Explain how many cakes should be prepared to maximize profit

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Q. A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes price $33 each to make also they sell for $60 each. Unsold cakes are reduced to half-price on Monday also typically one-third of those are sold. Any which remain are donated to a nearby senior center. Analysis of recent demand resulted in the subsequent table:

Demand 0 1 2 3

Probability .15 .35 .30 .20

Explain how many cakes should be prepared to maximize expected profit?

Reference no: EM1375257

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