Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trigonometry A Unit Circle Approach

Authors: Michael Sullivan

10th Edition

0321999347, 9780321999344

More Books

Students also viewed these Mathematics questions

Question

discuss ways of measuring sickness absence and sickness presence;

Answered: 1 week ago

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago