What is the retailer optimal expected profit

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Prior to the winter season, Fashionables, a franchisee of The Limited, orders a particular sweater from The Limited at the wholesale price of $40 per sweater. Fashionables plans to sell each sweater at the retail price of $80. At the end of the season Fashionables can sell all of the unsold sweaters at the price of $20 each. Demand for the sweater during the season is normally distributed with an average of 300 units and a standard deviation of 100 units. If Fashionables order its optimal quantity, what is the retailer’s optimal expected profit?

Reference no: EM131789151

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