Amazing Bakers Sells Bread to 40 Supermarkets

question 50

Essay

Amazing Bakers sells bread to 40 supermarkets.It costs Amazing $1250 per day to operate its plant.The profit per loaf of bread sold in the supermarket is $0.025.Any unsold bread is returned to Amazing to be sold at a loss of $0.015.
a.If sales follow a normal distribution with μ = 70,000 and σ = 5000 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 $0.03 and the loss per loaf of bread returned is $0.018.If μ = 60,000 and σ = 4000 per day,how many loaves should Amazing bake daily?

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Definitions:

Competitive Advantages

Competitive advantages are attributes that allow a company to outperform its competitors, such as superior products, branding, or efficiency.

Marketing Strategies

Overall game plans designed to achieve marketing objectives, involving targeting, positioning, and the effective allocation of resources.

Competitors

Other businesses that offer similar products or services within the same market and vie for the same potential customers.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.