Monthly sales of Better House magazine at Smith's Foods follow a normal distribution with a mean of 140 copies and a standard deviation of 15 copies.The magazine sells at Smith's for $1.25 a copy and costs Smith's $.50 per copy.Unsold copies are repurchased by the publisher for $.10 per copy.Smith's management estimates that if it runs out of Better House magazine it suffers a goodwill loss of approximately $.80 for each unsatisfied customer.
A.Determine Smith's optimal order quantity each month for Better House magazine.
B.Determine Smith's expected monthly profit from Better House magazine if it orders optimally.
C.The publisher of Better House magazine is offering Smith's the following option.It will increase its selling price from $.50 to $.55, but will also increase the amount it credits returned
magazines from $.10 to $.25.Should Smith's take this deal? Give your reasons.

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The Answer of Monthly sales of Better House magazine at Smith's Foods follow a normal distribution with a mean of 140 copies and a standard deviation of 15 copies.The magazine sells at Smith's for $1.25 a copy and costs Smith's $.50 per copy.Unsold copies are repurchased by the publisher for $.10 per copy.Smith's management estimates that if it runs out of Better House magazine it suffers a goodwill loss of approximately $.80 for each unsatisfied customer.
A.Determine Smith's optimal order quantity each month for Better House magazine.
B.Determine Smith's expected monthly profit from Better House magazine if it orders optimally.
C.The publisher of Better House magazine is offering Smith's the following option.It will increase its selling price from $.50 to $.55, but will also increase the amount it credits returned
magazines from $.10 to $.25.Should Smith's take this deal? Give your reasons.

Monthly Sales of Better House Magazine at Smith's Foods Follow