16

17

The information here is the same for answering questions 16 to 17. Umbra Visage (UV) is a retailer of Zamatia, an upscale maker of eyewear. UV purchases each pair of sunglasses from Zamatia for $75 and sells them for $135. Zamatia's production cost per pair is $35. At the end of the season, UV offers deep discounts to sell remaining inventory. The estimate is each pair of sunglass will only have $25 salvage value if not sold by the end of the season. UV's forecast demand for this pair of sunglasses is: Demand 800 1.000 1.200 1.400 1,600 1,800 Probability 0.11 0.11 0.28 0.22 0.18 0.10 What is the optimal order quantity for UV? Choose the closest number if needed since the order quantity must be in hundreds 1400 1.200 1.000 1600 800 Umbra Visage (UV) is a retailer of Zamatia, an upscale maker of eyewear UV purchases each pair of sunglasses from Zamatia for $75 and sells them for $135. Zamatia's production cost per pair is $35. At the end of the season, UV offers deep discounts to sell remaining inventory. The estimate is each pair of sunglass will only have $25 salvage value if not sold by the end of the season. UV's forecast demand for this pair of sunglasses is: Demand 800 1.000 1,200 1,400 1,600 1,800 Probability 0.11 0.11 0.28 0.22 0.18 0.10 What is UV's expected profit based on its optimal order quantity? $42,060 $41.060 $130,410 $132,060 $65,740