Question: Question 7 3 pts USE THIS INFORMATION TO ANSWER QUESTIONS 6 AND 7 A small grocery store sells fresh produce that it obtains daily from

Question 7 3 pts USE THIS INFORMATION TO ANSWER

Question 7 3 pts USE THIS INFORMATION TO ANSWER QUESTIONS 6 AND 7 A small grocery store sells fresh produce that it obtains daily from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 40 quarts per day and a standard deviation of 6 quarts per day. The marginal cost of fresh strawberries is $0.35 per quart. The grocer determines that the optimal order quantity is 49 quarts per day. What is the marginal benefit (i.e., cost of shortage) at the optimal order quantity? Please provide your answer in decimal format to two decimal places and without the dollar sign (e.g., 1.15, 0.75. 0.20)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!