Question: ohnson Electronics sells electrical and electronic components through catalogs. Catalogs are updated and printed every year. The production cost is $ 5 per each catalog.

ohnson Electronics sells electrical and electronic components through catalogs. Catalogs are updated and printed every year. The production cost is $5 per each catalog. Data indicate that, on average, each printed catalog generates a profit of $35 from sales (i.e., $40 revenue). What is the optimal service level for the catalog printing decision?

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