How many units of new product must be bought for resale


You are thinking of adding the new food product to the store for resale. You are sure that, in the month, minimum demand for product will be 6 units, where as maximum demand will be 8 units. (Unfortunately, new product has one-month shelf life and is thought to be waste at the end of month.) You will pay $60/unit for the new product while you plan to sell product at a $40/unit profit. Evaluated 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). Using EMV analysis, how many units of new product must be bought for resale?

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Mathematics: How many units of new product must be bought for resale
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