A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $54 each to make and they sell for $80 each. Unsold cakes are reduced to half price on Mondays. Demand for the weekend is normally distributed with a mean of 60 and a standard deviation of 10.
What is the optimal probability of stocking out of wedding cakes on the weekend?
How many wedding cakes should be made for the weekend?