Question: Johnson Electronics sells electrical and electroniccomponents through catalogs. Catalogs are printedonce every two years. Each printing run incurs a fixedcost of $ 2 5 ,
Johnson Electronics sells electrical and electroniccomponents through catalogs. Catalogs are printedonce every two years. Each printing run incurs a fixedcost of $ with a variable production cost of $per catalog. Annual demand for catalogs is estimatedto be normally distributed with a mean of andstandard deviation of Data indicates that, onaverage, each customer ordering a catalog generates aprofit of $ from sales. Assuming that Johnson wantsonly one printing run in each twoyear cycle, howmany catalogs should be printed in each run?
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