# 22.11 the owner of a clothing store must decide how many men’s

22.11 The owner of a clothing store must decide how many men’s   shirts to order for the new season. For a particular type of shirt, she must   order in quantities of 100 shirts. If she orders 100 shirts, her cost is \$10   per shirt; if she orders 200 shirts, her cost is \$9 per shirt; and if she   orders 300 or more shirts, her cost is \$8.50 per shirt. Her selling price for   the shirt is \$12, but any shirts that remain unsold at the end of the season   are sold at her famous “half-price, end-of-season sale.’’ For the sake of   simplicity, she is willing to assume that the demand for this type of shirt   will be 100, 150, 200, or 250 shirts. Of course, she cannot sell more shirts   than she stocks. She is also willing to assume that she will suffer no loss   of   goodwill   among her customers if she under stocks and the customers cannot buy all the   shirts they want. Furthermore, she must place her order today for the entire   season; she cannot wait to see how the demand is running for this type of   shirt.   a. Construct   the payoff table to help the owner decide how many shirts to order.   b. Set up   the opportunity loss table.   c. Draw the   decision tree.