The bookstore sells promotional booklets. You can buy the booklets from your supplier in bundles of...

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The bookstore sells promotional booklets. You can buy thebooklets from your supplier in bundles of one dozen each. Eachbooklet in the bundle costs $65, and will sell for $90. Bookletsunsold by specific event will be clearance priced at $20. Thebookstore estimates that demand patterns will follow the tablebelow. How many bundles should be purchased based on EMVcriteria?
Demand level
Probability
1 bundle
10 percent
2 bundles
30 percent
3 bundles
50 percent
4 bundles
10 percent

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Profit Selling Price Cost Price 9012 6512 1080 780 300Loss Cost Price Clearance Price 6512 2012 780 240540PayofftableDemandSupplyA1 1bundle A22 bundlesA33 bundlesA44 bundles1 bundle300300 540 240300 2540 300 1080 780300 3540 300 1620 13202 bundles3002300 600600 540 60600 2540 600 See Answer

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Demand level	Probability
1 bundle	10 percent
2 bundles	30 percent
3 bundles	50 percent
4 bundles	10 percent