Carson Products sells sweatshirts and is preparing for a World Cup Soccer match. The cost per sweatshirt varies with the quantity purchased as follows:
Quantity Unit cost
4000 $14
5000 $13.5
6000 $13
7000 $12.5
Carson must purchase the shirts one month before the game and has analyzed
the market and estimated sales levels as follows.
Unit sales 4000 5000 6000 7000
Probability 15% 20% 35% 30%
The estimated selling price is $25 for sales made before and at the game day.
Any shirts remaining after game day can be sold at wholesale to a local
discount store for $10.
The expected profit if Carson purchased 6,000 shirts is :
-
$69,000.
-
$72,000.
-
$64,500.
-
$66,000.
Thanks
CAclubindia
