Question
Burger Prince buys top-grade ground beef for $.90 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover
Burger Prince buys top-grade ground beef for $.90 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 60 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 70 cents each. Labor, overhead, meat, buns, and condiments cost 60 cents per burger. Demand is normally distributed with a mean of 389 pounds per day and a standard deviation of 34 pounds per day. What daily order quantity is optimal? (Hint: Shortage cost must be in dollars per pound.) (Round your answer to 1 decimal place.)Table
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