Question: 1 2 . 8 ( Land ' s End ) Geoff Gullo owns a small firm that manufactures Gullo Sunglasses. He has the opportunity to

12.8(Land's End) Geoff Gullo owns a small firm that manufactures Gullo Sunglasses. He
has the opportunity to sell a particular seasonal model to Lands End. Geoff offers
Lands End two purchasing options:
This season's demand for this model will be normally distributed with mean of 200 and
standard deviation of 125. Land's End will sell those sunglasses for $100 each. Geoff's
production cost is $25.
a. How much would Land's End buy if they chose option 1?
b. How much would Land's End buy if they chose option 2

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