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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › how to construct the payoff table?
Product ‘Hale’ is a highly perishable commodity which can be sold on the retail market for
$20 per case or for animal food at $1 per case. ‘Hale’ costs $10 per case from the wholesale
market and is only suitable for sale at the retail market for up to 24 hours after purchase.
Orders for ‘Hale’ must be placed in advance each day.
Rebecca, a market stall owner, has kept the following records of sales of the ‘Hale’ over the
past 50 days:
Daily sales Days sold
10 units 15
20 units 25
30 units 10
Required:
(a) Prepare a summary payoff table that shows the forecast value of profits or losses
earned by Rebecca for each possible outcome on the retail market.