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The owners of Good Taste, a bakery in Lewisburg, PA are attempting to determine how many loaves of their famous raisin bread to bake for the first day of the upcoming county fair. Company accounting records show that each loaf of raisin bread costs $1.30 to make. Good Taste plans to sell each loaf for $2.75. Unsold loaves can be sold on the county fair’s second day as “day-old” products. The owners plan to sell such loaves for $1.00 each. The bakery owners believe that the number of loaves they will sell on the county fair’s first day follows the probability distribution as provided in the file. Their goal in deciding how many loaves to bake is to maximize expected profit from these sales.
1) Develop an Excel simulation model in the attached shell.
2) Develop a corresponding data table to find the best number of loaves to bake.
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