Q. 1

Accessory Warehouse Inc. are about to place an order for industrial AC for a forecast spell of hot weather. They pay $2,000 for each AC, and during the hot spell sell them for $4,000 each. Demand for the AC declines markedly after a cold spell, and any unsold units are discounted to $1,000. Previous experience suggests the likely demand for AC is as follows. How many AC should the company buy?

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