Egress Inc. is a small company that designs, produces, and markets ski jackets and other coats. The creative design team has worked hard on its new design for the upcoming ski season. It's time to decide how many jackets to produce. Because of lead times, only one production run can be made for the season. Predicting ski jacket sales is tricky, and the company has only had three years of experience with its ski jacket product. Twelve employees were asked to estimate unit sales for the upcoming season. Their estimates are in Table 1 below.

able 1: Employee Estimates of Unit Sales 14,000 16,000 13,000 8,000 14,000 5,000 14,000 11,000 15,000 000 10,500 15.000Criteria Ratings Pts 5 pts 0 pts Student used correct demand distribution and parameters Full Marks No Marks / 5 pts Student used correct production 5 pts 0 pts Full Marks No Marks levels to test / 5 pts 5 pts 0 pts Student defined summary Full Marks No Marks measures properly / 5 pts Student set up Profit Model 5 pts 0 pts Full Marks No Marks correctly / 5 pts Student correctly set up demand 5 pts 0 pts probability distribution, output Full Marks No Marks / 5 pts variable, and simtable 5 pts 0 pts Student set up summary Full Marks No Marks measures correctly / 5 ptsReport: Introduction, Purpose Full Marks No Marks paragraph / 5 pts 5 pts 0 pts Report: Model assumptions Full Marks No Marks clearly described / 5 pts Report: Simulation method 5 pts 0 pts clearly described for a lay Full Marks No Marks / 5 pts audience 5 pts 0 pts Report: Results and their Full Marks No Marks meanings clearly described / 5 pts Appropriate recommendation 10 pts 0 pts made and supported with Full Marks No Marks / 10 pts evidence Report : Limitations and 5 pts 0 pts Cautions Full Marks No Marks / 5 pts view longer description Report: Good use of tables and 5 pts 0 pts Full Marks No Marks graphs / 5 ptsTable 2: Costs and Prices Unit Variable Production Cost $80 Selling Price per Unit $100 Salvage Value per Unit $30