The local office of tourism sells souvenir calendars. sue, Ask an Expert

Finance

The local Office of Tourism sells souvenir calendars. Sue, the head of the office, needs to order these calendars in advance of the main tourist season. Based on past seasons, Sue has determined the probability of selling different quantities of the calendars for a particular tourist season.

Demand for Calendars Probability of Demand

75,000 0.15

80,000 0.25

85,000 0.30

90,000 0.20

95,000 0.10

The Office of Tourism sells the calendars for $12.95 each. The calendars cost Sue $5 each. The salvage value is estimated to be $0.50 per unsold calendar.

Determine how many calendars Sue should order to maximize expected profits

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M942059

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Question - so far things have gone well with dr bueller

Question - So far, things have gone well with Dr. Bueller. Before you wrap up your meetings and he begins investing, you decide to spend a little time sharing information with him about using derivatives to manage risk a ...

Yu are given the following quotesus dollarbrazilian real

You are given the following quotes: U.S. dollar/Brazilian Real = 0.3459 U.S. dollar/Australian Dollar = 0.7567 U.S dollar/Chinese Yuan = 0.1962 What is the Brazilian Real/Australian Dollar cross rate? Enter your answer r ...

If you deposit 870 at 2400annual interest compounded daily

If you deposit $870 at 24.00%annual interest compounded daily, how much money will be in the account after 24 years? (Assume that there are 364 days in a year) Suppose you deposit $194 today, $660 in one year, and $615 i ...

Calculation of individual costs and wacc lang enterprises

Calculation of individual costs and WACC Lang Enterprises is interested in measur-ing its overall cost of capital. Current investigation has gathered the following data. The firm is in the 21% tax bracket. Debt The firm ...

Tom decides to open a small italian wine store in an

Tom decides to open a small Italian wine store in an affluent South Florida neighborhood. He will be an absentee owner and has hired Vinnie as the store manager. He has agreed to pay Vinnie a fixed salary of $75,000 per ...

What circumstance would project evaluation methods be used

What circumstance would project evaluation methods be used and Define and explain the pros and cons of NPV, IRR, and Payback methods?

Able corporation has project a with the following cash

Able Corporation has Project A with the following cash flows and a 6.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows. What is the net present value? Year Cash flow 0 ...

Financial time series and forecasting assignment -the goal

Financial Time Series and Forecasting Assignment - The goal of this assignment is to build and interpret factor models and to compare a range of models/methods for forecasting, in the context of a dynamic portfolio alloc ...

A firm has sales of 1220 net income of 226 net fixed assets

A firm has sales of $1,220, net income of $226, net fixed assets of $544, and current assets of $300. The firm has $101 in inventory. What is the common-size statement value of inventory?

When when is it appropriate to use the wac as the discount

When when is it appropriate to use the wac as the discount rate in capital budgeting

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert