A company wants to produce and sell a July 4th T-shirt. Sales price is $12.95, Cost...

 

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A company wants to produce and sell a July 4th T-shirt. Sales price is $12.95, Cost is $5.00, and Salvage value is $0.50. From previous years' sales the following demand data is available. a) Setup the payoff table b) How many T-shirts should they produce and stock? What is expected profit? Demand Probability 75,000 5% 80,000 20% 85,000 25% 90,000 30% 95,000 20% A company wants to produce and sell a July 4th T-shirt. Sales price is $12.95, Cost is $5.00, and Salvage value is $0.50. From previous years' sales the following demand data is available. a) Setup the payoff table b) How many T-shirts should they produce and stock? What is expected profit? Demand Probability 75,000 5% 80,000 20% 85,000 25% 90,000 30% 95,000 20%

Answer rating: 100% (QA)

Please refer to the following payoff table calculation snapshots Sales Minimum of Demand Production ... View the full answer