A bread manufacturer must decide how much to produce.

The cost figures are given below:

Profit Matrix

Selling Price 38 Production

variable Cost 25 Probability Daily Demand 40 41
Fixed Cost 200 10% 40 320 295
20% 41 320 333
40% 42 320 333
20% 43 320 333
10% 44 320 333
100% EV 320 329.2

Profit for producing 40 units

units SP
Revnue: 40 38 1520

Total Variable Cost 40 25 1000

Fixed Cost 200

Profit 320
Production
42 43 44
270 245 220
308 283 258
346 321 296
346 359 334
346 359 372
330.8 317.2 296