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A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 44 quarts per day and a standard deviation of 4 quarts per day. Excess costs run .30 cents per quart. The grocer orders 50 quarts per day.
a. What is the implied cost of shortage per quart?
The Express was established as the town newspaper after the first year of operations. The daily demand remained at 500, the standard deviation of daily demand at 10.0 Armentrout retailed at $1 newspapers purchased from Sheen.
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