User Account

All Pages

What is the expected profit if jean and jill decide

Assignment Help Accounting Basics
Reference no: EM13981074

Jean and Jill's Bakery bake fresh pies every morning. The daily demand for Jean and Jill's apple pies is a random variable with (discrete) distribution, based on past experience, given by:
Demand 5 10 15 20 25 30
Probability 10% 20% 25% 25% 15% 5%

Each apple pie costs Jean and Jill $15 to make and is sold for $20. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for $12 each. Assume no goodwill cost. 
Demand Probability
5 .......... 0.1
10 .......... 0.2
15 .......... 0.25
20 .......... 0.25
25 .......... 0.15
30 .......... 0.05

a) Based on the demand distribution above, how many apple pies should Jean and Jill bake each day to maximize her expected profit?

b) What is the expected profit if Jean and Jill decide to order the profit maximizing (news vendor) quantity?

Reference no: EM13981074

Questions Cloud

The liabilities are accounts payable : Prepare a balance sheet for Mullen's Hardware for December 31 of last year. The company assets are cash $15,000, accounts receivable $21,000, and merchandise inventory $95,000. The liabilities are accounts payable $12,000 and wages payable $17,000. T..
Apply deontological or utilitarian theory : Formulated a concrete ethical question, take a position on that topic, and identified a reason supporting and a reason opposing that position. discussed either deontological or utilitarian theory, applied that theory to the question, and raised a ..
Long-run effects on output and the price level : For each of the following events, graph and explain the short-run & long-run effects on output and the price level, assuming policymakers take no action.
Events shifts the short-run aggregate-supply curve : Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, use a diagram to illustrate the effect on the economy.
What is the expected profit if jean and jill decide : Based on the demand distribution above, how many apple pies should Jean and Jill bake each day to maximize her expected profit?
How does automated system enhance relevance of information : How does the automated system enhance the relevance of the information provided
Sources of funding and monitoring of subjects : What topic you chose and why (This may have personal significance to you or it may be a topic of particular interest that you have seen in the news)
Why is it a vital component of macroeconomics : What is the federal funds rate? Why is it a vital component of macroeconomics? How does the Federal Reserve influence the federal funds rate? Graphically illustrate the impact of an FOMC open market operation that aims to reduce the federal funds rat..
How high could you raise a book with the given energy : How high could you raise a 1 kg book with this energy? What temperature difference between the outside and inside of an average window would equate the sound energy.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd