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Each case costs the grocer $ 1 0 and sells for $ 1 2 . Unsold cases are sold to a local farmer ( who
Each case costs the grocer $ and sells for $ Unsold cases are sold to a local farmer who mixes the milk with feed for livestock for $ per case. If there is a shortage, the grocer considers the cost of customer ill will and lost profit to be $ per case. The grocer must decide how many cases of milk to order each week.
How many cases of milk to order each week if the grocer follows the expected monetary value criterion?
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