Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrolas demand during the season is normally distributed with a mean of 1,300 and a standard deviation of 800. Use Table 13.4 , Figure 13.15.jpg, Figure 13.16.jpg

Solectrics production cost for the component is $54 per unit, and it plans to sell the component for $72 per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers for $122 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $45 each. The existing contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept any returns of unsold inventory, so Flextrola must dispose of excess inventory in the secondary market.

A) If Flextrola orders 1200 units, how many units of inventory can Flextrola's expect to sell in the secondary electronics market? Use Table 13.4.

B) If Flextrola orders 1200 units, what are expected sales?

C) If Flextrola orders 1200 units, what is expected profit?