Missing information:
The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.
x f(x)
Unit Demand Probability
0 0.10
1,000 0.10
2,000 0.30
3,000 0.40
4,000 0.10
Answer:
total expected demand = 100 + 600 + 1,200 + 400 = 2,300 units
the company spends 2,300 x $8 = $18,400 to produce the units in stock
the company earns 2,000 x $10 = $20,000 from selling the units
assuming that the remaining units (unsold units) must be discarded and have no value, then the company will earn $20,000 - $18,400 = $1,600