Greenwood Groceries buys fresh fruit daily for $10 a crate. Crates sold the same day bring $15 profit contribution, each. Crates that are not sold in a day are sold later as animal food for $2.50 each. The demand for fruit fluctuates, according to the following distribution (data collected over the last 300 days): Demand (Number of Crates) Number of Days 10 120 90 11 75 12 15 13 Total - 300

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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How many crates should the store order if greenwood wants to maximise profit from selling units(use expected value approach) and what will be the average daily profit?

Greenwood Groceries buys fresh fruit daily for $10 a crate. Crates sold the same day
bring $15 profit contribution, each. Crates that are not sold in a day are sold later as
animal food for $2.50 each. The demand for fruit fluctuates, according to the following
distribution (data collected over the last 300 days):
Demand
(Number of Crates)
Number of Days
120
10
90
11
75
12
13
1.5
M Total - 300
Transcribed Image Text:Greenwood Groceries buys fresh fruit daily for $10 a crate. Crates sold the same day bring $15 profit contribution, each. Crates that are not sold in a day are sold later as animal food for $2.50 each. The demand for fruit fluctuates, according to the following distribution (data collected over the last 300 days): Demand (Number of Crates) Number of Days 120 10 90 11 75 12 13 1.5 M Total - 300
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