Each month, a well-known drug manufacturing company produces a specific type of patented drug that relieves headaches. It costs the company$0.70to produce a single dose, and each dose is sold for$2.70. All unsold/unused doses must be disposed of in an environmentally friendly manner. It costs the drug manufacturing company$0.09to dispose of each unused/unsold dose. Over time, the drug company has developed a good understanding of the probability for specific demand of the drug in the marketplace and notes the following probabilities. Each month, there is a 50% chance that demand will be 1.2 million units, a 30% chance that demand will be 1.5 million units, and a 20% chance that demand will be 1.7 million units.

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