You are considering adding a new food product to your store for resale. You are certain that, in a month, minimum demand for the product will be 6 units, while maximum demand will be 8 units. (Unfortunately, the new product has a one-month shelf life and is considered to be waste at the end of the month.) You will pay $60/unit for this new product while you plan to sell the product at a $40/unit profit. The estimated demand for this new product in any given month is 6 units(p=0.1), 7 units(p=0.4), and 8 units(p=0.5). Using EMV analysis, how many units of the new product should be purchased for resale?

Question 13: Using EMV analysis, how many units of the new product should be purchased for resale?

	A.	purchase 5
	B.	purchase 6
	C.	purchase 7
	D.	purchase 8
	E.	purchase 9

What is the maximum EMV of profit you can make?

	A.	240
	B.	250
	C.	260
	D.	270
	E.	300