4 Chip Bilton sells sweatshirts at State U football games.

He is equally likely to sell 200 or 400 sweatshirts at each game. Each time Chip places an order, he pays $500 plus

$5 for each sweatshirt he orders. Each sweatshirt sells for

$8. A holding cost of $2 per shirt (because of the opportunity cost for capital tied up in sweatshirts as well as storage costs) is assessed against each shirt left at the end of a game. Chip can store at most 400 shirts after each game.

Assuming that the number of shirts ordered by Chip must be a multiple of 100, determine an ordering policy that maximizes expected profits earned during the first three games of the season. Assume that any leftover sweatshirts have a value of $6.