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please help thanks Gina starts a new home-based bakery business to sell hand-made toasts and biscuits. Each toast is sold at $6 and costs $2
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Gina starts a new home-based bakery business to sell hand-made toasts and biscuits. Each toast is sold at $6 and costs $2 to make. If she has any unsold toasts after 9pm, they will be offered at $1 per toast until all remaining toasts are sold. Based on her experience, the daily demand for the toasts can only be 40,60,80,100, or 120 . The probabilities for different demand is shown below. Table 1: Probabilities of Demand for Toasts (a) What is the probability when demand is 80 ? Calculate the number of toasts Gina should make to maximise the expected profit of selling toasts. If she decides to donate, all the toasts left after 9pm, to a food bank, for free, how many toasts should she make to maximise the expected profit? (12 marks) (b) Would you recommend Gina to adopt a pull system to manage its inventory of the flour, one of their main baking ingredient? Explain with supporting reasons. (7 marks) thanks
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