Question: Acme Clothing Company is anticipating the upcoming winter season and needs to place an order for boots with its supplier, Boots Unlimited. Acme knows that

Acme Clothing Company is anticipating the upcoming winter season and needs to place an order for boots with its supplier, Boots Unlimited. Acme knows that it cant sell pairs of boots for more than $54 and that excess inventory can be dumped at a 50% discount. Boots Unlimited has quoted Acme a $40 price for each pair of boots. Acme has forecasted demand for its pairs of boots at 400 with a normally distributed standard deviation on that forecast of 300 pairs of boots.

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