Howard BooksFive questions.Lynelle Howard owns a thriving independent bookstore in artsy New Hope,Pennsylvania. She must decide how many copies to order of a new book, Powerand Self-Destruction, an exposé on a famous politician’s lurid affairs. Interest inthe book will be intense at first and then fizzle quickly as attention turns to othercelebrities.The book’s retail price is $27 and the wholesale price is $19. The publisher willbuy back the retailer’s leftover copies at a full refund, but Howard Books incurs $5in shipping and handling costs for each book returned to the publisher.Lynelle believes her demand forecast can be represented by a normal distributionwith a mean of 310 and a standard deviation of 100.Q1. Lynelle will consider this book to be a blockbuster for her if it sells more than510 units. What is the probability Power and Self-Destruction will be ablockbuster? (Round your z value to two decimal places. Enter your answer as apercentage rounded to two decimal places.)Q2. Lynelle considers a book a “dog” if it sells less than 70 percent of her meanforecast. What is the probability this exposé is a “dog”? (Round your z value totwo decimal places. Enter your answer as a percentage rounded to two decimalplaces.)Q3. What is the probability demand for this book will be within 40 percent of themean forecast? (Round your z values to two decimal places. Enter your answer asa percentage rounded to one decimal place.) 2Q4. What order quantity maximizes Lynelle’s expected profit? (Choose your zvalue to two decimals according to the round-up rule. Round your answer to onedecimal place.)Q5. Suppose Lynelle orders the quantity of the book that maximizes the expectedprofit. What would Lynelle’s expected profit be in this case? (Round your z valueto two decimal places. Do not round any other intermediate calculations. Roundyour answer to two decimal places.)

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ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter10: Digital Marketing And Social Networking

Section10.2: Dollar Shave Club Faces Sharp Competition

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Howard Books
Five questions.
Lynelle Howard owns a thriving independent bookstore in artsy New Hope,
Pennsylvania. She must decide how many copies to order of a new book, Power
and Self-Destruction, an exposé on a famous politician’s lurid affairs. Interest in
the book will be intense at first and then fizzle quickly as attention turns to other
celebrities.
The book’s retail price is $27 and the wholesale price is $19. The publisher will
buy back the retailer’s leftover copies at a full refund, but Howard Books incurs $5
in shipping and handling costs for each book returned to the publisher.
Lynelle believes her demand forecast can be represented by a normal distribution
with a mean of 310 and a standard deviation of 100.
Q1. Lynelle will consider this book to be a blockbuster for her if it sells more than
510 units. What is the probability Power and Self-Destruction will be a
blockbuster? (Round your z value to two decimal places. Enter your answer as a
percentage rounded to two decimal places.)
Q2. Lynelle considers a book a “dog” if it sells less than 70 percent of her mean
forecast. What is the probability this exposé is a “dog”? (Round your z value to
two decimal places. Enter your answer as a percentage rounded to two decimal
places.)
Q3. What is the probability demand for this book will be within 40 percent of the
mean forecast? (Round your z values to two decimal places. Enter your answer as
a percentage rounded to one decimal place.)

2
Q4. What order quantity maximizes Lynelle’s expected profit? (Choose your z
value to two decimals according to the round-up rule. Round your answer to one
decimal place.)
Q5. Suppose Lynelle orders the quantity of the book that maximizes the expected
profit. What would Lynelle’s expected profit be in this case? (Round your z value
to two decimal places. Do not round any other intermediate calculations. Round
your answer to two decimal places.)

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