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A newsstand receives Its weekly order of View magazine on Monday and cannot reorder during the week. Each copy costs $1.80 and sells for $3.00.

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A newsstand receives Its weekly order of View magazine on Monday and cannot reorder during the week. Each copy costs $1.80 and sells for $3.00. Unsold copies may be returned the following week for a $1.20 rebate. When the newsstand runs out of coples, the owner knows from experience that customers will purchase View magazine elsewhere for an average of two weeks; therefore, the estimated goodwill loss from stock-outs is $2.40 per unsatisfied customer. Demand has been remarkably constant, ranging from 7 to 10 coples per week, as shown below: Demand (in copies) 7 8 9 Probability 9.49 Required: 1-a. Determine the optimal number of coples to keep In Inventory. (Round your answers to 2 decimal places.) Demand (in copies) 7 9 10 EMV 1-b. Determine the expected profit (Round your answer to 2 decimal places.) Expected profit

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