Question: Please note the numbers may change from one question to another. Topgun Records and several movie studios have decided to sign a revenue-sharing contract for

Please note the numbers may change from one

Please note the numbers may change from one question to another. Topgun Records and several movie studios have decided to sign a revenue-sharing contract for CDs. Each CD costs the studio $1 to produce. The CD will be sold to Topgun for $5. Topgun in turn prices a CD at $18 and forecasts demand to be normally distributed, with a mean of 5,000 and a standard deviation of 2,000. Any unsold CDs are discounted to $1 each, and all sell at this price. Topgun will share 39 percent of the revenue with the studio, keeping the remaining for itself. What is the unit overage cost for Topgun

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