Homework SourseDan has a newspaper stand where he sells papers for 050 each
Dan has a newspaper stand where he sells papers for $0.50 each. The papers cost him $0.30 each, giving him a 20-cent profit on each one he sells. From past experience, Henry knows that
20% of the time he sells 100 papers
20% of the time he sells 150 papers
30% of the time he sells 200 papers
30% of the time he sells 250 papers
Assuming that Dan believes the cost of a lost sale is 10 cents and any unsold papers cost him $0.30, simulate Dan\'s profit outlook over 5 days if he orders 175 papers for each of the 5 days. Use the following random numbers: 52, 06, 50, 88, 53.
Day
Random number
Number of papers demanded
Number of papers ordered
Number of papers sold
Number of papers left over
Number of sales lost
Profit
1
52
175
2
6
175
3
50
175
4
88
175
5
53
175
| Day | Random number | Number of papers demanded | Number of papers ordered | Number of papers sold | Number of papers left over | Number of sales lost | Profit |
| 1 | 52 | 175 | |||||
| 2 | 6 | 175 | |||||
| 3 | 50 | 175 | |||||
| 4 | 88 | 175 | |||||
| 5 | 53 | 175 |
Solution
The table is as follows:
| Day | Random number | Papers demanded | Papers sold | Papers left over | sales lost | profit | net profit |
| 1 | 52 | 175 | 52 | 123 | 12.30 | 10.40 | -1.90 |
| 2 | 6 | 175 | 6 | 169 | 16.90 | 1.20 | -15.70 |
| 3 | 50 | 175 | 50 | 125 | 12.50 | 10.00 | -2.50 |
| 4 | 88 | 175 | 88 | 87 | 8.70 | 17.60 | 8.90 |
| 5 | 53 | 175 | 53 | 122 | 12.20 | 10.60 | -1.60 |
