The retail price of a Mother’s Day cake in San Ramon Safeway is $30.00. A local bakery sells the cakes to the  Safeway at $20.00. The Safeway will dispose of all of the unsold cakes at 50% off the retail price, at the end  of the Mother’s Day weekend.

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The retail price of a Mother’s Day cake in San Ramon Safeway is $30.00. A local bakery sells the cakes to the  Safeway at $20.00. The Safeway will dispose of all of the unsold cakes at 50% off the retail price, at the end  of the Mother’s Day weekend. The manager in Safeway estimates that demand for this cake during the  Mother’s Day weekend is Normal Distribution with a mean of 100 cakes and a standard deviation of 50 cakes.  

(1) How many cakes should San Ramon Safeway order from the bakery?  

(2) If the store manager learned a new forecast method in a class that would reduce the standard deviation of  estimated demand from 50 to 25 (mean remains 100), how many cakes should San Ramon Safeway order from  the local bakery? 

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