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Goop Inc. needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be Normally distributed with a mean of 250 gallons and a standard deviation of 80 gallons. Goop sells the polymer for $25 per gallon. Goop’s purchases raw material for $10 per gallon and Goop must spend $5 per gallon to dispose of all unused raw material due to government regulations. (Assume one gallon of raw material yields one gallon of polymer with no extra cost.) If demand is more than Goop can make, then Goop sells only what they made and the rest of the demand is lost. Suppose Goop purchases 300 gallons of raw material.
What are the expected sales (in gallons)?
A) Less than 140
B) At least 140, but less than 180
C) At least 180, but less than 220
D) At least 220, but less than 260
E) At least 260, but less than 300
F) At least 300, but less than 340
G) At least 340
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