A buyer for Needless Markup, a famous high-end department store, must decide on the quantity of a
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Question:
A buyer for Needless Markup, a famous "high-end" department store, must decide on the quantity of a high-priced women's handbag to procure in Italy for the following Christmas season. The unit cost of the handbag to the store is $30 and the handbag will sell for $150. Handbags not sold by the end of the season are purchased by a discount firm for $20. A detailed analysis of historical data shows that the number of handbags sold is described by a normal distribution with mean 300 and standard deviation 40. What is the optimal number of bags to be purchased?
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