Consider a retailer who sells UNC and Duke T-shirts. Their highest sales this fa
ID: 445037 • Letter: C
Question
Consider a retailer who sells UNC and Duke T-shirts. Their highest sales this fall will occur on the day of the UNC-Duke football game and they have special T-shirts made for that game with the date of the game (November 7) printed on the T-shirts. Due to the manufacturing and delivery lead times, the company must place orders for the T-shirts by mid-October. The company believes that the demand for UNC-logoed T-shirts will be normally distributed with mean 800 and standard deviation 300. Similarly the demand for Duke-logoed T-shirts is forecasted to be normally distributed with mean 500 and standard deviation 100. Additional cost and revenue data is provided in the table below.
School logo
Retail price
Wholesale price (the price at which the retailer buys a T-shirt)
Salvage value
UNC
$20
$8
$5
Duke
$20
$8
$2
(a) How many of each school’s T-shirts should the company order?
School logo
Retail price
Wholesale price (the price at which the retailer buys a T-shirt)
Salvage value
UNC
$20
$8
$5
Duke
$20
$8
$2
Explanation / Answer
the UNC t-shirts - 900 should be order
Duke t-shirts- 600 should be order