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Please provide correct answer, i posted this before and got the wrong answer. The cafeteria ordered too many scones with not enough demand so what
Please provide correct answer, i posted this before and got the wrong answer. The cafeteria ordered too many scones with not enough demand so what is the profit if they had excess and had to sell the rest for .50 after 3PM
The cafeteria offers scones for $1.5 each from 8 am to 3pm. The scones are ordered from their supplier at the start of each day and delivered before the store opens. The supplier charges 75 cents per scone. If at 3pm, some scones are left unsold, the cafeteria people sell off the remaining scones for 50 cents each. Assume that all leftover scones are always sold by 4 pm when the cafeteria closes. If a customer asks for a scone before 3pm but the cafeteria has run out, the customer always buys a bag of chips for $1 instead (after 3pm, the customer does not buy anything instead). Assume the chips are always in stock and they are purchased from the same supplier for 40 cents each. Demand for scones before 3pm at the cafeteria is variable but can only take values between 40 and 50 , with probabilities given in the following table. A. Yesterday, the cafeteria ordered 45 scones, and 40 customers came wanting to buy a scone between 8am and 3pm. What was their profit, including, if any, the profit on chips sold instead of sconesStep by Step Solution
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