risk and uncertainty december 2014 specimen paper question 2a

Cement Co is a company specialising in the manufacture of cement, a product used in the building industry. The
company has found that when weather conditions are good, the demand for cement increases since more building
work is able to take place. Cement Co is now trying to work out the level of cement production for the coming year
in order to maximise profits. The company has received the following estimates about the probable weather conditions
and corresponding demand levels for the coming year:
Weather Probability Demand
Good 25% 350,000 bags
Average 45% 280,000 bags
Poor 30% 200,000 bags
Each bag of cement sells for $9 and costs $4 to make. If cement is unsold at the end of the year, it has to be disposed
of at a cost of $0·50 per bag. Cement Co has decided to produce at one of the three levels of production to match
forecast demand. It now has to decide which level of cement production to select.
Required:
(a) Construct a pay-off table to show all the possible profit outcomes………………..

I do not understand the working when we are calculating the disposal cost why do we add the $4 to the $0.05?(as shown by the examiner