The GoGo Bunny is a hot toy this Christmas, and the manufacturer has decided to ration supply to all retailers. A large retail chain has two channels: a discount channel and a high-service channel. The retailer plans to sell the toy at an $8 markup in the discount channel and a $12 markup in the high-end channel. The manufacturer ships 100,000 GoGo Bunnies to the retailer. The retailer predicted that demand for the toy in the high-service channel is normally distributed, with a mean of 85,000 and a standard deviation of 20,000. 

How many toys should the retailer send to the discount channel?

Answer rating: 100% (QA)

To determine the optimal allocation of GoGo Bunnies between the discount channel and the highservice ... View the full answer