Question
Amelie, the owner of La Petite Croissanterie, is trying to determine how many croissants to bake everyday. Based on her observations the demand for croissants
Amelie, the owner of La Petite Croissanterie, is trying to determine how many croissants to bake everyday. Based on her observations the demand for croissants follow a normal distribution with mean 14 and standard deviation of 2. It costs $9 to bake a tray of 5 croissants, and each croissant is sold for $4. Any leftover croissants are sold for a discount price of $1 in the evenings. If the croissants are sold out, there will be a loss of goodwill that is worth 50 cents on top of the lost opportunity to make a profit from the sale. Determine the optimal number of trays to bake everyday to maximise the profits. Hint: Amelie can bake at most 10 trays a day
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