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 the following: DEMAND 1,800 dozen 2,000 2,200 2,400 2,600 2,800 3,000 PROBABILITY OF DEMAND 0.04 0.10 0.28 0.26 0.15 Each dozen sells for $0.65 and costs $0.49, which includes handling and transportation. Cookies that are not sold at the end of the day are reduced to $0.30 and sold the following day as day-old merchandise. Cookies Baked (Dozen) a. Compute the expected profit or loss for each cookie making decision quantity. (Round your answers to 2 decimal places. Enter expected losses with a negative sign.) 1,800 2,000 2,200 2,400 2,600 2,800 3,000 0.03 0.14 Probability of Demand 0.04 0.10 0.28 0.26 0.15 0.03 0.14 Expected Profit/Loss

Famous Albert prides himself on being the Cookle 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 the following: Each dozen selfs for $0.65 and costs $0.49, which includes handling and transportation. Cookies that are not sold at the end of the day are reduced to $0.30 and sold the following doy as day-old merchandise. a. Compute the expected profit or loss for each cookle making decision quantily. (Round your answers to 2 decimal places. Enter expected losses with a negative sign.)