A Perishable Product Is Purchased by a Retailer for $5

A perishable product is purchased by a retailer for $5 and is sold for $7.If an item is not sold during the day,the retailer loses $5.Past history has shown that there is a 30% chance of selling 28 of these products in a day,a 28% chance of selling 29 of them in a day,a 25% chance of selling 30 of them in a day and a 17% chance of selling 31 of them in a day.If you order 30 of the items per day,what is your expected daily profit?

A) $48.04
B) $23.41
C) $18.14
D) ‒$13.43

Correct Answer:

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