Question: In a single period inventory model, we need to decide between stocking 5 units versus 6 units. The probability of demand being 5 or less

In a single period inventory model, we need to decide between stocking 5 units versus 6 units. The probability of demand being 5 or less is 0.6. The cost of each unit is 29 dollars, selling price is 66 dollars, and salvage price is 10 dollars. What is the expected value of the benefit of ordering that extra unit after 5?

(Provide one decimal place)

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