Question: Johnson Electronics sells electronic components through catalogs. Catalogs are updated and printed every three months. Each printing run incurs a fixed cost of $ 2
Johnson Electronics sells electronic components through catalogs. Catalogs are updated and printed every three months. Each printing run incurs a fixed cost of $ which involves catalog design cost and printing setup cost. The variable production cost is $ per catalog. Annual demand for catalogs is estimated to be normally distributed with a mean of and a standard deviation of Data indicate that, on average, each customer ordering a catalog generates a revenue of $ from sales. How many catalogs should be printed in each run?
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