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1 (Single-Period Inventory Model) (3 points) Threaded Expressions is a bespoke T-shirt printing company that thrives on crafting unique designs for special events such as
1 (Single-Period Inventory Model) (3 points) Threaded Expressions is a bespoke T-shirt printing company that thrives on crafting unique designs for special events such as conventions and internet marketing conferences. Every year, the owner faces the challenge of determining the right number of T-shirts to produce for a large trade show in her industry. The demand at the trade show is uncertain, and overproduction could lead to a surplus of unsold T-shirts. To mitigate this, the owner holds a clearance sale for any unsold stock at the end of the event. The specifics are as follows: Cost of Production: $10 per T-shirt Selling Price at Event: $20 per T-shirt Clearance Sale Price: $4 per T-shirt post-event Historical Demand: On average, 550 T-shirts with a standard deviation of 185 Task: Given the above data, assist the owner of Threaded Expressions in determining the optimal number of T-shirts to produce to maximize their profits at the trade show. Please ensure to show all your calculations
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