Edwin operates a small bakery stand on weekends. The cost to purchase the ingredients is $9 per bread and the selling price is $12 per bread . Unsold breads are discarded at the need of the weekend. If using the news vendor model to determine how many breads to purchase, what is the overage cost in dollars?

Answer rating: 100% (QA)

The newsvendor model is used to determine the optimal order quantity for perishable goods like the b... View the full answer