1. Now or Never! specializes in "one day - one deal" selling. Every day they sell a product that isnot available the next day. If the item sells out, all the excess demand is lost and if items are leftover, they are salvaged and not sold again on a future day. On a particular Monday, Now orNever!sellsCreativeLabsbluetoothadapterforonly$15,buyingthemfromalocalsupplierat

$9 each. All unsold adapters at the end of the day are sent to a clearance channel from whichTick Tock! earns a net unit price (including shipping and other charges incurred by Now orNever!)of$5each.

2. If Now or Never! estimates demand to be normally distributed with mean 500 and standarddeviation of 70 units, how many adapters should Now or Never! order from its supplier tomaximizeitsexpectedprofit?
4. The local supplier offers Now or Never! the following option: they would decrease the priceat which they sell each adapter to Now or Never! to $6 (from $9), but buy back leftoveradapters from Now or Never! at the end of the day at $3 each. How would this optionchangeTick-Tock'soptimalorderquantity?
6. Should Now or Never! accept the supplier's offer? (Hint: Compare expected profits in partsaandb.)