Question
The Lake Sharkey BBQ Pit serves slow cooked beef brisket by the pound. Based on historical sales during the Labor Day weekend, management has forecasted
The Lake Sharkey BBQ Pit serves slow cooked beef brisket by the pound. Based on historical sales during the Labor Day weekend, management has forecasted brisket sales in pounds as shown in the following table. Lake Sharkey spends $14 to produce each pound of brisket for which it charges $23 per pound. Any unsold brisket at the end of the weekend is ground into chili which sells for $12 per pound. How many pounds of brisket should The Lake Sharkey BBQ Pit prepare for sale this Labor Day?
Demand in pounds Probability 500 0.10 1000 0.40 1500 0.30 2000 0.15 2500 0.05
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