Edgen Murray is a distributor of carbon, chrome and alloy pipes. They would like to estimate sales levels for their welded sections for riser pipes. Using two-point method, they have observed that:

When the probability of stock out is 14%, the sales level is 7900 sections/week.

When the product availability is 90%, the sales level is 8500 sections/week.

a) What is the estimated weekly sales if the probability of stock out is 10%? (5 point)

b) What is the estimated weekly sales level if the probability of stock out is 12%? (5 points)

c) What is the increase in weekly sales if the probability of stock out decreases by 1%? (5 points)