Question: Every year in early October Steven King buys pumpkins of one size from a farmer in Maine and then hires an artist to carve bewitching

Every year in early October Steven King buys pumpkins of one size from a farmer in Maine and then hires an artist to carve bewitching faces in them. He then tries to sell them at his produce stand in a public market in Boston. The farmer charges Steven $2.00 per pumpkin and the artist is paid $3.00 per carved pumpkin. Steven sells a carved pumpkin for $8.00. Any pumpkins not sold by 5:00 p.m. on Halloween are donated to Steven's favorite children's hospital. Steven pays the artist $.5 per pumpkin to rush the pumpkins to the hospital for the youngsters to enjoy. Steven estimates the demand for his pumpkins this season to be uniformly distributed within a range of 40 to 80.
a. How many pumpkins should Steven have available for sale?
b. Based on your answer to (a), what is the probability that Steven will be short pumpkins?

Step by Step Solution

★★★★★

3.30 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Given Cost of cash pumpkin 200 Cost of caved 300 Selling price f ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-F-D-F(633).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Sub-limitation of small iodine spheres in still air. A sphere of iodine, 1 cm in diameter, is placed in still air at 40C and 747 mm Hg pressure. At this temperature the vapor pressure of iodine is...

Enviro Facilities Inc. (EFI) is a large, diversified Canadian-controlled private company with several Canadian and U.S. subsidiaries, operating mainly in the waste management and disposal industry....

On October 21, Rand & Brink, a CPA firm, was retained by Suncraft Appliance Corporation to perform an audit for the year ended December 31. A month later, James Minor, president of the corporation,...

Steven B. (age 42) and Debra S. (age 41) Marshall are married and live at 426 East Twin Oaks Road, Sioux Falls, SD 57105. Steven is the regional manager for a restaurant chain (Moveable Feast), and...

(10 points) Every year in early October Steven King buys pumpkins of one size from a farmer in Maine and then hires an artist to carve bewitching faces in them. He then tries to sell them at his...

A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory control policy for its 1-irons, which have the following characteristics: Mean demand =2000...

Problem 2: (40 points) Every year in early October Steven King buys pumpkins of one size from a farmer in Maine and then hires an artist to carve bewitching faces in them. He then tries to sell them...

Pritchett Company reported the following year-end data: $ 20,700 7,300 Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities. 11,600...

Given (a) Use Gaussian elimination with partial pivoting to solve Ax = b. (b) Write the permutation matrix P that corresponds to the pivoting strategy in part (a) and determine the LU factorization...

What is the net icome? Will dividends appear on the income statement

Brad's BBQ reported sales of $735,000 and net income of $28,000. Brad's also reported ending total assets of $496,000 and beginning total assets of $389,000. Required: Calculate the return on assets,...

Abbott Landscaping purchased a tractor at a cost of $ 42,000 and sold it three years later for $ 21,600. Abbott recorded depreciation using the straight- line method, a five- year service life, and a...

On January 1, 2015, Weaver Corporation purchased a patent for $ 237,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January...

Public transportation and the automobile are two methods an employee can use to get to work each day. Samples of times recorded for each method are shown. Times are in minutes. a. Compute the sample...

The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new motion pictures each year, and the financial success of each motion picture varies...

1. Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 25 pizzas at $10 each Rent of apartment, $600 per month...

An electrical firm manufactures light bulbs that have a lifetime that is approximately normally distributed with a mean of 800 hours and a standard deviation of 40 hours. Test the hypothesis that p =...

A random sample of 64 bags of white Cheddar popcorn weighed, on average, 5.23 ounces with a standard deviation of 0.24 ounces. Test the hypothesis that p = 5.5 ounces against the alternative...

In a research report by Richard H. Weindruch of the UCLA Medical School, it is claimed that mice with an average life span of 32 months will live to be about 40 months old when 40% of the calories in...

With work urses/41008/quizzes/127207/take AHS Hall Pass Sign. Desmos | Graphing. Google Docs 5 ASL M Login Pre-Calc @ Plato In a small, rural community in West Virginia, those adults seeking work or...

Q4: [25] Music Streaming When customers subscribe to a music streaming service, they have 2 options (a) a free service b) a premium service costing $12/month. Based on customer data from the most...

Below is the question in screenshot. Tensile strength tests were carried out on two different grades of wire rod resulting in the accompanying data: Sa | St d rd Grade SampleSize Sample Mean (kg/mm2]...