A small grocery store sells fresh produce, which it obtains from local farmers. During the strawberry season, demand for fresh strawberries at the store can be reasonably approximated using a Normal distribution with a mean of 40 litres per day and a standard deviation of 6 litres per day. Excess cost is 35 cents per litre. The grocer orders 49 litres per day.
a. What is the implied cost of shortage per litre?
b. Why might this be a reasonable figure?