A store in New Orleans makes 100 beignets every morning. The exact demand for beignets throughout the day is unknown. Let's suppose the store knows the daily demand distribution for beignets. Demand for beignets could be either 80 with probability 0.5, it could be 120 with probability 0.3, or it could be 100 with probability 0.2. The store sells whatever the demand is, and if there are leftover unsold beignets at the end of the day, the store throws them out. Each beignet is sold for $4. What is the expected revenue? Use Excel.

A store in New Orleans makes 100 beignets every morning. The exact demand for beignets throughout the day is unknown. Let's suppose the store knows the daily demand distribution for beignets. Demand for beignets could be either 80 with probability 0.5, it could be 120 with probability 0.3, or it could be 100 with probability 0.2. The store sells whatever the demand is, and if there are leftover unsold beignets at the end of the day, the store throws them out. Each beignet is sold for $4. What is the expected revenue? Use Excel.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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