Kallie Inc

Multiple Choice

Kallie Inc. ,a small parts manufacturer,has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand.The following payoff table describes the company's decision situation. The regret that is associated with the decision to acquire competitor when demand is low is

A) $0.
B) $525,000.
C) $1,250,000.
D) $1,275,000.