Maria Makes Tortillas and Sells Them from Her House

question 163

Essay

Maria makes tortillas and sells them from her house. She is concerned about purchasing too many ingredients and having to throw away unsold tortillas at the end of the day. It costs her $5.00 to make 100 tortillas and she sells them for $20.00 per 100. She has kept track of sales and discovered that she can sell 1,500 tortillas about 25% of the time, 1,000 tortillas about 50% of the time and only 500 tortillas the rest of the time. What is the minimum number of tortillas should she make daily to maximize profit? Round to the nearest 100 tortillas.

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