It cost a bakery $3.50 to make apple pies that sell for $12 the first day they are baked.
the probability of selling the apple pie the first day is 75%.
if a pie is not sold on the first day, the new price is $8.50
there is a 12% probability of selling it on the second day
if the apple pie does not sell by the end of the second day, it is donated.
what is the approximate expected profit per pie for the bakery on the sale of its apple pie?
a. $6.52
b. $10.02
c. $5.67
d. $9.57