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bogdanovich [222]
3 years ago
15

A Bakery stocks daily five gourmet fancy fruit-topped cakes. All the cakes that are not sold during the day are thrown away, and

the bakery restocks the next day with new cakes, bringing the in-stock level up to five at the beginning of each day. If daily demand is greater than the five cakes in stock the bakery loses sales. The special cake sells for $32 and costs the store $10. The probability distribution of daily demand for the cake is as shown below daily demand - 0, 1,2,3,4,5,6,7 Px - 0.01, 0.02, 0.04, 0.06, 0.20, 0.60, 0.05, 0.02
Business
1 answer:
fomenos3 years ago
4 0

Answer:

The answer is "$1.98".

Explanation:

calculating the profit per cake = \$32 -\$10 =\$22

\text{if demand}=6 , \ lose =\$22 \\\\\text{if demand}= 7,\ lose = \$44\\

Calculating E(profit lost):

=\$22 \times 0.05+ \$44 \times 0.02\\\\ =\$ 1.1+\$ 8.8\\\\=\$ 1.98

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4 0
3 years ago
Furnco sells secretarial chairs. Annual demand is normally distributed, with mean of 1,040 chairs and standard deviation of 50.9
kaheart [24]

Answer:

Reorder point is 40

Explanation:

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The formula for Reorder point is

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= 40.

The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

7 0
2 years ago
How important is structure/culture compared to the other primary internal considerations for a strategic plan?
ZanzabumX [31]

Explanation:

The organizational structure and culture are essential for the design of a strategic plan aligned with the organization's purpose.

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There are 11 truths in menu writing. These should be followed and in many case
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Quantity. Amounts and weights must be accurate. ...
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1 year ago
Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten ye
romanna [79]

Answer:

(D) $71,446

Explanation:

we will calcualte the present value for an 11 payments  annuity-due (there is eleven payment of 10,000 if we count the one at purchase date) which couta is 10,000 discounted at 10%

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6 0
3 years ago
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