7) The campus bookstore sells highlighters that it purchases bythe case. Cost per case, including shipping and handling, is $200.Revenue per case is $350. Any cases unsold will be discounted andsold at $175. The bookstore has estimated that demand will followthe pattern below

Demand level	Probability
10 cases	20 percent
11 cases	20 percent
12 cases	40 percent
13 cases	15 percent
14 cases	5 percent

a. Construct the bookstore's payoff table.

b. How many cases should the bookstore stock in order tomaximize expected profit?

c. How would your answer differ if the clearance price were not$175 per case but $225 per case? (It is not necessary to re-solvethe problem to answer this.)