The selling price of a particular food item is $20 per packet. The cost to the store is $14 per packet. The unsold packets must be salvaged at the end of the day for $3 per packet. The store manager believes that the shortage cost is $2 per packet. How many packets should the store buy each day to maximize profit if demand is:

Normal with mean 400 and standard deviation 60?

Uniform with a lower limit to be 200 and an upper limit to be 600?

Demand for the last 400 days was as shown below

Demand 200 250 350 500

Frequency 80 200 80 40

Calculate the average daily profit.

Answer rating: 100% (QA)

Normal with mean 400 and standard deviation 60 The st... View the full answer