Amazing Bakers Sells Bread to 40 Supermarkets

question 22

Short Answer

Amazing Bakers sells bread to 40 supermarkets.It costs Amazing $1,250 per day to operate its plant.The profit per loaf of bread sold in the supermarket is $.025.Any unsold bread is returned to the Amazing Thrift Store to be sold at a loss of $.015.
a.If sales follow a normal distribution with  = 70,000 and  = 5,000 per day, how many loaves should Amazing bake daily?
b.Amazing is considering a different sales plan for which the profit per loaf of bread sold in the supermarket is $.03 and the loss per loaf bread returned is $.018. If  = 60,000 and  = 4,000 per day, how many loaves should Amazing bake daily?

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