Ayang imchem is the manager of casto cheese, which produces cheese spreads and other cheese related products. E-Z spread cheese is a product that has always been popular. The probability of sales, cases, is as follows:
Demand (cases) Probability
A case of E-Z spread cheese sells for $ 100 and has a cost of $ 75. Any cheese that is not sold by the end of the week is sold to a local food processor for $ 50. Teresa never sells cheese that is more than a week old. Use marginal analysis to determine how many cases of E-Z spread cheese to produce each week to maximize average profit.© BrainMass Inc. brainmass.com October 10, 2019, 7:24 am ad1c9bdddf
Marginal profit/case (MP) = 100 - 75 = $25
Marginal loss/case (ML) = 75 - 50 = $25
Probability (no profit no ...
Marginal analysis to find suitable option for profit maximization.