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Question 5 : A foundry has received an order of 2 0 custom - designed castings. The casting process costs $ 7 0 0 per

Question 5: A foundry has received an order of 20 custom-designed castings. The casting process costs $700 per unit scheduled. If a casting is good then it is machined to specifications at an added cost of $400 per unit .If a casting is not sold, it has a recycle value of $200. The customer has indicated a willingness to pay $2000 per casting for 20 acceptable castings. The customer also agreed to pay $1500 each for one or two additional castings. However the customer is not willing to purchase fewer than 20 castings and not willing to pay more than 22 castings. Based on the historical data the following probability distribution have been estimated.
\table[[\table[[- Grood],[Castings]],Number of Castings Scheduled],[20,21,22,23,24,25,26,27,28,29,30],[12,0.10,0.05,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00],[13,0.10,0.10,0.05,0.05,0.05,0.05,0.00,0.00,0.00,0.00,0.00],[14,0.10,0.10,0.10,0.05,0.05,0.05,0.05,0.00,0.00,0.00,0.00],[15,0.10,0.10,0.10,0.10,0.05,0.05,0.05,0.00,0.00,0.00,0.00],[16,0.10,0.10,0.10,0.10,0.05,0.05,0.05,0.05,0.00,0.00,0.00],[17,0.10,0.10,0.10,0.10,0.10,0.05,0.05,0.05,0.05,0.00,0.00],[18,0.20,0.10,0.10,0.10,0.10,0.05,0.05,0.10,0.05,0.05,0.05],[19,0.10,0.15,0.10,0.10,0.10,0.10,0.10,0.10,0.10,0.05,0.05],[20,0.10,0.10,0.15,0.10,0.10,0.10,0.10,0.10,0.10,0.10,0.05],[21,0,00,0.10,0.10,0.10,0.10,0.10,0.10,0.10,0,10,0.10,0.10],[22,0.00,0,00,0.10,0.10,0.10,0.10,0.10,0.10,0.10,0.10,0.10],[23,0.00,0.00,0.00,0.10,0.10,0.10,0.10,0.10,0.10,0.10,0.10],[24,0.00,0.00,0.00,0.00,0.10,0.10,0.10,0.10,0.10,0.10,0.10],[25,0.00,0.00,0.00,0.00,0.00,0.10,0.10,0.10,0.10,0.10,0.10],[26,0.00,0.00,0.00,0.00,0.00,0.00,0,05,0.05,0.10,0.10,0.10],[27,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.05,0.05,0.10,0.10],[28,0.00,0.000,0.00,0.00,0.00,0,00,0,00,0.00,0.05,0.05,0.05],[29,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.05,0,05],[30,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.00,0.05]]
If 27 casting is scheduled for production what would be expected profit?
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