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Doc Nix Productions sells specialty T-Shirts that are sold at a single basketball game each. Doc Nix is trying to decide how many to buy

  1. Doc Nix Productions sells specialty T-Shirts that are sold at a single basketball game each. Doc Nix is trying to decide how many to buy for an upcoming game. During the game itself, which lasts one evening, Doc can sell T-Shirts for $11 apiece. However, when the game ends unsold T-shirts have no value. Due to a licensing agreement, Doc needs to make sure that leftover shirts are destroyed using a method that ends up costing $0.25 for each unsold T-Shirt. It costs Doc $7.50 to buy a specialty T-Shirt from the supplier. The supplier he uses has a cost per shirt of $3. Doc estimates that demand is distributed as shown below. What is the total supply chain profit?
Demand 325 350 375 400 425 450
Probability 0.10 0.15 0.10 0.20 0.25 0.20

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