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Fruit tart is one of the favorites at Hills Cafe. Every morning, the caf manager orders fresh tarts from Prairie Bakery to be sold at
Fruit tart is one of the favorites at Hills Cafe. Every morning, the café manager orders fresh tarts from Prairie Bakery to be sold at Hills during the day. Manager buys a tart at $5 and sells it at a price of $10. Daily fruit tart demand is normally distributed with a mean of 400 tarts and a standard deviation of 100. Leftover tarts at the end of the day will be sold at a discounted price of $2/tart. Note: The questions in sections (a) – (e) below are independent. That is, in each section use the information given above unless otherwise is stated in that specific section. For instance, in section (b) demand information is given as uniform distribution. In this section use uniform demand distribution. However, in the remaining sections, use the demand information of normal distribution as given in the original question above.
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