Scenario C.3 Consider an Item with the Following Discrete Demand Distribution for Distribution

Multiple Choice

Scenario C.3
Consider an item with the following discrete demand distribution for a one-period inventory decision.

This item experiences a seasonal demand pattern. A profit of $15 per unit is made if the item is sold in season, but a loss of $10 per unit is incurred if the item is sold after the season is over.
-Use the information in Scenario C.3. What is the payoff when 40 units are ordered but a demand of 50 materializes?

A) $150
B) $300
C) $450
D) $600