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Every day, Beignet@TU order bags of beignets before the store opens from off-campus and that is their supply for the whole day. The number
Every day, Beignet@TU order bags of beignets before the store opens from off-campus and that is their supply for the whole day. The number of bags they order is called the order size. Suppose transporting the beignets to campus incurs a fixed cost of $60 for any order. Additionally, there is a variable cost of $7.5 per bag of beignets ordered. Suppose, before 7pm, they sell at a full price of $9 per bag. The full-price demand, which is the demand before 7pm and denote as D, is unknown. After 7pm, there will be no more full-price demand. However, a bar next to TU will purchase all the unsold bags of beignets at a discount price $6.5 per bag. This is called the discount demand. Suppose that based on market research, the full-price demand is equally likely to be 70, 100, 120, 150. Suppose further, Beignet@TU can order at one of the following sizes: 30, 60, 90 120, 150, 180. What is the optimal expected profit [Select] 90.25 67.50 60.50 None of the above 76.25
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