A publisher is printing calendars for the coming year. Demand for calendars is normally distributed, with a

Question:

A publisher is printing calendars for the coming year. Demand for calendars is normally distributed, with a mean of 70,000 and a standard deviation of 25,000. The cost per calendar is $3, and they are sold for $10 each. All unsold calendars are recycled at the end of January.

a. How many calendars should the publisher have printed? What is the expected profit?
b. The printer has offered to discount the printing cost to $2.75 per calendar if the publisher orders at least 100,000. What should the publisher do?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: