Find units of new product bought for resale by emv analysis


You are thinking of adding the new food product to the store for resale. You are sure that, in a month, minimum demand for product will be six units, where as maximum demand will be eight units. (Unfortunately, new product has the 1-month shelf life and is considered to be waste at end of month.) You will pay $60/unit for the new product while you plan to sell product at the $40/unit profit. Estimated demand for the new product in any given month is six units(p=0.1), seven units(p=0.4), and eight units(p=0.5). How many units of new product must be bought for resale using EMV analysis?

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Mathematics: Find units of new product bought for resale by emv analysis
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