A well-known departmental store advertises female fashion garments from time to time in the Sunday press. Only one garment is advertised on each occasion. The managements experience in garments in the price range Rs 3040 leads the management to assess the statistical probability of demand at various levels, after each advertisement, as follows:

The next garment to be advertised at Rs 35 will cost Rs 15 to make and can be disposed of to the trade, if unsold, for Rs 10. The stores advertising agents will charge Rs 37.50 for an artwork and blockmaking for the advertisement and each newspaper will charge Rs 50 for the insertion of the advertisement. You are required to:

(a) Calculate how many garments to the nearest 10 should be purchased by the store in order to maximize the expected gross profit, after advertising in: (i) one newspaper, (ii) two newspapers.

(b) Calculate the amount, if any, of the expected net profit after advertising: (i) in one newspaper, (ii) two newspapers.