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Hertz Donuts Sells Artisanal Donuts for $25 Per Dozen to Unsuspecting

Question 113

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Hertz Donuts sells artisanal donuts for $25 per dozen to unsuspecting hipsters.It costs them $8 per dozen to make donuts and any unsold donuts are sold as "Oldies But Goodies" for $5 per dozen the next day (or two, no one really pays attention to the sell-by dates) .The demand pattern's probability distribution is displayed in the table. Hertz Donuts sells artisanal donuts for $25 per dozen to unsuspecting hipsters.It costs them $8 per dozen to make donuts and any unsold donuts are sold as  Oldies But Goodies  for $5 per dozen the next day (or two, no one really pays attention to the sell-by dates) .The demand pattern's probability distribution is displayed in the table.   How many donuts should they make each day to maximize profit? A) 4 dozen B) 5 dozen C) 6 dozen D) 7 dozen How many donuts should they make each day to maximize profit?


A) 4 dozen
B) 5 dozen
C) 6 dozen
D) 7 dozen

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