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  3. at the beginning of december, xyz company employed

At the beginning of December, XYZ Company employed a contractor to cut enough trees to meet...

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General Management

At the beginning of December, XYZ Company employed a contractorto cut enough trees to meet the expected demand for Christmastrees. They sell these trees to a local wholesaler in batches of100. Over the past few years, the demand has been as follows,Demand Probability 0 0% 1 4% 2 6% 3 10% 4 23% 5 17% 6 14% 7 12% 90%57% None of above 96% 80% 8 9% 9 5%

If it costs $12 to cut and trim a tree that sells for $28, howmany trees should the company cut down?

What is the profit (loss) if the company decides to cut 400trees, and the demand is 200?

What is the expected profit (loss) if the company decides to cut400 trees?

Answer & Explanation Solved by verified expert
3.6 Ratings (434 Votes)
If the company decides to cut 400 trees then the cost incurred is 40012 4800 However they will only be able to sell 200 trees So the revenue earned is 20028 5600 This means the profit is 56004800 800 If the company    See Answer
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