I am wondering if you could help Compute the projected profit for the four order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.
some background info...Members of the management team suggested order quantities of 15,000, 18,000, 24,000 or 28,000 units.Novelty expects to sell Weather Teddy for $25 based on a cost of $16 per unit. If inventory remains after the holiday season, Novelty will sell all surplus inventories for $5 per unit. Novelty’s sales forecaster predicted the demand for Weather Teddy with an expected value of 20,000 units and a standard deviation of 5,000 units.