H&C sells toys for the holiday season in specially designed boxes. The firm sells four different designs, and currently, all packaging is done in the plant. All manufacturing and packaging for the holiday season are completed before the start of the season. The demand forecast for each of the four designs is normal, with a mean of 10,000 and a standard deviation of 4,000 (four designs have the same demand distribution). Each box costs $10 and is sold for $20. Any unsold boxes at the end of the season are discounted to$8, and they all sell out at that price. The cost of holding a box in inventory for the entire season before selling it at a discount is $1.

Now H&C wants to consider postponement.

Toys will be produced before the start of the season, but packaging will be done later as H&C orders come in. The express packaging line adds $3 to the cost per unit of production. (I.e., toys production for all designs produced first, packaging for each design postponed.)

Determine how many total toys H&C should produce if it decides to postpone packaging?

a) 40494

b) 40773

c) 40335

d) 40350