2. Operations Management
3. using moleculargastronomy techniques nitrofood developed a new product called iceydog...

# Question: using moleculargastronomy techniques nitrofood developed a new product called iceydog...

###### Question details

Using molecular-gastronomy techniques, NitroFood developed a new product called icey-dog, where hot-dogs are instantaneously frozen with liquid nitrogen to seal the flavor.
The company can choose between licensing the technology for $85M to Oscar-Meyer or sell the product on their own. We know that, if they sell by themselves, NitroFood will make$3.0 per package of hot dogs and the company will sell either 70 Million (high demand), 40 Million (medium demand), or 15 Million (low demand) packages of hot dogs, depending on how the customers like the new frozen hot dogs.

If they decide to sell the products on their own. They need to make an advanced investment of 28M to build machines that freeze hot dogs.

1. How much is the payoff, if NitroFood licenses the technology to Oscar-Meyer and the demand is high?
1. How much is the payoff, if NitroFood licenses the technology to Oscar-Meyer and the demand is medium?

1. How much is the payoff, if NitroFood licenses the technology to Oscar-Meyer and the demand is low?
1. How much is the payoff, if NitroFood sells the product on their own and the demand is high?

1. How much is the payoff, if NitroFood sells the product on their own and the demand is medium?

1. How much is the payoff, if NitroFood sells the product on their own and the demand is low?