Zamatia manufactures high-quality sunglasses with production cost $40 per unit and sells them to Ewha store at
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Zamatia manufactures high-quality sunglasses with production cost $40 per unit and sells them to Ewha store at the wholesale price $80 per unit. Ewha store sells the sunglasses at $120 per unit and salvages the leftovers at $20 per unit at the end of the selling season. The customer demand for sunglasses is expected to be Normally distributed with mean 1,000 and standard deviation 200. If Zamatia and Ewha store want to maximize their own profits individually, what will be Zamatia’s profit? (Use the round-up rule if needed.)
Select one:
a. $38,000
b. $36,000
c. $49,120
d. $34,400
e. $40,000
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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