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Newsvendor Order Quantity: Bakery A sells bread for $ 3 per loaf that costs $ 1 per loaf to make. Bakery A gives a 7

Newsvendor Order Quantity: Bakery A sells bread for $3 per loaf that costs $1 per loaf to make. Bakery A gives a 75% discount for its bread at the end of the day. If the loaf is out of stock, customers will buy another type of bread loaf from Bakery A (that type of loaf is always available and costs 75 cents per loaf to make) for $2.50 per loaf. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 50. What order quantity, Q, value maximizes expected profit for Bakery A?

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