(b) W price schedule on QUANTITY ORDERED TO (b) If the cost increases continues to sell tree trees should Harry sto (c) Harry is thinking ab $100 per tree. Assu $20. With the new p probability of sellin will be 0.25 each. H PRICE $10.00 FROM 500 9.99 1 1,000 9.98 501 1,500 9.97 1,001 2,000 W4 1,501 6-52 Teresa Granger is the manager of Chicago Cheese, which produces cheese spreads and other cheese-re- lated products. E-Z Spread Cheese is a product that has always been popular. The probability of sales, in more than 125 tree What do you recom :6-54 In addition to selling Christmas holidays, H ordinary hardware iten the most popular items is made just for Harry is $4 per bottle, but un and unusable after or as follows: cases, PROBABILITY DEMAND (CASES) 0.2 10 0.3 11 0.2 12 is $1.20. During the sales of glue have b deviation is 7. How 0.2 13 14 0.1 Harry's Hardware st normal distribution. 108 A case of E-Z Spread Cheese sells for $100 and has a cost of $75. Any cheese that is not sold by the end of the week is sold to a local food processor for $50. Teresa never sells cheese that is more than a week old. Use marginal analysis to determine how many cases of E-Z Spread Cheese to produce each week to maximize average profit. :6-55 The marginal loss c apples from the state The marginal profit year, the mean sale was 45,000 cases, 4,450. How many be brought to mar normal distribution 6-56 Linda Stanyon has 6-53 Harry's Hardware does a brisk business during the year. During Christmas, Harry's Hardware sells Christmas trees for a substantial profit. Unfortu- nately, any trees not sold at the end of the season are totally worthless. Thus, the number of trees to stock for a given season is a very important decision. The following table reveals the demand for Christmas Plano Produce for is a small compan produce item, ton sales averaging 4 to be normally di time the sales are trees: case costs $10 a not sold must be TROL MODELS DEMAND FOR D(a) Us PROBABILITY CHRISTMAS TREES be DERED sta PRICE blaon TO (b) Us 50 0.05 $10.00 mi 500 75 0.1 9.95 stc 1,000 100 0.2 9.90 1,500 6-57 Paula 125 0.3 9.85 repor sells 2,000 aT.bopcko AUK 150 0.2 her sa 175 0.1 ber of CDs to produce 1o 28Wu Paula 200 0.05 for $ e following quantity- imal order quantity? 012 end c Harry sells trees for $80 each, but his cost is onl $20. shou :6-58 Ema RDERED pliar is cC (a) Use marginal analysis to determine how manr trees Harry should stock at his hardware store. (b) If the cost increases to $35 per tree and Fay continues to sell trees for $80 each, how ma trees should Harry stock? (c) Harry is thinking about increasing the pri $100 per tree. Assume that the cost pe TO PRICE 500 $10.00 com this 1,000 9.99 each 1,500 9.98 is 2 2,000 to 9.97 it co treei plac $20. With the new price, it is expected that the ager of Chicago Cheese, reads and other cheese-re- Cheese is a product that The probability of sales, in probability of selling 50, 75, 100, or 125 tre will be 0.25 each. Harry does not expect to mer yea sell frig more than 125 trees with this price increase What do you recommend? Ass : 6-54 In addition to selling Christmas trees during te Christmas holidays, Harry's Hardware sells all th ordinary hardware items (see Problem 6-53). One of the most popular items is Great Glue HH, a glue th is made just for Harry's Hardware. The selling pric is $4 per bottle, but unfortunately, the glue getsli and unusable after one month. The cost of the gl is $1.20. During the past several months, the me (a) (b) PROBABILITY 0.2 0.3 (c) 0.2 0.2 0.1 (d) Standa nd the sales of glue h