Question: Section B: Long Questions (SK2, AR1:20 marks] B1: Orders for clothing from Flowers manufacturer for this year's National Day's season must be placed in August.
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Section B: Long Questions (SK2, AR1:20 marks] B1: Orders for clothing from Flowers manufacturer for this year's National Day's season must be placed in August. The cost per National Day's dress is $40 while the anticipated selling price is $90. Demand is projected to be 100, 110, or 120 units. There is a 30 percent chance that demand will be 100 units, a 50 percent chance that demand will be 110 units, and a 20 percent chance that demand will be 120 units. The company believes that any leftover goods will have to be scrapped. Required: Prepare a payoff table, and calculate how many National Day's dresses should be ordered in August? [SK2:10 marks]
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