Business, 26.06.2019 20:10 Lilshawn1

In february, wally wade, owner of bama fan supplies, inc., must place an order with nike for the new alabama football shirts for the coming season. the long lead time is required for the contract manufacturers in asia to order the necessary materials and to begin production in april. the shirts will be delivered to wally in early-august just in time for the new season. nike will charge wally $50 for each shirt he orders, and he will sell each shirt for $75 during the season. there will not be another opportunity for wally to order any more shirts if he runs out. at the end of the season wally will sell all the shirts that are left at a price of $15. obviously, wally doesn’t know exactly what the demand for these shirts will be, but during the past couple of years he has sold an average of 500 shirts each season

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In february, wally wade, owner of bama fan supplies, inc., must place an order with nike for the new...

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