Mac wishes to determine the number of copies of The Computer Journal he should purchase each Sunday.

Question:

Mac wishes to determine the number of copies of The Computer Journal he should purchase each Sunday. A study of the historical data showed that the demand is approximately normally distributed with mean = 11.73 and standard deviation = 4.74. Mac purchases the magazines for 25 cents and can sell them for 75 cents. He can salvage unsold copies for 10 cents.
a) Calculate the overage cost.
b) Calculate the underage cost.
c) How many copies of the Journal should Mac purchase?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics A Decision Making Approach

ISBN: 9780133021844

9th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry

Question Posted: