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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)?
Write an expression for total cost. The Total Cost expresson is. Write an expression for total revenue. The Total Revenue Expression is.
Calculate the unit price of each of the following items:
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