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chapter3_specialtytoys_beebjor - for every unit and would...

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The sales forecaster’s prediction seems to be accurate. Basically they predicted that 20,000 units is the expected demand but there is a .90 probability that the demand will be between 10,000 and 30,000 units which means that 20,000 would be the median. If they sell 10,000 units they would make 8 dollars for every unit so they would make 8000. If they sold the most likely amount of units they would get 8 dollars
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Unformatted text preview: for every unit and would make 16000. If they did above that and sold 30000 units at 8 dollars profit, they would then make 24,000 profit. They would want to order at more than 30000 units if they think they will project their sales at 70%. I would order at least 30000 units because that way if they hit the expected mark they will still have some units left over....
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