ASAP WILL GIVE U THUMBS UP PLEASE

Consider an apparel supplier that is taking orders for dresses with a Christmas motif. The production capacity available from the supplier is 4,000 dresses, and the unit selling price and purchasing cost are $125 and $112, respectively. The supplier is currently taking orders from retailers and must decide on how many orders to commit to at this time. If it has orders that exceed capacity, it has to arrange for backup capacity that costs $130 per dress. Retailers have been known to cancel their orders near the winter season as they have better visibility into expected demand. How many orders should the supplier accept if cancellations are normally distributed, with a mean of 1000 and a standard deviation of 400?