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

Question 15

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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.   If they elect to make 4 dozen donuts per day what is their expected profit? A) $46.70 B) $65.10 C) $68.00 D) $80.20 If they elect to make 4 dozen donuts per day what is their expected profit?


A) $46.70
B) $65.10
C) $68.00
D) $80.20

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