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What is the quantity that Dan should order to maximize his expected profit?

What is the quantity that Dan should order to maximize his expected profit?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Dan’s Independent Book Store is trying to decide on how many copies of a book to purchase at the start of the upcoming selling season.  The book retails for $28.00. The publisher sells the book to Dan at $20.00.  Dan can dispose of all of the unsold copies of the book at 50% off the retail price, at the end of the season.  Dan estimates that demand for this book during the season is Normal with a mean of 1000 and a standard deviation of 250.  

Question 1:

What is the quantity that Dan should order to maximize his expected profit?  

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