How much should abc produce each morning

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ABC sells orange juice. They mix a new batch of orange juice each morning. They have determined that it costs $2.50 per gallon to make the orange juice and the average price they receive is $6 per gallon. Any orange juice not sold by the end of the day is sold to a canned juice producer for $1 per gallon. Demand is approximately normally distributed with a mean of 55 gallons and a standard deviation of 8 gallons. How much should ABC produce each morning in order to maximize their long term profit?

Reference no: EM132070949

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