Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $250

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Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $250 to manufacture, and the introductory price is $300. At this price, the anticipated demand is normally distributed with a mean of μ = 100 and a standard deviation of σ = 40. Any unsold units at the end of the season are unlikely to be valuable and will be disposed of in a post-season sale for $50 each. It costs $20 to hold a unit in inventory for the entire season. How many units should Green Thumb manufacture for sale? What is the expected profit from this policy? On average, how many customers does Green Thumb expect to turn away because of stocking out?

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