Question
. A company makes calendars. Past demand and corresponding probability are given below. Price is $12.95 and Cost is $5. Salvage value is 50 cents
. A company makes calendars. Past demand and corresponding probability are given below. Price is $12.95 and Cost is $5. Salvage value is 50 cents each. Create a payoff table. Calculate expected profit for each strategy. How many should the company make?
| Demand | Probability |
| 75,000 | 0.15 |
| 80,000 | 0.25 |
| 85,000 | 0.30 |
| 90,000 | 0.20 |
| 95,000 | 0.10 |
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Small Business Management Creating A Sustainable Competitive Advantage
Authors: Timothy S. Hatten
7th Edition
1544330863, 978-1544330860
