TCX, Inc. is an Indian electronics system integrator, developing a new product as a generational upgrade. Owing to their long business history, they intend to work with Deltic, Inc. as the supplier of a key component for this product. Deltic sells this component for $(57) per unit with a 4-month delivery lead time. Assume Deltic covers all transportation and related processing until delivery.

TCXs demand forecast for the upcoming selling season (12 months) is a normal distribution with mean (9900) and standard deviation 3512,8. TCX sells each unit, after integrating their proprietary software, for $ 3. Assume that TCX uses a holding cost rate of 23 %, and any leftover units can be sold for $ 0 on average.

Due to the long lead time and high minimum order quantity required, TCX is planning on a

single order from Deltic to meet their needs in the next year. How many of these components should TCX order? Calculate the resulting expected annual profits for TCX.