Newsvendor Expected Profit - Quantity Discount:Goop Inc. needs to order a raw material to make a special polymer.The demand for the polymer is forecastto be Normally distributed with a mean of 250 gallons and a standard deviation of 80 gallons.Goop sells the polymer for $25 per gallon.Goop's purchases raw material for $10 per gallon and Goop must spend $5 per gallon to dispose of all unused raw material due to government regulations.(Assume one gallon of raw material yields one gallon of polymer with no extra cost.) If demand is more than Goop can make, then Goop sells only what they made and the rest of the demand is lost.

Suppose Goop has solved a news vendor problem to determine the profit maximizing amount of raw material to order from its supplier.Then the supplier contacts Goop and offers a quantity discount: That is, if Goop buys at least 300 gallons of raw material, the supplier will provide a 10% discount on all units purchased (so the raw material purchase price would be reduced to $9 per gallon). Which statement below applies best, assuming there are no other changes besides the unit purchase price?

Note: A spreadsheet News Vendor calculator could be useful to answer this question.