Question: Assuming you operate a small retail store, and with winter approaching, you must place an order for warm, handwoven beanie hats imported from a fair

Assuming you operate a small retail store, and with winter approaching, you must place an order for warm, handwoven beanie hats imported from a fair trade company. The production and shipment process is time-consuming, preventing additional orders until the next winter. Each hat costs $10, and you retail them at $20. Due to storage constraints, you sell the remaining hats to an online outlet website for $5 each after winter. Answer Questions 1-3 assuming the demand for hats follows a normal distribution with an average of 300 and standard deviation of 100 hats. After presenting your calculations to your business partner, she points out the omission of goodwill cost. Believing that people prefer completing all seasonal shopping in one place, she suggests that for every hat in shortage, you incur a $7 cost in the lost sales of other items. Considering this, how many hats should you order before winter? a) 375 b) 322 c) 410 d) 469 e) 248 f) 598

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