Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the special roof every summer is 2200 cars with a standard deviation of 450. She must order all of the roofs from a supplier in a single order placed in January. Her supplier charges $750 for every roof ordered. Marianna sellsthe special roof for a $1500 premium on the Sports Coupe. Since Marianna has adopted a rapid product design process and completely redesigns the models every year she cannot carry over any remaining roofs to the next summer and has to sell them to an auto surplus store for $250 each. What do the costs indicate she should set her service level at? (Ignore Goodwil)

Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the special roof every summer is 2200 cars with a standard deviation of 450. She must order all of the roofs from a supplier in a single order placed in January. Her supplier charges $750 for every roof ordered. Marianna sellsthe special roof for a $1500 premium on the Sports Coupe. Since Marianna has adopted a rapid product design process and completely redesigns the models every year she cannot carry over any remaining roofs to the next summer and has to sell them to an auto surplus store for $250 each. What do the costs indicate she should set her service level at? (Ignore Goodwil)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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