Chelsea Truman sells celebrity magazines on Sunday morning in an area surrounded by three busy shopping centers.
Question:
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Chelsea has decided to order 100 magazines from her supplier. Chelsea pays $2 for each magazine she orders and sells each magazine for $3. Unsold magazines can be returned to the supplier for $0.75.
(a) Simulate 1 year (52 Sundays) of operation to calculate Chelsea€™s total yearly profit. Replicate this calculation N times. What is the average yearly profit?
(b) Chelsea would like to investigate the profit-ability of ordering 50,100,150, and 175 magazines at the start of each Sunday. Which order quantity would you recommend? Why?
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Related Book For 
Managerial Decision Modeling With Spreadsheets
ISBN: 9780136115830
3rd Edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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