Question:

Johnson Electronics sells electrical and electronic components through catalogs. Catalogs are printed once every two years. Each printing run 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 indicate that, on average, each customer ordering a catalog generates a profit of $35 from sales. Assuming that Johnson wants only one printing run in each two-year cycle, how many catalogs should be printed in each run?

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document