Search for question
Question

QUESTION 24Beyer's sells winter coats, with most of the sales being made in the months of October, November, and December. Beyer's makes a one-time purchase of coats in September at

a cost of $40 each and sells each coat tor S70. Any coats unsold at the end of December are marked down to $30 and sold in a special New Year's clearance sale. Any unsold coats always sell during the clearance sale. The following is the number of sales of coats for the past 10 years: 80, 100, 80, 110, 60, 90, 80, 80, 70, 90.Assume the demand for winter coats follows a normal distribution with mean and variance as previously calculated. Determine the optimal number of coats for Beyer's to order each September. (Round to the nearest integer)

Fig: 1