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

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