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Famous Albert prides himself on being the Cookie King of the West. Small freshly baked cookies are the specialty of his shop. Famous Albert has
- Famous Albert prides himself on being the Cookie King of the West. Small freshly baked cookies are the specialty of his shop. Famous Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, he estimates demand for cookies as
Demand | Probability of Demand |
1800Dozen | 0.05 |
2000 | 0.10 |
2200 | 0.20 |
2400 | 0.30 |
2600 | 0.20 |
2800 | 0.10 |
3000 | 0.05 |
Each dozen sells for $0.69 and cost $0.49, which includes handling and transportation. Cookies that are not sold at the end of the day are reduced to $0.29 and sold the following day as day-old merchandise.
Construct a table showing the profit or losses for each possible quantity.
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