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Assuming you operate a small retail store, and with winter approaching, you must place an order for warm, handwoven beanie hats imported from a fair
Assuming you operate a small retail store, and with winter approaching, you must place an order for warm, handwoven beanie hats imported from a fair trade company. The production and shipment process is time-consuming, preventing additional orders until the next winter. Each hat costs $10, and you retail them at $20. Due to storage constraints, you sell the remaining hats to an online outlet website for $5 each after winter. Answer Questions 1-3 assuming the demand for hats follows a normal distribution with an average of 300 and standard deviation of 100 hats. Q1) In the scenario where we order 100 hats but the demand is only for 90 hats, what would be the net profit of this order? a) $525 b) $1250 c) $425 d) $850 e) $625 f) $1050
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