A Marina Has Two Party Boats Available for Customers to Rent

question 104

Short Answer

A marina has two party boats available for customers to rent. Historically, demand for party boats has followed this distribution shown below. The revenue per rental is $400. If a customer wants a party boat and none is available, the store gives a $150 coupon for jet ski rental.
a. What is the expected demand?
b. What is the expected revenue?
c. What is the expected cost?
d. What is the expected profit?

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Definitions:

Fibroblasts

Cells that produce collagen and other fibers, playing a critical role in wound healing and maintaining the structural integrity of connective tissues.

Collagen

A major structural protein found in skin, bone, tendons, and other connective tissues, providing strength and elasticity.

Capillaries

The smallest blood vessels in the body, where the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste substances occurs between blood and surrounding tissues.

Simple Squamous Epithelium

A type of epithelial tissue consisting of a single layer of flat cells that facilitates diffusion and filtration in sites such as the alveoli of the lungs and the glomeruli of the kidneys.