Question: . Johnson electronics sells electrical and electronic components through catalogs. Catalogs are printed once every two years. Each printing incurs a fixed cost of $25,000, with a variable production cost of $5 per catalog? Annual demand for catalogs is estimated to be normally distributed with a mean of 16,000 and standard deviation of 4,000. Data indicates that, on average each customer ordering a catalog generates a profit of $35 from sales. Assuming that Johnson on wants only one printing run in each two year cycle, how many catalogs should be printed in each run?

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