Michael is concerned with setting a correct production level. He can produce 500 units or 1100 units and
regardless of the unit count or costs, he has to produce either 500 or 1100 units. Regardless of production, there is a 45% chance of high demand (2000 units) and a 35% chance of low demand (350 units) and a 20% chance of average demand (1000 units). Each unit costs $15 to produce and sells for $25. He can only sell the minimum of either demand or production (since he can't sell what he doesn't make and can't sell what isn't demanded).
Which production decision should Michael make if he wants to make sure that he doesn't lose money?