Question: Demand for a perishable product is estimated to have a Normally distribution distributed with a mean of 336 units per week and a standard deviation

Demand for a perishable product is estimated to have a Normally distribution distributed with a mean of 336 units per week and a standard deviation of 48 units. The unit variable cost is $36.

a. How many units should be ordered to if price = $40?

b. How many units should be ordered to if price = $72?

c. How many units should be ordered to if price = $62?

d. What price is needed to justify ordering 415 units? What would happen to the distribution of demand?

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