EcoTable is a retailer of specialty organic and ecologically friendly foods. In one of their Cambridge, Massachusetts, stores, they plan to offer a gift basket of Tanzanian teas for the holiday season. They plan on placing one order and any leftover inventory will be discounted at the end of the season.Expected demand for this store is 45 baskets normally distributed with a standard deviation of 10 baskets. The gift basket sells for $55, the purchase cost to EcoTable is $32, and leftover baskets will be sold for $20.What is the expected profit if EcoTable uses the newsvendor model correctly?
About $600
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