improves)$170000 (economy stays the same)$550000 (economy improves)$450000 (economy stays the same)(a)(b)(c)Describe one disadvantage for an organization of operating at high capacity utilization.Construct a fully labelled decision tree and identify the best option for Sassy (show allyour working).Explain one limitation for Sassy of using a decision tree as a planning tool.[2][6][2]

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