Business, 21.02.2020 23:40 ayoismeisalex

A sweatshirt supplier is trying to decide how many sweatshirts to print for the

upcoming NCAA basketball championships. The final four teams have emerged from the quarterfinal round, and there is now a week left until the semifinals, which are then followed in a couple of days by the finals. Each sweatshirt costs $10 to produce and sells for $25. However, in three weeks, any leftover sweatshirts will be put on sale for half price, $12.50. The supplier assumes that the demand for his sweatshirts during the next three weeks (when the interest in the tournament is at its highest) has the following distribution (see below table). The residual demand, after the sweatshirts have been put on sale, has the distribution also shown in the below table. Also develop a data table for average profit as function of order quantity. What order quantity provides the best profit?

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