Question: he USC Student Store is preparing for May commencement and needs to stock graduation packages ( cap , gown, and tassel sets ) . The

he USC Student Store is preparing for May commencement and needs to stock
graduation packages (cap, gown, and tassel sets). The cost to acquire each set is $75
from the supplier and can be sold to graduating students for $100. Any excess sets must
be stored until next year's graduation, depreciating to a value of $20 due to storage costs
and style changes. If a student can't get their regalia from the student store, they must
rush-order directly from the supplier at a higher cost, damaging the store's reputation with
students and families and creating an estimated negative impact of $25 per stockout.
Based on data from past graduations, the store estimates there is a 5% chance they will
sell 600 sets, a 10% chance they will sell 500, a 45% chance they will sell 400 and a 40%
chance they will sell 300. You can assume they will sell exactly 600,500,400, or 300 sets.

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