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Use the table below to answer the following question(s). Calculate the net profit for the headphones. Sujito Electronix makes headphones for $22 and sells them

Use the table below to answer the following question(s).

Calculate the net profit for the headphones. Sujito Electronix makes headphones for $22 and sells them for $32. Sujito has sold at least 50 headphones on average per week in the past, though the actual demand is unknown. Sujito has also often run short of supply in the past. After three months of release, the headphones are sold at 40 percent discount. The spreadsheet below shows Sujito's sales and demand for the headphones. We take demand at 51, and quantity produced at 55.

Newsvendor model for Sujito's headphones

Data

Selling Price

$32

Cost

$22

Discount Price

$19.2

Model

Demand

51

Produced Quantity

55

Quantity Sold

Surplus Quantity

Calculate the net profit for the headphones.

A)$586.8

B)$498.8

C)$466.8

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