1. A company is manufacturing blue jeans at a cost of $9.99 per pair. They plan to put a price tag of $44 99 per pair. They plan to produce 400,00 pairs. Any unsold units can be sold in the aftermarket for $14.99/pair. Demand (units) 95,000 200,000 275,000 350,000 Demand Probability 0.15 0.40 0.35 0.10 What is the probability that their gross income will be over $15,00,000? They also want to know want is the probability that their net profit will be less than $5,000,000

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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1. A company is manufacturing blue jeans at a cost of $9.99 per pair. They plan to put a price tag of $44 99
per pair. They plan to produce 400,00 pairs. Any unsold units can be sold in the aftermarket for $14.99/pair.
Demand (units)
95,000
200,000
275,000
350,000
Demand Probability
0.15
0.40
0.35
0.10
What is the probability that their gross income will be over $15,00,000? They also want to know want is the
probability that their net profit will be less than $5,000,000
Transcribed Image Text:1. A company is manufacturing blue jeans at a cost of $9.99 per pair. They plan to put a price tag of $44 99 per pair. They plan to produce 400,00 pairs. Any unsold units can be sold in the aftermarket for $14.99/pair. Demand (units) 95,000 200,000 275,000 350,000 Demand Probability 0.15 0.40 0.35 0.10 What is the probability that their gross income will be over $15,00,000? They also want to know want is the probability that their net profit will be less than $5,000,000
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