A Company That Manufactures Designer Jeans Is Contemplating Whether to Increase

A company that manufactures designer jeans is contemplating whether to increase its advertising budget by $1 million for next year. If the expanded advertising campaign is successful, the company
Expects sales to increase by $1.6 million next year. If the advertising campaign fails, the company
Expects sales to increase by only $400,000 next year. If the advertising budget is not increased, the
Company expects sales to increase by $200,000. Identify the actions in this decision-making problem.

A) Two choices: (1) increase the budget and (2) do not increase the budget.
B) Two possibilities: (1) campaign is successful and (2) campaign is not successful.
C) Four consequences resulting from the Increase/Do Not Increase and Successful/Not Successful combinations.
D) The increase in sales dollars next year.