Question

Lawson's department store faces a buying decision for a seasonal product for which demand can be high, medium, or low. the purchaser for lawson's can order one, two, or three lots of the product before the season begins but cannot reorder later. profit projections (in thousands of dollars) are shown

Answer 1

I believe that based on the information given , Lawson's should purchase three lots. This will ensure that they are able to make a profit. If they do not have the product they can not profit from it. If they have too much product, they can run a sale to break even after the season.