Johnson Electronics sells electrical and electronic components through catalogs. Catalogs are printed once every two years. Each printing run incurs a fixed cost of $ 25,000, with a variable production cost of $ 5 per catalog. Annual demand for catalogs is estimated to be normally distributed with a mean of 16,000 and standard deviation of 4,000. Data indicates that, on average, each customer ordering a catalog generates a profit of $ 35 from sales. Assuming that Johnson wants only one printing run in each two- year cycle, how many catalogs should be printed in each run?

  • CreatedNovember 06, 2015
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