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Management is attempting to determine its current average stockout costs based on it's 3 categories of customers: Loyal, Ambivalent (may return), and Lost. Based on

Management is attempting to determine its current average stockout costs based on it's 3 categories of customers: Loyal, Ambivalent (may return), and Lost. Based on the historical losses and a frequency analysis of the customer data, the following table was developed:

Category Loss Probability
Loyal $0 0.12
Ambivalent $53 0.37
Lost $977 0.51

Determine the average cost of a stockout. Round to the nearest penny, if applicable. Do not enter the $ symbol.

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