Scenario C.2 Egan Schranz Sells Klammelhoffer Skis Out of His Store in Store

Multiple Choice

Scenario C.2
Egan Schranz sells Klammelhoffer skis out of his store in the Alps. The store makes a $75 profit per unit sold during the ski season, but it will take a $25 loss per unit if sold after the season is over. The following discrete probability distribution has been estimated for the season's demand.

-Use the information in Scenario C.2. What is the payoff with an order quantity (Q) of 80 units if the demand (D) is 60 units?

A) less than or equal to $3,000
B) greater than $3,000 but less than or equal to $4,000
C) greater than $4,000 but less than or equal to $5,000
D) greater than $5,000