A retailer decides to sell good quality Easter eggs in the period leading up to Easter.If the retailer sells them before Easter the retail price will be 5 per chocolate egg, but after Easter this will be reduced to sell any remaining stock.The reductions are as follows:

If there are less than 200 eggs remaining they will be sold for 3 each.

If there are between 200 and 499 eggs remaining they will be sold for 2 each.

If there are 500 or more eggs remaining they will be sold for 1 each.

The retailer can buy the eggs for 2 each and in batch sizes of 500.

The projected demand for the Easter eggs is:

Weak demand- sell only 600 eggs before Easter.

Fair demand- sell only 1200 eggs before Easter.

Good demand- sell only 1600 eggs before Easter.

Strong demand- sell 2300 eggs before Easter.

If the retailer sells 2500 eggs there will be an additional 300 cost for extra staff.

(a) Draw up a contingency table showing, with calculations, the income, expenses and profits should the retailer stock 500, 1000, 1500, 2000 or 2500 eggs under the four different levels of demand.(Show the retailer's possible stock levels in the first column of the table.)12 marks

(b) Determine the maximin, the maximax and the minimax regret criteria.