The Gilbert Air Conditioning Company is considering purchase of a special shipment of portable air conditioners from Japan. Each unit will cost Gilbert $ 80 and be sold for $ 125. Gilbert does not want to carry over surplus air conditioners to the following year. Thus, all surplus units will be sold to a wholesaler who has agreed to take them for $ 50 per unit. Given the probability distribution for air conditioners shown below, recommend an order quantity and the anticipated profit using expected value analysis:

          Demand          Estimated Probability

0……………………   .30

1……………………   .35

2……………………   .20

3……………………   .10

4……………………   .05