Question: ohnson Electronics sells electrical and electronic components through catalogs printed annually. Each printing run incurs a fixed cost of $ 5 , 0 0 0

ohnson Electronics sells electrical and electronic components through catalogs printed annually. Each printing run incurs a fixed cost of $5,000, which involves catalog design cost and printing setup cost. The variable production cost is $5 per catalog. Annual demand for catalogs is estimated to be uniformly distributed between 12,000 and 20,000. Data indicate that, on average, each customer pays $35 for a catalog. (the same as for the previous question)
b) Suppose that each unsold catalog can be sold to a recycling company for a price of $1. What is the optimal ordering quantity?

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