Question

The Really Spicy Hot Sauce Company decides to make a special-edition, extra-spicy version of its Really Spicy Hot Sauce. Expected demand for the special-edition version of their hot sauce is estimated to be 5000, normally distributed with a standard deviation of 1200. It will cost $2.50 to make each bottle; the bottles are intended to sell for $20. Whatever doesn't sell will be given to employees as a gift, thus earning $0 in revenue. Because it takes 3 years for the hot sauce to fully ferment and mature, the Really Spicy Hot Sauce Company can only make one batch of the special-edition hot sauce. How many bottles should the company make in order to maximize their expected profit? ______________

Answer 1

$32,00 because it is a lot of money