The J&B Card Shop sells calendars depicting a different Colonial scene each month. The once-a-year order for

Question:

The J&B Card Shop sells calendars depicting a different Colonial scene each month. The once-a-year order for each year’s calendar arrives in September. From past experience, the September-to-July demand for the calendars can be approximated by a normal probability with µ = 500 and σ = 120. The calendars cost $1.50 each, and J&B sells them for $3 each.
a. If J&B throws out all unsold calendars at the end of July (i.e., is zero), how many calendars should be ordered?
b. If J&B reduces the calendar price to $1 at the end of July and can sell all surplus calendars at this price, how many calendars should be ordered?

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