PA 13-8 (Algo) Geoff Gullo owns a small firm that manufactures... Geoff Gullo owns a small firm that manufactures "Gulo Sunglasses?. He has the opportunity to sell a particulor seasonal model to Land's Start a cotalog retaller. Geoff offers Land's Start two purchasing options. Use Table 13.4 - Option 1: Geoff offers to set his price at $60 and agrees to credit Land's $ tart $51 for eech unit Land's Start returns to Geoff at the end of the season (because those units did not sei). Because styles change each year, there is essentially no value in the returned merchandise. - Option 2: Geoff offers a price of \$50 for each unit but returns are no longer accepted. In this case. Land's Start throws out unsold units at the end of the season. This senson's demand for this model will be normally distributed with a mean of 250 and a standard deviation of 75. Land's Start will sell those sunglasses for $96 each. Geoff's unit production cost is $24. Note: If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method, a. How much would Land's Start buy if it chose option 1? Use Table 13.4 and round-up rule. Note: Round your answer up to a whole number. b. How much would Land's Start buy if it chose option 2 ? Use Table 13.4 and round-up rule. Note: Round your answer up to a whole number. c. Use Table 13.4. Which option will Land's Start choose? Complete the table below: Note: Use your rounded order quantities from Parts a 8b. Round your "Expected Inventory and Expected Sales" to 2 decimal places. d. Suppose Land's Start chooses option 1 and orders 250 units. What is Geoff Gullo's expected profit? Use Table 13.4 and the found-up rule. Note: Do not round intermediate calculations. Round your answer up to a whole number. 58 TABLE 13.4 Fuactios \begin{tabular}{|c|c|c|} \hlinez & F(E) & fig \\ \hline-40 & 0,0000 & 0.0000 \\ \hline .39 & 0,0000 & 6000 \\ \hline+3.8 & 0,0001 & 0,000 \\ \hline 9.7 & 00001 & 0000 \\ \hline-3.6 & 0.000 & 0.0000 \\ \hline 35 & 0.0002 & 0.0001 \\ \hline3,4 & 6000 & \\ \hline 33 & opo0s & 6.0001 \\ \hline-32 & & 00002 \\ \hline 31 & 0.0010 & 0.0003 \\ \hline 50 & 0013 & 0,0004 \\ \hline 99 & 05019 & 0.0005 \\ \hline 28 & 000Ns & ocosis \\ \hline 27 & 0.035 & ODOI \\ \hline 26 & 0005 & eosis \\ \hline 25 & 00062 & 0000 \\ \hline 24 & & 0,0027 \\ \hline 23 & 0.0107 & 0cos7 \\ \hline 32 & 60139 & \\ \hline-2.1 & & 00065 \\ \hline-20 & & 00065 \\ \hline-19 & 0.0867 & o0111 \\ \hline-18 & 0.0359 & 0.0143 \\ \hline 47 & 00446 & 0.016 \\ \hline-16 & onsal & 0002 \\ \hline-15 & 0 cosis & \\ \hline-14 & 0008 & 00367 \\ \hline+13 & 0 nost & 0.0455 \\ \hline-12 & 0.1151 & 00561 \\ \hline 41 & 0.259 & ocess \\ \hline-10 & 0.1587 & Cof33 \\ \hline 09 & 0.1641 & 0.5004 \\ \hline6x & 02119 & 0.132 \\ \hline 07 & 02430 & 0,49 \\ \hline0,6 & 02743 & 0.56 \\ \hline-0.5 & 0,3045 & 0.975 \\ \hline 04 & 03446 & 02604 \\ \hline 03 & 0.3621 & \\ \hline .02 & Dasol & 03069 \\ \hline 21 & 6. 4602 & 0360 \\ \hline 00 & 05000 & \\ \hline 01 & 05 sing & 0.450 \\ \hline 0,2 & 0570 & 05009 \\ \hline 03 & & 0.566 \\ \hline 04 & 0.655 & 06394 \\ \hline 05 & 06915 & 0 ons \\ \hline 60 & 0.3237 & 6.7009 \\ \hline 07 & 035 & \\ \hline 65 & 0.783 & 09200 \\ \hline 09 & 015% & 10004 \\ \hline in & 0.413 & 10613 \\ \hline 1.1 & & 1.164 \\ \hline 14 & anste & \\ \hline \end{tabular}
