What is the expected profit for one month

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Reference no: EM13187441

The Paris Bakery has decided to bake 30 batches of its famous beignets at the beginning of the day. The store has determined that daily demand will follow the distribution shown in the following table:

Demand	Probability
15	0.08
20	0.12
25	0.25
30	0.20
35	0.20
40	0.15

Each batch cost the Paris Bakery $50 and cxan be sold for $100. The Paris Bakery can sell any unsold batches for $25 the next day.

1. What is the Expected profit for one month (25 days) of operation?

2. Investigate the profitability that would result if instead of baking 30 batches each morning, they bake 25, 30, 35, or 40 batches. Which would you recommend and why?

Reference no: EM13187441

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