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[answered] A vendor sells hot dogs. She sells each hot dog at a price


A vendor sells hot dogs. She sells each hot dog at a price of 5 dollars and it costs her 3 dollars to make one hot dog. Lunch demand for hot dogs is normally distributed with a mean of 50 and a standard deviation of 10. She sells any left-over hot dogs later in the day at a reduced price of 2 dollars per hot dog. Virtually all hot-dog customers (both lunch and reduced price customers) also buy a soda that is sold for 75 cents. The sodas cost the vendor 10 cents. As soda can be easily stored, the vendor never runs out of soda. Assume that there is sufficient demand later in the day for any left-over hot dogs. How many hot dogs should the vendor make for the lunch crowd?


 


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