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The Above Table Shows the Probability Distribution of Cake Sales

question 63

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The above table shows the probability distribution of cake sales at Busy Betty's Bakery. -Refer to the table above. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 21st cake in inventory? A) $6.10 B) $6.40 C) $8.00 D) $7.20 The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
-Refer to the table above. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 21st cake in inventory?

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