Question
A city wants to promote annual marathon event by ordering and selling T-shirts. Sales price is $12.95, Cost is $5.00, and Salvage value is $0.50.
A city wants to promote annual marathon event by ordering and selling T-shirts. Sales price is $12.95, Cost is $5.00, and Salvage value is $0.50. From previous years' sales history the following data is available. Setup the payoff table with expected profit. How many T-shirts should they order and stock?
Demand | Probability |
75,000 | 5% |
80,000 | 20% |
85,000 | 25% |
90,000 | 30% |
95,000 | 20% |
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Operations Management
Authors: William J Stevenson
12th edition
2900078024107, 78024102, 978-0078024108
