Question: Consider a newsvendor problem where demand is expected to be normally distributed with a mean of 3000 units and a standard deviation of 700 units.

Consider a newsvendor problem where demand is

Consider a newsvendor problem where demand is expected to be normally distributed with a mean of 3000 units and a standard deviation of 700 units. This is a high-margin monopoly item, with a variable production cost of $61 per unit and a sales price of $195 per unit. In addition, the producer must pay $5 to discard any unsold units. How many units should be produced? a) u = $ = l/unit. b) o = $ / unit. = . c) Z-value = (round your response to two decimal places). d) The production quantity should be units (round your response to the nearest integer)

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