Answer to Question #128501 in Math for King

Question

Orders for clothing to cater for the coming festive season must be placed a month earlier. The cost per unit for a new fashion dress is RM30 while the anticipated selling price is RM60. Dresses that are not sold during the festive season can be sold for RM25 to a discount store. Demand is projected to be 60, 70, or 80 units. There is 50% chance that the demand will be 60 units, a 30% chance that the demand is 70 units, and a 20% chance that the demand will be 80 units.
i. Draw a payoff table.
ii. If the company decides to use the expected monetary criterion (EMV), how many units should be ordered.
iii. Use the data and construct an expected opportunity loss (EOL) table. Determine the best alternative.

Answer 1

Dear King, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order