Question: The expected profit is calculated according to this formula: Expected Profit = ( profit per unit sold ) ( number of units sold ) +
The expected profit is calculated according to this formula:
Expected Profit profit per unit soldnumber of units soldloss per unsold unitnumber of unsold units
Specialty Toy's profit per unit sold is $ $ $ and their loss per unsold unit is $ $$ If Specialty Toys orders units and sells only before the holidays, their expected profit is:
$$ $
a What is the expected profit if all units are sold?
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b Suppose there is demand for units, but Specialty Toys orders units? What is the expected profit?
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c Suppose there is demand for units, but Specialty Toys orders units? What is the expected profit?
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