Mike Raven owns a thriving independent bookstore in artsy Lawrence, Kansas. He must decide how many copies to order of a new book. The book's retail price is $20 and the wholesale price is $12. The publisher will buy back the retailer's leftover copies at a full refund but Raven bookstore incurs $4 in shipping and handling costs for each book returned to the publisher. Mike believes his demand forecast can be represented by a normal distribution with mean 200 and standard deviation 80.

(e) Suppose Mike orders 300 copies of the book. What are Mike's expected sales?

(f) If Mike orders the optimal number of parkas you found in part b, what is the expected profit?

(g) How many books should Mike order if he wants to achieve a 98.5% instock probability?