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The Fitness Shop Is Considering Ordering a Special Model Exercise

Question 56

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The Fitness Shop is considering ordering a special model exercise machine.Each unit will cost the shop $410,and it will sell for $750.Any units not sold at the regular price will be sold at the year-end model clearance for $340.Assume that demand follows a normal probability distribution with μ = 20 and σ = 6.What is the recommended order quantity?

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cu = 340,co = 70 P(dem...

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