Question: The variable cost, which includes material, labour and shipping costs, is E34 per doll. During the holiday selling season, Baba will sell the dolls for

The variable cost, which includes material, labour and shipping costs, is E34 per doll. During the holiday selling season, Baba will sell the dolls for E42 each. If Baba overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay Baba E10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60 000 dolls with a standard deviation of 15

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