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

question 36

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

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Definitions:

Major Premise

A fundamental statement or proposition that forms the first basis of a logical argument or syllogism.

Minor Premise

In logic, a statement that, together with the major premise, leads to a conclusion in a syllogistic argument.

Conclusion

The final part of a sales presentation or negotiation, where the outcome is summarized and the next steps are outlined.

Conviction Stage

A phase in the buying process where potential customers develop a firm belief in the value and benefits of a product, making them more likely to purchase.