Problem $11-11($Algo$)$

Famous Albert prides himself on being the Cookle King of the West. Small, freshly baked cookies are the specialty of his shop. Famous

Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, he

estimates demand for cookles as

Each dozen sells for $$0\mathrm{.}72$ and costs $$0\mathrm{.}51,$ which Includes handling and transportation. Cookles that are not sold at the end of the day

are reduced to $$0\mathrm{.}26$ and sold the following day as day$-$old merchandise.

a$.$ Compute the expected profit or loss for each cookle making decision quantity.

Note: Round your answer to the nearest whole number. Enter expected losses with a negatlve sign.

b$.$ Based on your answers to part a$.,$ what is the optimal number of cookles to make?

Optimal number of cookies

dozen

c$.$ By using marginal analysis, what is the optimal number of cookies to make?

Optimal number of cookies