Produce Company needs to know the pounds of bananas to have onhand each day....

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Accounting

Produce Company needs to know the pounds of bananas to have onhand each day. Each pound of bananas costs $.25 and can be sold for$.40 Unsold bananas are worthless at the end of the day. Thefollowing demands were found after studying the last six monthssales:
200 pounds of bananas one fourth of the time.
300 pounds of bananas one half of the time
400 pounds of bananas one half of the time
required
determine whether ABC grocery should order 200,300 or 400 poundsof banans

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4.4 Ratings (736 Votes)

Ordered Quantity Demand Expected Value 200 300 400 200 30 30 30 30 300 5 45 45 35 400 20 20 60 20 Probability 025 05 025 Cost of the Banana25 per Pound Selling See Answer

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In: AccountingProduce Company needs to know the pounds of bananas to have onhand each day. Each...Produce Company needs to know the pounds of bananas to have onhand each day. Each pound of bananas costs $.25 and can be sold for$.40 Unsold bananas are worthless at the end of the day. Thefollowing demands were found after studying the last six monthssales:200 pounds of bananas one fourth of the time.300 pounds of bananas one half of the time400 pounds of bananas one half of the timerequireddetermine whether ABC grocery should order 200,300 or 400 poundsof banans