Every day, Fran Chapman of Fran's Flowers makes floral arrangements for sale at the local hospital. The arrangements cost her approximately $12 to make, but they sell for $27. Any leftover arrangements can be sold at a heavily discounted price of $5 the following day. Fran knows from past experience that the daily demand follows a normal distribution. The mean value and standard deviation for demand are 20 and 3, respectively. Suppose that your order qty is 22.02. Use the following table for Loss Function. Z F(z) L(z) 0.67 0.75 0.14 0.76 0.77 0.13 0.80 0.79 0.12 0.84 0.80 0.11 0.92 0.82 0.09 Compute Expected Lost Sales, Expected Sales, Expected Leftover, and Expected Profit, respectively.

Every day, Fran Chapman of Fran's Flowers makes floral arrangements for sale at the local hospital. The arrangements cost her approximately $12 to make, but they sell for $27. Any leftover arrangements can be sold at a heavily discounted price of $5 the following day. Fran knows from past experience that the daily demand follows a normal distribution. The mean value and standard deviation for demand are 20 and 3, respectively. Suppose that your order qty is 22.02. Use the following table for Loss Function. Z F(z) L(z) 0.67 0.75 0.14 0.76 0.77 0.13 0.80 0.79 0.12 0.84 0.80 0.11 0.92 0.82 0.09 Compute Expected Lost Sales, Expected Sales, Expected Leftover, and Expected Profit, respectively.

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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