Hugh handmade horrendous hamstring stretchers

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Reference no: EM132247072

Hugh's Handmade Horrendous Hamstring Stretchers are only sold during the short track season in Billings, Montana. In accordance with local regulations, the HHHHS is biodegradable and lasts only one season. It cannot be inventoried over the Montana winter. Hugh can only make the HHHHS in one batch at the beginning of the season. Historically, demand for the HHHHS is uniformly distributed between 100 and 300. The HHHHS costs $5.00 to purchase fresh, and can be sold for S10.00. It costs S1.00 to dump an unsold HHHHS at the end of the season with the Billings Biodegradable Dumping Boutique. If Hugh runs out of the HHHHS, he estimates the goodwill loss to be $4.00 per unsatisfied customer. How many HHHHS's should Hugh make in his yearly production run? What is Hugh's expected profit?

Reference no: EM132247072

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