Assignment: Newsvendor Problem Assume the demand for the swimming suits is uncertain, and the probability is summarized as follows: Demand Probability 8000 11% 10000 11% 12000 28% 14000 22% 16000 18% 18000 10% . 1) Manufacturer's costs include Fixed production cost = $100,000 Variable production cost for each unit = $35/unit Unit selling price = $125 /unit Unsold items are sold to the discount store @ $20/unit The manufacturer produces and sells the swimming suits to the customers, and wants to maximize his expected profits. a) What is the optimal level of production? b) What is the expected profit for the manufacturer