(Chapter 13 Newsvendor Problem) The Winona Knit Mercantile (WKM), a chain of retailers of wool sweaters, purchases the sweaters from an Iowa wholesaler, Chilwool Inc. (CI), at $15 per unit which WKM orders 3 months ahead of the selling season. WKM's retail price is $30. At the end of the selling season, discount outlets such as Marshall's buy the sweaters from WKM at $13 each. WKM's demand forecast for the sweater is normally distributed with a mean of 2,500 sweaters and standard deviation of 1,200 sweaters. What is WKM's approximate optimum expected sales and optimum expected profit? (Use Table 13.4 and round-up rule) TABLE 13.4 The Distribution and Expected Inventory, 40). Functions for the Stenderd Normal Fun Fun kn -40 0000 0000 -13 0968 14 14367 -39 0000 0000 0561 1.5 9332 15393 0001 0000 -11 1357 15 -37 0001 0000 -10 1587 0833 17 3554 18232 17183 0003 0000 -09 1841 1004 18 3641 18143 -35 0002 0001 -08 2119 1302 9713 19111 -34 0003 0001 -0.7 3430 3429 20 3773 20005 -33 0005 0001 -06 2743 1667 2.1 3821 21065 0000 -05 3005 1979 22 23049 -31 0010 0003 -04 3446 3304 23 3853 33037 -30 0013 0004 -03 3821 2.4 3918 24027 -2.9 0019 0005 -03 4207 3069 25 9938 2.5030 -20 0036 0000 -01 4603 3509 26 26015 -27 0035 0011 0 5000 27 3965 27011 -26 0047 0015 5399 4509 28 9974 2800 -25 0062 0020 3 5792 5009 29 9981 2005 -24 0003 0037 3 6179 30 3007 30004 -23 0107 003 4 6554 6304 21 9990 31003 -22 0139 0049 6915 ASTR 33 3993 33002 -21 0179 0005 7257 3447 33 3995 33001 -20 0228 0005 T 7580 3429 34 3957 34001 -19 0287 0111 " 3881 9302 35 3998 35001 BL- 0350 0143 ... 8159 1.0004 36 3998 34000 -17 0446 0183 10 8413 27 37000 -16 0548 0233 8643 1,1600 38 18000 -15 0668 0293 12 13561 3.9 10000 30000 -14 000 10363 13 9032 13455 40 10000 4.0000 Expected sales is 1507 units; expected profit is $5705 Expected sales is 2433 units; expected profit is $33476. Expected sales is 3940 units; expected profit is $33476. Expected sales is 3940 units; expected profit is $78695.