Harrys Hardware does a brisk business during the year. During Christmas, Harrys hardware sells Christmas trees for a substantial profit. Unfortunately, any trees sold at the end the season are totally worthless. Thus, the number of trees that are stocked for a given season is very important decision. The following table reveals the demand.

Demand For Christmas Trees	Probability
50	0.05
75	0.4
100	0.2
125	0.3
150	0.2
175	1
200	0.05

Harry sells tress for $80.00 each, but his cost is only $20.00

Use marginal analysis to determine how many trees Harry should stock at his hardware store.

If the cost increased to $35.00 per tree and Harry continues to sell trees for $80.00 each, how many trees should Harry stock?

Harry is thinking about increasing the price to $100.00 per tree. Assume the cost per tree is $20.00. With the new price, it is expected that the probability of selling 50, 75, 100, or 125 trees will be 0.25 each. Harry does not expect to sell more than 125 trees with this price increase. What do you recommend?