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Primarily for the halloween season

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Pony Express Creations Inc. is a manufacturer of party hats, primarily for the Halloween season. One of their popular products is the Elvis wig. The Elvis wig is produced in China, so Pony Express must make a single order well in advance of the upcoming season. Ryan, the owner of Pony Express, expects demand to be normally distributed with mean 20,000 and standard deviation 5,000. The Elvis wig is sold to retailers for $25, but Pony Express pays wholesale price of $10. Leftover inventory can be sold to discounters for $2. What order quantity maximizes Pony Express's expected profit?

Reference no: EM133455423

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