700 A deli shop serves very popular hot and spicy pies every day. The deli shop purchases 300 pies from its supplier on a daily basis for $2.50 each and sells them for $5.50 each. Unsold pies at the end of the day will be put for quick sale at $1.00 each, and they are always sold out. The past daily sales of the pies have been recorded using the frequency distribution as below. Demand 100 200 300 400 500 600 Probability 5% 10% 20% 30% 20% 10% 5% Answer the following questions, and show the calculations clearly: a. Calculate the expected revenue and profit of the bakery (2 marks) b. Based on the daily sales record, how many pies should the deli shop order from the supplier on a daily basis to minimise the total costs of overestimating and underestimating demands? Show in a table the costs of overestimating and underestimating demand that leads to your answer. Confirm your answer using the cumulative probability method (2 marks) c. Calculate the expected revenue and profit for the amount of pies sold - as determined from question b) above. Confirm your answer by showing that the expected revenue is higher than those for 100 units above and below the amount of pies in question b). (2 marks) 700 A deli shop serves very popular hot and spicy pies every day. The deli shop purchases 300 pies from its supplier on a daily basis for $2.50 each and sells them for $5.50 each. Unsold pies at the end of the day will be put for quick sale at $1.00 each, and they are always sold out. The past daily sales of the pies have been recorded using the frequency distribution as below. Demand 100 200 300 400 500 600 Probability 5% 10% 20% 30% 20% 10% 5% Answer the following questions, and show the calculations clearly: a. Calculate the expected revenue and profit of the bakery (2 marks) b. Based on the daily sales record, how many pies should the deli shop order from the supplier on a daily basis to minimise the total costs of overestimating and underestimating demands? Show in a table the costs of overestimating and underestimating demand that leads to your answer. Confirm your answer using the cumulative probability method (2 marks) c. Calculate the expected revenue and profit for the amount of pies sold - as determined from question b) above. Confirm your answer by showing that the expected revenue is higher than those for 100 units above and below the amount of pies in question b). (2 marks)