A Retailer Can Purchase Units of a Perishable Item for 75

question 73

Short Answer

A retailer can purchase units of a perishable item for 75 cents each.The retailer sells the item for $2.00.Unsold items are worthless and will be discarded.If demand for the item can be approximated by a normal distribution having a mean of 150 and a standard deviation of 30,how many units should the retailer stock to maximize expected profit?
____________________ items

---

Definitions:

Sales Total

The aggregate amount from all sales transactions within a given period.

Account Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Outstanding Debt

The total amount of borrowed money that has not yet been repaid by the borrower.

Average Age

The mean age of a group of individuals or items, calculated by summing their ages and dividing by the number of individuals or items.