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The Stereo Warehouse in Georgetown sells stereo sets, which it orders from Fuji Electronics in Japan. Because of shipping and handling costs, each order must be for five stereos. Because of the time it takes to receive an order, the warehouse outlet places an order every time the present stock drops to five stereos. It costs $100 to place an order. It costs the warehouse $400 in lost sales when a customerasks for a stereo and the warehouse is out of stock. It costs $40 to keep each stereo stored in the warehouse. If a customer cannot purchase a stereo when it is requested, the customer will not wait until one comes in but will go to a competitor. The following probability distribution for demand for stereos has been determined:

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