Kyle Store Sells K2 Skis -Use the Information in Scenario D

question 6

Multiple Choice

Kyle store sells K2 skis. The store makes a $200 profit per unit sold during the ski season, but it should take a $50 loss per unit if sold after the season is over. The following discrete probability distribution has been estimated for the season's demand.
$$\begin{array} { | c | c | } \hline \text { Demand } ( D ) & \text { Demand Probability } \\\hline 10 & 0.1 \\20 & 0.3 \\30 & 0.3 \\40 & 0.2 \\50 & 0.1 \\\hline\end{array}$$
-Use the information in Scenario D.2.What is the payoff with an order quantity (Q) of 40 units if the demand (D) is 30 units?

• A) Less than or equal to $2,000
• B) Greater than $2,000 but less than or equal to $4,000
• C) Greater than $4,000 but less than or equal to $6,000
• D) Greater than $6,000

Recognize the significance of the standard normal distribution and its characteristics.

Understand the role of HRM practices in achieving high organizational performance.

Identify and analyze the components of effective job design for employee empowerment.

Recognize the importance of appropriate selection methods in building a high-performance workforce.

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Definitions:

Target Income

The profit amount that a company aims to achieve within a specific period.

Required Sales

The volume of sales necessary to achieve a specific financial objective, such as covering costs or reaching a target profit.

Contribution Margin

It is the amount by which sales revenue exceeds variable costs. It contributes towards covering fixed costs and generating profit.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.