Question: s End. Tom offers Land s End two purchasing options: Option 1 . Tom offers a price of $ 4 6 for each unit, but
s End. Tom offers Lands End two purchasing options:
Option Tom offers a price of $ for each unit, but returns are no longer accepted. In this case, Lands
End throws out unsold units at the end of the season.
Option Tom offers to set his price at $ and agrees to credit Lands End $ for each unit Lands
End returns to Tom at the end of the season.
This seasons demand for this model will be normally distributed with mean of and standard deviation of
Lands End will sell those sunglasses for $ each.
a How much would Lands End buy if they choose option
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