McHardee Press publishes the Fast Food Menu Book and wishes to determine how many copies to print. There is a fixed cost of $5,000 to produce the book and the incremental profit per copy is $0.40. Any unsold copies of the book can be sold at salvage at a $.60 loss. Sales for this edition are estimated to be normally distributed. The most likely sales volume is 12,000 copies and they believe there is a 7% chance that sales will exceed 20,000. How many copies should be printed? If any unsold copies can be sold at salvage at a $.70 loss, how many copies should be printed?
McHardee Press publishes the Fast Food Menu Book and wishes to determine how many copies to print. There is a fixed cost of $5,000 to produce the book and the incremental profit per copy is $0.40. Any unsold copies of the book can be sold at salvage at a $.60 loss. Sales for this edition are estimated to be normally distributed. The most likely sales volume is 12,000 copies and they believe there is a 7% chance that sales will exceed 20,000. How many copies should be printed? If any unsold copies can be sold at salvage at a $.70 loss, how many copies should be printed?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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McHardee Press publishes the Fast Food Menu Book and wishes to determine how many copies to print. There is a fixed cost of $5,000 to produce the book and the incremental profit per copy is $0.40. Any unsold copies of the book can be sold at salvage at a $.60 loss. Sales for this edition are estimated to be
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