Problem

In Example 4b, suppose that the department store incurs an additional cost of c for each u...

In Example 4b, suppose that the department store incurs an additional cost of c for each unit of unmet demand. (This type of cost is often referred to as a goodwill cost because the store loses the goodwill of those customers whose demands it cannot meet.) Compute the expected profit when the store stocks 5 units, and determine the value of s that maximizes the expected profit.

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