RY Decision Tree question – KAPLAN

Good Evening,

I have attempted the RY Decision Tree question found in the Kaplan Exam Kit Dec11.

Question a) Draw decision tree to illustrate the prcing decision faced by RY Ltd.

I am able to draw the Decision Tree and calculate the seliing price and variable price to attach to the tree however I dont understand the figures represented at the end of the decision tree, which I think relate to Variable Costs.

I have two questions:

1) Is the first question just asking me to draw the decision tree without any figures attached to it?

2) Can you explain how I get the end figures running down the right hand side of the tree which seem to form part of the calcuation for question b but not shown in the solution.

Kind Regards

Mat Elliott