PLEASE RE-SOLVE THIS QUESTION SINCE I PREVIOUSLY RECEIVED WRONG ANSWERS FROM CHEGG

Video eyewear uses a small video screen embedded in a device which resembles a pair of sunglasses to give the wearer a feeling of looking at a large movie screen. However, the market for standardized video eyewear products has been small because differences in users eyes have meant that many users experience eye strain when using these products.

You have just taken a position as the product manager of the MyView video player (see picture). To purchase a MyView video player, a customer first submits a detailed optometric evaluation to your company. Your company then makes-to-order a customized MyView player that matches the detailed specifications from the evaluation. The MyView sells for a retail price of $475. You are responsible for establishing the size of the MyView production line in your companys Santa Clara production facility. The MyView is anticipated to sell over a 4-month selling season. A capacity increment to produce one MyView over the 4-month selling season costs $50. The variable material costs to produce one MyView are $165.

Your supplier delivers raw materials to you on a just-in-time basis, so you only incur material costs for the MyViews you actually produce. At the end of the 4-month selling season, the production line will be scrapped, and completely different production lines will be put in place to produce subsequent products. Demand is forecast to be normally distributed with mean 9,000 and standard deviation 3,000.

1. A co-worker suggests that you put in a production line with a capacity of 9,358 units. If you build a production line of this capacity, what is the probability that you will have to turn away customer orders for MyViews (i.e., that you will receive more orders than your capacity can fill)? (I previously received an answer of 0.38 from Chegg, but it is the WRONG answer, please RE-SOLVE the question)
2. In developing their capacity proposal for the MyView production line, your coworker describes to you how they applied the newsvendor logic: First, I calculated the loss L as being the sum of the capacity and variable costs (L=$50+$165=$215). Second, I calculated the gain G as being the retail price less these costs (G=$475-$50-$165=$260). Then, I calculated the critical ratio and the optimal capacity. What is wrong with your co-workers logic? How many units of capacity should you put in place for the MyView production line? (I previously received an answer of 9001 from Chegg, but it is the WRONG answer, please RE-SOLVE the question)