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Famous Albert prldes himself on being the Cookle King of the West. Small, freshly baked cookles are the specialty of his shop. Famous Albert has asked for help to determine the number of cookles he should make each day. From an analysis of past demand, he estimates demand for cookles as PROBARTETTY OF DINAND 0.04 DENAND 1,900 dosen 2,000 2,200 2,400 2,600 2.800 3,000 0.10 0.20 0.26 0.15 0.03 0.14 Each dozen sells for $0.65 and costs $0.49, which includes handling and transportation. Cookles that are not sold at the end of the day are reduced to $0.30 and sold the following day as day-old merchandise. a. Compute the expected profit or loss for each cookle making decision quantity. (Round your answer to the nearest whole number. Enter expected losses with a negative sign.) Cookles Baked (Dozen) Probability of Demand Expected ProfitLoss 0.04 1,800 2,000 0.10 2,200 0.28 2,400 2,600 0.20 0.15

Famous Albert prldes himself on being the Cookle King of the West. Small, freshly baked cookles are the specialty of his shop. Famous Albert has asked for help to determine the number of cookles he should make each day. From an analysis of past demand, he estimates demand for cookles as PROBARTETTY OF DINAND 0.04 DENAND 1,900 dosen 2,000 2,200 2,400 2,600 2.800 3,000 0.10 0.20 0.26 0.15 0.03 0.14 Each dozen sells for $0.65 and costs $0.49, which includes handling and transportation. Cookles that are not sold at the end of the day are reduced to $0.30 and sold the following day as day-old merchandise. a. Compute the expected profit or loss for each cookle making decision quantity. (Round your answer to the nearest whole number. Enter expected losses with a negative sign.) Cookles Baked (Dozen) Probability of Demand Expected ProfitLoss 0.04 1,800 2,000 0.10 2,200 0.28 2,400 2,600 0.20 0.15

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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ok at b. Based on your answers to part a., what is the optimal number of cookles to make? nces Optimal number of cookies dozen c. By using marginal analysis, what is the optimal number of cookles to make? Optimal number of cookies dozen
Transcribed Image Text:ok at b. Based on your answers to part a., what is the optimal number of cookles to make? nces Optimal number of cookies dozen c. By using marginal analysis, what is the optimal number of cookles to make? Optimal number of cookies dozen
Problem 11-11 (Algo) Famous Albert prldes himself on being the Cookle King of the West. Small, freshly baked cookles are the specialty of his shop. Famous Albert has asked for help to determine the number of cookles he should make each day. From an analysis of past demand, he estimates demand for cookles as VROBARTLITY OF DENAND 0.04 DEEAND 1,800 dosen 2,000 2,200 0.10 0.20 2,400 2,600 2,000 3,000 0.26 0.15 0.03 0.14 ces Each dozen sells for $0.65 and costs $0.49, which includes handling and transportation. Cookles that are not sold at the end of the day are reduced to $0.30 and sold the following day as day-old merchandise. a. Compute the expected profit or loss for each cookie making decislon quantity. (Round your answer to the nearest whole number. Enter expected losses with a negative sign.) Cookles Baked (Dozen) Probability of Demand Expected Profit/Loss 1,800 0.04 2,000 0.10 2,200 0.28 2,400 0.26 2,600 0.15
Transcribed Image Text:Problem 11-11 (Algo) Famous Albert prldes himself on being the Cookle King of the West. Small, freshly baked cookles are the specialty of his shop. Famous Albert has asked for help to determine the number of cookles he should make each day. From an analysis of past demand, he estimates demand for cookles as VROBARTLITY OF DENAND 0.04 DEEAND 1,800 dosen 2,000 2,200 0.10 0.20 2,400 2,600 2,000 3,000 0.26 0.15 0.03 0.14 ces Each dozen sells for $0.65 and costs $0.49, which includes handling and transportation. Cookles that are not sold at the end of the day are reduced to $0.30 and sold the following day as day-old merchandise. a. Compute the expected profit or loss for each cookie making decislon quantity. (Round your answer to the nearest whole number. Enter expected losses with a negative sign.) Cookles Baked (Dozen) Probability of Demand Expected Profit/Loss 1,800 0.04 2,000 0.10 2,200 0.28 2,400 0.26 2,600 0.15
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